benefit means testing for savings

EdInvestor

AFAIK endowment policies are not counted as capital for benefits purposes as they are classed as insurance policies. The same may apply to investment bonds..

Voyager2002

paul101paul wrote: »

Thanks to all who have posted, as this has been a very interesting and enlightening thread.

My position is not currently under threat, but with the way the economy is going, i'm wanting to have all my bases covered.

I understand for the first six months it's not dependent on savings, but from then on it is. That's why I'm wondering whether it's best to act now before redundancy comes a knockin'.

I'm just wondering if I should open an account in my mum's name, transfer my cash over there and if/when I get made redundant can say to the DSS that I'm potless. Will I fall foul of "deprivation of capital" if I put this into place ? How far will they go back in bank statements ?

I have experienced redundancy before, over five years ago, and fortunately found another position within a month. However, the state of the economy wasn't as dire as it's predicted to be in 2009/10, so I wouldn't be too surprised for those finding themselves out of work, being like it for over six months.

Your proposed solution is illegal, as pointed out by another poster.

Some posts on this board indicate that Benefits Agency staff routinely look at the history of the bank accounts of claimants. So if at some point in the future you were claiming means-tested benefits, you might receive a polite enquiry noting that some months before a significant amount had been in your bank account, and asking you to explain what had happened to that money. In which case, you had better have a very good reason for giving it to your Mum!

Anyway, contributions-based JSA lasts for six months, and is not affected by your savings. It is only about sixty pounds a week. Other benefits (Housing and Council Tax) could be important to someone without a wage, and these benefits are means-tested.

Jules

john539 wrote: »

That's not correct.

Better to give no advice, than hearsay wrong advice.

This is what SSA told us when they were in with us doing ESA training. Why would they tell us something that was incorrect?

ceridwen

Jules wrote: »

This is what SSA told us when they were in with us doing ESA training. Why would they tell us something that was incorrect?

Could we have some clarification on what these initials stand for please? Ta.

ceridwen

Voyager2002 wrote: »

Some posts on this board indicate that Benefits Agency staff routinely look at the history of the bank accounts of claimants. So if at some point in the future you were claiming means-tested benefits, you might receive a polite enquiry noting that some months before a significant amount had been in your bank account, and asking you to explain what had happened to that money. In which case, you had better have a very good reason for giving it to your Mum!

Presumably they arent allowed to check out peoples bank accounts prior to the time the claimant was told they would be made redundant from their job though? Surely what one does with one's own money whilst one still knows that the job is "safe" is no-one else's business? I'm not talking personally here - as I just spend every penny I get the second I get it - then I know I'm the one who has had the use of my money safely. Personally - I take the view that I dont want to end up with high blood pressure, etc - and I would be likely to get this if I knew someone else had spent MY money (considering that I'm on well below national average salary) - but then I would be likely to get out the matches and set light to £5 notes sooner than let someone else take my money personally (well - in my case - translate that as: I'd give my money away to good causes pronto if there was any risk of it getting taken off me) - other people wouldnt be quite so adamant about it as me.

Which would just leave the practical point of - can one trust one's relatives? I would trust my parents not to steal my money if it was in their bank account - but my brother on the other hand would be highly likely to argue that half that money was his if anything happened to my parents - even if I explained to him in great detail that it belonged to me. A lot of people have "grabby" relatives.....

paul101paul

When redundancies are announced you are normally entitled to at least one months consultation period (3 months if more than 90 of you leaving) and your standard notice period, say a month.

That means it'll be 8 months between you knowing you could be out of work and when the means tested comes in. Anyone with savings would probably be best to take a slighly lower paid job before the end of that window and subside it with savings, until the end of the recession. That way you shouldn't eat through your savings as quick. As soon as the recession ends, look for something better.

It's always easier to find work if you have a job than not.

frank_benson

Thats good advice, paul

Saves you wasting your nest egg

frank_benson

paul101paul wrote: »

When redundancies are announced you are normally entitled to at least one months consultation period (3 months if more than 90 of you leaving) and your standard notice period, say a month.

That means it'll be 8 months between you knowing you could be out of work and when the means tested comes in. Anyone with savings would probably be best to take a slighly lower paid job before the end of that window and subside it with savings, until the end of the recession. That way you shouldn't eat through your savings as quick. As soon as the recession ends, look for something better.

It's always easier to find work if you have a job than not.

Nice one !. Show your new employer the same loyalty that your last one, showed you. It's a dog eat dog world.
They took advantage of you by paying you below your market worth when you were desperate, as soon as the market turns, move on. :T

Karriebea

I am working, my husband has retired and has a state pension.

If i was made redundant, I work in jewellery retail, so it's not an ideal company to be working in, in this economic climate, would i be entitled to any payments, at any point, towards my mortgage?

Also, anyone know what's going on with the lenders and repossessions? There was some talk a while back re the government making suggestions that thw banks hold out for a couple of years in the current climate?

From what i have read on here, it definately seems better to be a tenant than a owner. I don't understand this, as i still need to have a roof over my head, as does a tenant, and would have higher outgoings due to being responsible for my house.

Jules

ceridwen wrote: »

Could we have some clarification on what these initials stand for please? Ta.

Social Security Agency and Employment Support Allowance