Confused about mortgage relief on JSA

Ocean007

cazzybabe wrote: »

Hi

...there appears to be a discrepancy on which JSA is entitled to claim/recieve it after 13 weeks.

The jobcentre pages talk of income based JSA being entitled to claim - where does that leave the contributions based JSA claimants - of which i'm sure there would be a lot more than just my hubby....
.

Hi Cazzy,

I was a bit horrified when I saw that link today (think you mean this one http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits/Dev_016128.xml.html)
as yes, it sounds like contribution based claimants would miss out.

As detailed in the post above, it's seems it's more complicated than that and eligibility for SMI is decided according to whether you are eligible for income based JSA even if you are actually receiving contribution based JSA.

It's hard to get hold of accurate info but I was told this by a member of the mortgage team at the DWP and she was talking though my particular situation. She advised that people discuss their circumstances with the jobcentre in order that you don't lose out or have false expectations of what you might receive.

I do hope that helps.

cazzybabe

Having not done this before, I am i right in thinking that as my husband has worked for the last 34 years he would be in receipt of the contributions based JSA.

Does this therefore mean that:

1. if we have savings over 16k he would not be entitled to any benefit (including the contributions based JSA)?...
2. if we have savings between 6k - 16k the benefits would be reduced?
3. if we have saving less than 6k the full benefits would be given including SMI?..this would then be seen as on a par with income based JSA?..

I only work a few hours a week for a small amount of pin money, my husband however, earns quite well - 36k (it was 42k but that was reduced a few months ago to help the company save money)...
My concern is that our mortgage is 155k - £1190 per month.:eek: We have plenty of equity that we could cash in but as you know nothing is selling !!!

I'm so sorry for all the questions but i really dont know who to turn to.

Ocean007

Cazzy,

Your husband will receive the full amount of contribution based JSA (£60.50 per week) immediately, whatever your savings situation because contribution based JSA is not means tested, it's based entirely on NI contributions made.

If you had savings of less than £6k (perhaps less than £16k, the upper limit, but I don't know so check with the jobcentre) he would receive full amount of contribution based JSA and become eligible for SMI after 13 weeks.

I think you're right to highlight 'we' as I believe you're assessed as a couple.

I strongly recommend speaking to the jobcentre as everyone's situation is different and you don't want to miss out on what you're entitled to. In the meantime the links posted elsewhere in this thread might help.

Happy to answer any questions that I know the answers to (and apologies if I'm off-track on anything, it's a complicated system!).

cazzybabe

Ocean007

Thank you so much for your time and help.

Having spent 2 days looking into this minefield, I have come to the conclusion that it pays not to have savings...over 6k, It seems wrong that those people who have been more prudent with their money are penalised for the effort.

I always thought we should be a bit more reckless with our money....

Don't get me wrong we don't have a lot of savings but having 6 months worth of salary - just in case, actually works against you...

Once again thank you - i am now going to be reckless !!!

sammyjammy

Well not really hasn't your "just in case" moment just arrived.

Ocean007

You're welcome Cazzy! I'm glad to know you got to make some use of my own info gathering.

I agree it's disappointing to have to face spending savings on essentials but you're in a good position as you'll be sleeping a lot better than those people who don't have a savings safety net.

I think we've had such a boom period that it seemed like savings were always going to be used for a day in the sun rather than a rainy day emergency.

Hopefully this is all academic anyway and your husband will keep his job. Fingers crossed.

cazzybabe

Ocean007 wrote: »

Hopefully this is all academic anyway and your husband will keep his job. Fingers crossed.

I hope so too....;)