just lost job

HADENOUGH_3

Hi Can anyone advise,just been made redundant,I have 16 thousand in savings and owe the same in bank loans will this affect my jsa?
Can I approach the bank and ask for some breathing space,do not really want to use savings,if they agree how long will they give me.Have heard sometimes debt is sold on to a debt collector?
Ialso claim industial injury benefits forn an accident I had in 1999,is this classed as income.
Thanks

chantelle1

i think if u have any savings over 16000 this will affect any benefits you might be entitled to as for your bank im not too sure on what there procedure is you will have to speak to job centre and if you have payment protection on your loans i think that will pay for your loans but you need to speak to job centre and your bank. as a result of your industrial injury benefit i dont think this is classed as income as my partners ALSO allowance does not as this was for an injury hope this helps.

lynzpower

Definately a great idea to pay your loan off- especially as you are heading into default!!

DO it!!

briona

HADENOUGH wrote: »

Hi Can anyone advise,just been made redundant,I have 16 thousand in savings and owe the same in bank loans will this affect my jsa?
Can I approach the bank and ask for some breathing space,do not really want to use savings,if they agree how long will they give me.Have heard sometimes debt is sold on to a debt collector?
Ialso claim industial injury benefits forn an accident I had in 1999,is this classed as income.
Thanks

Assuming you have made enough NI contributions for the past two tax years, you can claim contributions-based JSA for 6 months. This is not means-tested and so will not be affected by your savings. You may still have to declare them on the form though (perhaps someone in the know could clarify this?).

HOWEVER, after 6 months, if you hadn't found a job, you would have to apply for income-based JSA which IS means-tested. Having savings/capital of between £6,000 and £16,000 means that for every £250 or part thereof you lose £1 of benefits. If you have savings of over £16,000 you are not entitled to claim means-tested benefits.

Note also that if you decided to clear your loans now (having lost your job) it may be classed as deprivation of capital, which means that you would not be entitled to claim benefits even though you no longer had the savings.

HADENOUGH_3

Thankyou all for the replies am I not entitled to JSA for the first 26 weeks regardless of what money I have in the bank?

briona

lynzpower wrote: »

Definately a great idea to pay your loan off- especially as you are heading into default!!

I assumed that would class as deprivation of capital?!

After all, he/she has had the 16K in savings plus the equivalent debt for a while (one assumes) without feeling the need to clear the debt with the savings up to now. As 16K is the cut off point for entitlement to means-tested benefits, it would almost certainly look calculated to clear the debts now...

HADENOUGH_3

what would happen if I did not tell them about my savings and moved the money elsewhere?

briona

HADENOUGH wrote: »

what would happen if I did not tell them about my savings and moved the money elsewhere?

Then that would constitute fraud which is criminal offence for which you can be prosecuted. You would get a criminal record, and depending on the severity of the crime, a custodial sentence, as well as being made to pay back all monies claimed.

The benefits system is paid for by contributions from tax payers. With the recession, more people are losing their jobs and having to claim benefits meaning that are fewer tax payers. With less money going into the system and far more coming out, I strongly believe that if you have the means to support yourself, then you should be doing it.

Oldernotwiser

HADENOUGH wrote: »

Thankyou all for the replies am I not entitled to JSA for the first 26 weeks regardless of what money I have in the bank?

As long as you have paid NICs for the appropriate period you can claim means tested JSA which will not be affected by your savings. Hiding your savings constitutes benefit fraud, for which you can be prosecuted.

Oldernotwiser

lynzpower wrote: »

Definately a great idea to pay your loan off- especially as you are heading into default!!

DO it!!

As has already been said, this would constitute deprivation of capital and benefits would be assessed as if he still had the savings. However, the OP's allowed to make normal monthly payments out of his savings without this happening.

shelly

Oldernotwiser wrote: »

As long as you have paid NICs for the appropriate period you can claim means tested JSA which will not be affected by your savings. Hiding your savings constitutes benefit fraud, for which you can be prosecuted.

Means tested JSA (income based) is affected by savings.