Mortgage/Income Protection and Job Seekers Allowance

tcr_3

hakko wrote: »

Hi

Any one from JSA/DWP can give us input on this?

My dad had income protection to cover mortgage payments (it actually covers 50% of it).

Yet, seems JSA have reduced his allowance. And yes, he ended up in over draft, £180 in fees etc. etc.

Logically I thought his JSA would not be reduced, as it's for the mortgage payments, which he paid insurance for.

I suppose he is a homeowner and is asset rich, vs people in rented accomodation.

There's a tortuous calculation which needs to be done by the DWP staff, it considers many things including insurances, service charges, endowment premiums, interest not being met by DWP, capital repayments, whether the MPP insurance is paid to Dad, or could be paid to Dad or is paid to the lender etc etc.

I'm not being funny, but it's just too complicated to explain without seeing your Dad's paperwork.

You'd be best to call DWP on monday and ask them to send out a breakdown of how they've worked out the income from his MPP policy. And maybe give folks a shout over on the benefits board on this forum, there's people well versed with the SMI scheme over there and who perhaps haven't seen your post here tonight.

Kentgent

I reached my 6 month period when one would transfer between contribution based and income based JSA, only to find out that the interpration of the 'legislation' (a word that keeps getting quoted to me by the DWP) is that ANY mortgage protection money that gets paid directly into my bank account, irrespective of whether it goes out again to pay my mortgage (a debt) immediately disqualifies me from claiming ANY form of JSA......I was advised that if I could get the insurance company to pay my mortgage lender direct, then this would resolve the problem and I could claim income based JSA as normal.....HOWEVER my mortgage protection insurer will NOT pay my lender direct, and insists that the money must be paid into my bank account....therefore I am stuffed for having been a good citizen and paid all my mortgage protection premiums.
I have of course appealed to the benefits agency.....so far its taken them a month and no response - when I called this morning they advised me that they have passed my papers on to the appeals department for a reconsideration which will take an undefined amount of time while they 'interpret the legislation' and then if they do not reconsider their original decision it will go to appeal which will take a' minimum of 6-8 months'!!! So WHATEVER I do, I am stuffed for at least 6-8 months, by which time of course the mortgage protection will have run out, and I will be defaulting on the mortgage....and becoming a burden on the state.....
All because someone in the benefits agency is unwilling to realise that they are actually creating the problem.......How's that for rubbing salt into the wounds? :T

vicky_Run

:(Hi, My Dad was made redundant in June he's 61 and finding it difficult to find a job anywhere (he's applied for jobs hundreds of miles away willing to comute) he's got morgage protection and as he's now been without a job for over six months been told it has been stopped due to the £240 he receives each month from the insurance company. A welfare rights officer came to the house to discuss things with him and after speaking to him said he should actually be claiming sick pay, due to various ailments (which he's always been to proud to claim a penny for). He spoke to his Dr who agreed and signed him off sick but he has now been told he can't claim sick pay either again because of his insurance policy. The only other income coming into the house is invalidity benifit for my mother who has emphysema (which means the heat needs to be kept constant in the house taking the gas/elec payments alone to nearly £2000 per year alone). Is there any other help for a man who has worked full time paying tax and NI for over 46 years, who's now being reduced to selling off anything that may be of value from his home JSA/DWP?

Imafretosociety

I am now in this same situation but have added concern as I have a loan protection that needs proof that I am signing on.
WHEN THE AB1 forms were around there was no problem but as they have now been scrapped by Work & Pensions,you need to show that money is getting paid into your bank account.

I have paid taxes all my working life and when you need support it gets thrown back in your face.

Never work,come from a foreign country and never contribute to the system and YOU GET EVERYTHING!!

Absolute Disgrace.

kazzah60

to the original OP
mine and Dh's experience of mortgage protection cover is this
dh made redundant - claim JSA - turned donw for JSA due to his small occupational pension taking him above the JSA income threshold

BUT even if he didn't have pension we were told by Job Centre Plus that as the mortgage protection insurance was paid into my husbands account ( it was £900 per month) it would count as income and would wipe out his entitlement to JSA - I believe it is different if the money goes directly to your mortgage lender

we appealed the decision to not award him JSA - after reading here that he should be entitled to contribution based JSA- but we were turned down - again due to our income
to be honest he has been made redundant 3 times in 5 years and we get the same response every time from the DWP - he needs to sign on to protect his NI stamp- but NO income due to pension and insurance

hcb42

you are not turned down for contribution based JSA based on income or savings. You could have £1m in the bank or partner could be earning £1m and still claim contribution based JSA for six months, providing you are eligible and looking for work. You are turned down if your prev earned credits are not enough to make you eligible, hence the term contribution based.

I havent been in the situation of mortgage protection for some 10-12 years or so, but how it used to work was I claimed for contribution based JSA, and got the form filled in for themortgage payment. After six months the JSA stopped, but I was still signing on and got the mortgage payment for another3-4 months or whatever it was. Of course I realise now they dont fill in the forms at the job seekers office, but ultimately as long as I was signing on and actively seeking work, the mortgage payment (income protection) was still made

peti_2

Hi everyone :-)
I am about to finish my contribution jsa. I have income protection insurance, ones a month i have to post my bank statement showing jsa money going to my account. Now they want me to post my job search (i am not going to get any more jsa money). Don't really want to keep going to job centre just to sign on for my stamp - didn't find them very helpful... Does anybody know if i have to do that to keep my insurance? Or can I just post my job search? Is insurance going to contact job centre to check?
Thank you x

smerch1468

peti wrote: »

Hi everyone :-)
I am about to finish my contribution jsa. I have income protection insurance, ones a month i have to post my bank statement showing jsa money going to my account. Now they want me to post my job search (i am not going to get any more jsa money). Don't really want to keep going to job centre just to sign on for my stamp - didn't find them very helpful... Does anybody know if i have to do that to keep my insurance? Or can I just post my job search? Is insurance going to contact job centre to check?
Thank you x

When I was unemployed last year and went over to from Contributions to Income based JSA, I continued to sign on for stamp purely because it was a requirement that I maintained a Jobseekers Agreement. The only way I could do this was by signing on. If you think about it the Jobseekers Agreement is the only way you can make a legal declaration that you are looking for work and that why the insurance company ask for this.

In anycase, when you retire if you are close to 30 years worth of NI contributions you will value signing on for stamp purposes as that could be the difference between receiving a full or reduced state pension.

wire1966

Peti

I'm in a similar position, JSA will stop in Nov, I won't get income based JSA as my partner works 29 hours a week.
I have 2-3 policies to cover all my debts.

My insurance companies request bank statements showing payment to my account which I've been doing...In Nov I don't get any money so I cannot supply bank statements only a declaration that I'm still looking for jobs. Will they accept that?

Thanks

carebear13

Hi- when my hubby was made redundant wecouldnt get ib-jsa either, but yes the policies still paid out, as long as you are still 'signing on' and job seeking then they willpay out (ours did anyway), you just have to prove that you are job seeking, but the job centre still have to sign/stamp the form. It doesnt matter if you are getting the money or not.