Jobseekers Allowance - Over 16K in savings - What to do?

Ninja_Seb

I have over 16k in an ISA, so don't qualify for Jobseekers Allowance.

I was thinking, could I stuff some money into a private pension to get below the 16k or do they still count that as savings?

koolcat

When did you loose or get made redundant. If you were working for the past 2 years you will be abl to claim Contribution based Job Seekers which is not accessed on your current income or saving.

CCFC_80

lovehate wrote: »

Why are you sponging when you have over £16k in savings? Why should the state support you when you have the means to support yourself? Cash out your ISA and pay your own way!!

You could use the same argument that millionaires are still able to claim child benefit indefinitely and also maternity pay. These 2 benefits should be subject to means tests immediately and not be an automatic entitlement.

staffie1

Ninja_Seb wrote: »

I have over 16k in an ISA, so don't qualify for Jobseekers Allowance.

I was thinking, could I stuff some money into a private pension to get below the 16k or do they still count that as savings?

No they will trace it, and so they should. Live off your savings then claim benefit. Why should I work my backside off to keep you when you have all that money? Answer that one.

londongirl

Put it another way though and say someone has only a bit over 16k and has worked THEIR backside off for the last how ever many years to save this up - perhaps for house deposit or whatever, why should they have to use their hard earned savings while others who haven't bothered to saved and have blown their cash on the latest new car / plasma tv, or whatever get JSA or how every many benefits they are entitled to when they lose their job.
I know its not practical and there has to be a cut off - as you say millionaires shouldn't need to claim child benefit and someone with 200k savings i wouldn't have a lot of sympathy for if they wanted to claim JSA, however for someone who has saved and saved and are only just a few thousand over 16k or perhaps it's their inheritence which their parents saved and saved for and paid THEIR taxes while doing so - it just seems a little unfair to then have to spend thousands of it if you lose your job while others get to keep the things they have spent their cash on AND still claim benefits.

alwaysonthego_2

Toots wrote: »

Koolcat is correct in that you can still claim contribution-based JSA as this is based on the contributions you have paid in and it isn't a means-tested benefit. If you are still unemployed after 6 months then you would have to claim Income Support and you wouldn't receive help if you have all that money in the ISA.

If you transfer any savings into your Pension fund that would be classed as Deprivation of Capital and a claim under those circumstances would be fraudulent.

They would not be able to claim IS if they are a single person with no dependants only IBJSA and as you say it would not apply to the op because of their capital.

All your other advice is spot on!

CCFC_80

londongirl wrote: »

Put it another way though and say someone has only a bit over 16k and has worked THEIR backside off for the last how ever many years to save this up - perhaps for house deposit or whatever, why should they have to use their hard earned savings while others who haven't bothered to saved and have blown their cash on the latest new car / plasma tv, or whatever get JSA or how every many benefits they are entitled to when they lose their job.
I know its not practical and there has to be a cut off - as you say millionaires shouldn't need to claim child benefit and someone with 200k savings i wouldn't have a lot of sympathy for if they wanted to claim JSA, however for someone who has saved and saved and are only just a few thousand over 16k or perhaps it's their inheritence which their parents saved and saved for and paid THEIR taxes while doing so - it just seems a little unfair to then have to spend thousands of it if you lose your job while others get to keep the things they have spent their cash on AND still claim benefits.

Completely agree with you - It was scandalous that the Conservative government reduced entitlement for contribution based JSA from 1 year to 6 months in the early 90's and was never repelled by the current government. With times hard at the moment many people are going to need longer then 6 months to find a job.
I think the moral to this thread is - Do not save money and spend every penny you have and when times are hard, this government will look after you, not the people who have saved all their lives for a rainy day or perhaps that deposit on a house.

Ninja_Seb

londongirl wrote: »

Put it another way though and say someone has only a bit over 16k and has worked THEIR backside off for the last how ever many years to save this up - perhaps for house deposit or whatever, why should they have to use their hard earned savings while others who haven't bothered to saved and have blown their cash on the latest new car / plasma tv, or whatever get JSA or how every many benefits they are entitled to when they lose their job.
I know its not practical and there has to be a cut off - as you say millionaires shouldn't need to claim child benefit and someone with 200k savings i wouldn't have a lot of sympathy for if they wanted to claim JSA, however for someone who has saved and saved and are only just a few thousand over 16k or perhaps it's their inheritence which their parents saved and saved for and paid THEIR taxes while doing so - it just seems a little unfair to then have to spend thousands of it if you lose your job while others get to keep the things they have spent their cash on AND still claim benefits.

Exactly. I'm 2k over the limit. I've been saving like crazy whilst everyone was maxing out their credit cards, I drive a heap of a car, I don't own my own home yet. I just want to protect my savings which I have earnt. Looks like I've got to sqaunder some cash if I want to claim JSA.

mrcow

Don't shove it in a pension for goodness sake - you'll never see it again!

koolcat

Can the op put the remainder over £16k and just put it under his matress. In that way you wont be over the limit for savings.

Jupiler

Yep, staffie1, the way you expressed your opinion (which of course you are entitled to, I wouldn't have it any other way) hurts so much it is offensive, at least to me and how I feel about my personal circumstances. As if you have a monopoly on working your backside off. However, in the eyes of many (especially the "I'm alright Jack" brigade) I have probably been quite naive.

I've worked continuously for 29 years since the day I left school; taken opportunities to further my career and better my position whenever possible; struggled with cash many a time particularly in my younger years; never over-stretched myself financially by taking on too big a mortgage or any loans, or racking up any debt on credit cards for having holidays to places I can't really afford or flashy goods in the house or flashy cars; I've paid my taxes and deductions without complaint, acknowledging that the various things paid for through taxation are necessary (some just indirectly, which I don't use) and are for the better overall good of society.

In this time I haven't built up any savings except what I've been putting in to my pension and superannuation funds, and will never be in the position of having any form of inheritance to look forward to. Everything I have I have worked hard for myself.

However, I'm now being made compulsorily redundant, with the benefit of a reasonable redundancy payment which I'd hoped I could use to pay off some of my mortgage, with some form of limited ongoing benefit being available to me now I need it from the vast sums I've paid in over the last 29 years helping to tide me over until I am able to secure further employment (age prejudice permitting). As it is, from what I read on these very helpful message boards, I stand to get 6 months assistance then nothing.

My naivety in thinking that the redundancy pay in my contract of employment was compensation for loss of a career I'd worked hard for and could help me in some way in the event of redundancy now seems astonishing. It is no help to me whatsoever unless I can find a job within the first few months of my termination date (and I'm quite happy to take any job I'm capable of on much lower pay if need be).

Under more normal circumstances with a more stable job market this six months safety net might be enough, but now? Time will tell for me, but if I don't get a job it won't be for want of trying.

With regard to the deprivation of capital rule (specifically the bit about reducing my not-excessive mortgage) I might as well have made no effort over the years in terms of working and bettering my position and just scrounged off the state from the start - or alternatively followed the high-risk approach based on personal greed which benefitted so many and which led to this current shambles in the first place.

Well, that was a bit of a lengthy ramble for which I apologise. Although I acknowledge I'm in a better position than many (I could possibly eke out my redundancy pay to last me about 16-18 months with luck if necessary, by extending the length my mortgage has to run), I often feel very down about it all, not quite suicidal yet but I do often wonder what the point is now, and typing this has at least been therapy for me.