What if you have savings and debts?

dodger1

andy46 wrote: »

Sorry I am probably missing something obvious here but if the OP as explained has genuine credit card debts and owes money to his wife, he has to surely pay this off at some point. The fact that it would take his capital below £16,000 is purely coincidental and that would surely allow a claim for JSA. I think that this deprivation of capital rule would be clearly difficult to apply.
I would strongly advise the OP to seek advice on this from the DWP if he wants to claim JSA after paying off his debts which would reduce his capital

I can get contributions based JSA regardless of savings. It's housing benefit and council tax I'm concerned about. I suppose I could get the ex to take the legal route and surely the benefits agency couldn't say it was deprivation if a court awarded the payment to my ex. We are on very good terms so it wouldn't be a problem.

NASA_2

The easiest way round it is to claim Contribution Based JSA after having paid debts to Credit Cards/ex-wife. Then after the 6 months is up and you have to claim the Income Based side you can legitimately say what your savings are at that point and not be punished for it.

The question, about capital, only asks what your savings were in the last six months.

posted_2

You've got nothing to lose - keeping savings at the same time as paying credit card interest will eventually erode your savings anyway.

Oldernotwiser

Given that you mention having worked for 42 years, I wonder when you'll be 60 and, perhaps, eligible for pension credits?

dodger1

Oldernotwiser wrote: »

Given that you mention having worked for 42 years, I wonder when you'll be 60 and, perhaps, eligible for pension credits?

I'll be 60 in November but obviously hope to be working again long before then. Are pension credits something you can get prior to reaching 65? Do these then help in receiving other benefits? I don't have a private pension if that makes any difference.

dodger1

Just been on the pensions website and used the calculator for pensions credit. If I was 60 now based on my savings after paying the ex I'd be entitled to £38 per week. Would that then allow me to claim other benefits if I don't manage to get another job?

Oldernotwiser

I believe if you get the "Guarantee Element" of Pension Credits you will automatically be eligible for LHA and CTB,although this may be affected by any capital you have.

CCFC_80

alwaysonthego wrote: »

It would be up to the DM but if someone was to pay off non priority debts off to reduce their capital so they can claim benefits is classed as deprivation of capital. I do not know why you think that it would be a rule difficult to apply because the DWP can gain full access to claimants bank accounts.

The op makes no mention about JSA so one must presume he is claiming CBJSA.

A credit card debt in my opinion would be a priority debt but perhaps owing money to his wife would not be.Again as you say a DM would have to make the decision.If he is claiming CBJSA then the whole point of this thread is irrelevent as he does not have to mention his savings/capital.

alwaysonthego_2

andy46 wrote: »

A credit card debt in my opinion would be a priority debt but perhaps owing money to his wife would not be.Again as you say a DM would have to make the decision.If he is claiming CBJSA then the whole point of this thread is irrelevent as he does not have to mention his savings/capital.

A credit card debt is not a priority debt, whereas the mortgage, council tax, utility bills are and that is not in my opinion but in the opinion of the CAB. Any unpaid debts that can result in someone losing their home, any essential service or means that they are sent to prison (council tax debt) is a priority debt.
You are missing the point the benefits which would be affected are CTB and LHA, we are not talking about CBJSA.

CCFC_80

Oldernotwiser and Alwaysonthego.
Do you have some sort of pact to Thank each others posts or are you the same person ?