JSA claim - savings over £5500

rh1960

Hi. I took redundancy in the summer and am now trying to claim dole. My savings exceed the £5500 maximum allowed by HM Government by about £3000. It looks as though I have to whittle this down to below the government set limit before they will pay me JSA

I had been in continuous employment for well over 30 years before my firm folded. I worked my !!!! off to build my savings up to this level and it seems I won't get a bean off the Government til my savings go below the magic £5500.

Where do I stand if I just withdraw the 'excess' money and stash it? If I claim and slowly drip feed it out in amounts of about £300 til it dips below the magic £5500 will they notice and stop my payments?

What if I buy frends and relatives luxury goods for Xmas with the excess dosh - I'd prefer this much more than frittering it away just to live - it really irks me to have to live on my hard earned savings:mad::mad::mad::mad::mad:

Any advice?

- thanks in advance!

ceridwen

I'm a bit puzzled by the figure of £5,500 - as I understood that its £6,000 savings one is allowed to have without losing due benefit?

I did read elsewhere something about them taking the last months salary into account and knocking that amount off the £6,000 on the one hand and thinking "maybe they make that a standard £500 knock-off for everyone regardless of their income level" on the other hand.

Could you clarify please on that point? - ie "is there a knock-off from the £6,000 savings one is allowed? or is it £6,000 as they say?".

I would think its the £6,000 they say it is...though, yep...I know £6,000 isnt actually very much at all if it had to last for a lengthy period of unemployment...(because dole money isnt enough to live on no matter how economical one is).

EDIT: they dont take savings into account during the first 6 months on the dole (assuming you have paid enough N.I. stamps to get the income-related benefit). It just becomes a problem as I understand it if the unemployment goes on for longer than 6 months and therefore one gets swopped to the means-tested form of benefit.

I dont know what the position is re spending ones savings during the first 3 months of that initial 6 month period - as I would think its possible to do that - because I believe they just ask for the last 2 or 3 months worth of bank statements if you get to Month 7 and do have to have that swop to means-tested benefit.

I did read something the other day which seemed to imply that they have to accept one can use savings to make the monthly payments on a loan one took out prior to unemployment - but I dont know if that is correct and it would need checking as to whether it would be a good idea to buy any new household goods needed (eg washing machine/cooker/etc) before being officially told one is about to be unemployed???

(Obviously I wouldnt expect people with plenty of spare cash to claim benefit of ANY description - but the amount of savings you state is well within what an "ordinary person in the street" might well have accummulated from a very standard-level salary.)

Voyager2002

Firstly, savings make no difference to contributions-based JSA, which is what you would claim during your first six months of unemployment (assuming that you have paid your NI stamps over the last few years).

After six months, you claim 'income-based' JSA, which is indeed means-tested. If your savings are above a certain level (I think it is six thousand pounds) then the amount you receive is reduced, depending on how much you have saved. It is only when your savings are more than about fifteen thousand that you don't get anything at all.)

You are expected to make reasonable use of your savings to support yourself: if you choose to dispose of them by gambling, buying luxury goods or giving away expensive presents, you might be treated for benefit purposes as if you still had the money. Do a search on the term "deprivation of capital" to find out more.

dmg24

ceridwen wrote: »

I'm a bit puzzled by the figure of £5,500 - as I understood that its £6,000 savings one is allowed to have without losing due benefit?

I did read elsewhere something about them taking the last months salary into account and knocking that amount off the £6,000 on the one hand and thinking "maybe they make that a standard £500 knock-off for everyone regardless of their income level" on the other hand.

Could you clarify please on that point? - ie "is there a knock-off from the £6,000 savings one is allowed? or is it £6,000 as they say?".

I would think its the £6,000 they say it is...though, yep...I know £6,000 isnt actually very much at all if it had to last for a lengthy period of unemployment...(because dole money isnt enough to live on no matter how economical one is).

EDIT: they dont take savings into account during the first 6 months on the dole (assuming you have paid enough N.I. stamps to get the income-related benefit). It just becomes a problem as I understand it if the unemployment goes on for longer than 6 months and therefore one gets swopped to the means-tested form of benefit.

I dont know what the position is re spending ones savings during the first 3 months of that initial 6 month period - as I would think its possible to do that - because I believe they just ask for the last 2 or 3 months worth of bank statements if you get to Month 7 and do have to have that swop to means-tested benefit.

I did read something the other day which seemed to imply that they have to accept one can use savings to make the monthly payments on a loan one took out prior to unemployment - but I dont know if that is correct and it would need checking as to whether it would be a good idea to buy any new household goods needed (eg washing machine/cooker/etc) before being officially told one is about to be unemployed???

(Obviously I wouldnt expect people with plenty of spare cash to claim benefit of ANY description - but the amount of savings you state is well within what an "ordinary person in the street" might well have accummulated from a very standard-level salary.)

Are you on something?

woody01

rh1960 wrote: »

Hi. I took redundancy in the summer and am now trying to claim dole. My savings exceed the £5500 maximum allowed by HM Government by about £3000. It looks as though I have to whittle this down to below the government set limit before they will pay me JSA

I had been in continuous employment for well over 30 years before my firm folded. I worked my !!!! off to build my savings up to this level and it seems I won't get a bean off the Government til my savings go below the magic £5500.

Where do I stand if I just withdraw the 'excess' money and stash it? If I claim and slowly drip feed it out in amounts of about £300 til it dips below the magic £5500 will they notice and stop my payments?

What if I buy frends and relatives luxury goods for Xmas with the excess dosh - I'd prefer this much more than frittering it away just to live - it really irks me to have to live on my hard earned savings:mad::mad::mad::mad::mad:

Any advice?

- thanks in advance!

So let me get this right.........
You want to keep your savings, then want the taxpayer to fund your living expenses.

Why should HONEST (look the word up)taxpayers pay your housing costs etc.
I am still confused about the statement 'it really irks me to have to live on my hard earned savings'!
I also have to live off MY hard earned savings/wages so why shouldn't you?
You are either very stupid or very selfish.

If you stash it, i hope you get caught...thats benefit fraud and hence the scummiest of the scum.

rh1960

Woody - I KNOW the scummiest of the scum, I was in his house barely able to control my anger at the palace he lives in while he works self employed and claims every benefit going.

I don't know his name but I'll give you his address if you like.

dmg24

rh1960 wrote: »

Woody - I KNOW the scummiest of the scum, I was in his house barely able to control my anger at the palace he lives in while he works self employed and claims every benefit going.

I don't know his name but I'll give you his address if you like.

Report Benefit Fraud

woody01

rh1960 wrote: »

Woody - I KNOW the scummiest of the scum, I was in his house barely able to control my anger at the palace he lives in while he works self employed and claims every benefit going.

I don't know his name but I'll give you his address if you like.

So if you can't beat 'em then you join 'em eh?

ceridwen

dmg24 wrote: »

Are you on something?

:rotfl::rotfl:

real1314

rh1960 wrote: »

Hi. I took redundancy in the summer and am now trying to claim dole. My savings exceed the £5500 maximum allowed by HM Government by about £3000. It looks as though I have to whittle this down to below the government set limit before they will pay me JSA

I had been in continuous employment for well over 30 years before my firm folded. I worked my !!!! off to build my savings up to this level and it seems I won't get a bean off the Government til my savings go below the magic £5500.

Where do I stand if I just withdraw the 'excess' money and stash it? If I claim and slowly drip feed it out in amounts of about £300 til it dips below the magic £5500 will they notice and stop my payments?

What if I buy frends and relatives luxury goods for Xmas with the excess dosh - I'd prefer this much more than frittering it away just to live - it really irks me to have to live on my hard earned savings:mad::mad::mad::mad::mad:

Any advice?

- thanks in advance!

Right5, here's some actual info about claiming JSA.

1. If you're claiming JSA-contribution based [aka JSA(c)] (which it sounds like you'd get) for the first 6 months, your savings do not make a jot of difference
. This money is what you paid some of your national insurance for.

2. The high level savings limit is £16,000; that's the point above which you can't get anything. The £6000 figure is the lower limit level, below which your savings make no difference.

3. For savings between £6000 and £16000, they will reduce your benefit (not the JSA(c) though) by £1 a week for each £250 over the £6000. So for £8500 you'd have a reduction of £10 a week.

4. If you stashed money away and they found out about it (there are ways tey can find out), you could be done for fraud. And that would probably mean no job ever again.

littlemrtinkle

I can see how the op gets a bit erked. Rumours are about that there could be redundancys where i work. If you had two people in the same circumstances (been in job same length of time, earn the same, have same number of kids etc) one person is spend spend spend. Other chooses to put some of their income away in savings. Both get laid off at the same time why should the spender be entitled to more money than the saver?