JSA claim - savings over £5500

CCFC_80

redz wrote: »

The application form for income based JSA does/or did ask for details of savings if they are £5,500 or over. I'm assuming that it is because if a person is just below the £6000 threshold there may be a possibility that they may have deliberately deprived themselves of some savings to receive the full entitlement to JSA.

Sorry but I do not get this at all !!! . If this is the case then the person could deliberately deprive their capital below £5,500. Obviously I am missing something in your explanation.

ceridwen

Vader123 wrote: »

Is it just me that finds this mindset pathetic? (I won't comment on ceridwens post history!!!).

Lets say ceridwen has £500 over the threshold for means tested benefits.

Instead of just waiting for that £500 to run out she would rather give it away.

LOL

Vader

Hmmm.....well I can see from a recent thread you started that you are upset at the moment because of that friend of yours dying - but please dont take it out on me. I hope you soon feel better.

dickydonkin

ceridwen wrote: »

Have you got a link to "chapter and verse" on that on a suitable website for us. Put like that - one is left wondering whether if, for the sake of argument, one had a month notice period and was told not to work it out by the employer whether one would have to put in a claim for JSA immediately and they might try and treat that months salary as savings. It needs to be clear to people that they could use that month (or whatever) of PILON to live on throughout their notice period and that benefit money (and any disqualification on the grounds of having "too much capital") would not start up until the job had officially finished - as the notice period was over.

The way you've put it people might worry that if they received £2,000 salary for instance during their (unworked) notice period that the DWP would go "right - thats £2,000 - you're only allowed another £4,000 of savings before we start penalising you". Whereas - they would be allowed their £2,000 salary to live on during that notice period AND the £6,000 allowable savings.

First, I am speaking from experience here. No 'Chapter & Verse I'm afraid, but my statement is fact.

Following redundancy, I was paid 3 months PILON, however, on my termination of employment date, I claimed JSA immediately and was duly paid JSA. I was well over the threshold and actually receiving two pension incomes at the time, however, I was still eligible for contribution based JSA.

As repeatedly quoted on this thread, CONTRIBUTION BASED JSA will be paid irrespective of savings, capital, or whatever else you want to call it for 6 months. PILON will be classed as CAPITAL.

Any affected person will not be disqualified from claiming Contribution BASED JSA if any PILON that is paid and accrued savings exceeds the threshold for INCOME BASED JSA, however, as the name of the benefit suggests, Contribution based JSA will only be paid providing the affected person has paid sufficient NI contributions.

ALIBOBSY

redz wrote: »

The application form for income based JSA does/or did ask for details of savings if they are £5,500 or over. I'm assuming that it is because if a person is just below the £6000 threshold there may be a possibility that they may have deliberately deprived themselves of some savings to receive the full entitlement to JSA.

This is because when processing if the declared savings is close to the limit ie within around £500 the processor/job centre advisor are expected to verify the savings via copies of bank statements.
It is not cost effective to verify ALL savings so they look at ones close to the limits.
There is also issues around checking if there has been a sudden drop in savings just before the claim.

But other posters are correct PILON is now classed as capital, but capital only effects income based JSA.

Ali x

ceridwen

Thanks for that.

In that case - then it would be immaterial to those on contributions-based benefit presumably as to whether to start their claim immediately or at the end of the PILON period (THEIR pilon wouldnt cost them benefit money due even if their savings were over the limit at the time).

Those who were going to go straight onto means-tested benefit would be best to go through the PILON period and then claim (after all one shouldnt be penalised for the fact that the employer wouldnt let you work out your notice period).

Have I got that right?

dickydonkin

ceridwen wrote: »

Thanks for that.

In that case - then it would be immaterial to those on contributions-based benefit presumably as to whether to start their claim immediately or at the end of the PILON period (THEIR pilon wouldnt cost them benefit money due even if their savings were over the limit at the time).

Those who were going to go straight onto means-tested benefit would be best to go through the PILON period and then claim (after all one shouldnt be penalised for the fact that the employer wouldnt let you work out your notice period).

Have I got that right?

Well not really.

Imagine someone had been made redundant and did not claim JSA until their PILON period expired - lets say after three months following termination of employment. Then supposing that person was fortunate to get a job once the three months period had lapsed.

Although that person would likely be eligible for 3 months contribution based JSA, they would not have received a penny by virtue of not claiming for jsa immediately. That is why it is essential to claim for jsa IMMEDIATELY after confirmation of redundancy.

The example I have given could lose someone in the region of around £800 jsa by not claiming immediately after dismissal.

For someone who has not made sufficient NI contributions in the preceeding tax year may not be eligible for contribution based jsa and may have to claim income based jsa.

However, by not having paid sufficient NI contributions would suggest that the person had only been employed for a short period at the company from where the redundancy situation has occurred, therefore the lieu of notice period would be negligible and if that person had not worked for the company for two complete years, redundancy payments would not come into the equation.

It would be prudent (IMHO) to always sign on for JSA immediately after confirmation of redundancy as there are also other considerations such as loan insurances/mortgage protection schemes etc. that may require the policy holder to be registered as unemployed - irrespective of eligibility to claim. Furthermore, by attending jobseekers, they have a record of your efforts to seek work - which is vital for claiming benefits.

woody01

Having children on the other hand is definitely under ones control and a personal choice and yet they expect the rest of us to pay for it

It's an enormous shame that your stupidity with regards to comments such as the above, cloud your thought process so often.

I pay over £2K per month in income tax, so obviously that invalidates your comments immediately.
I have 2 children and pay their way, and a great many others (including yours when you were unemployed) with what i put into the government pot.