Savings Limits with JSA couples

MarieAAP

Hi Folks

What is the saving min / max for contributions based JSA for a couple. I have seen nothing which confirms what it is?

And also, is a company pension counted in those savings?

M

AsknAnswer2

There is no saving threshold for contributory based JSA, only for income based. If you receive an occupational pension, the first £50 per week is disregarded.

MarieAAP

Really, truly?

As we have over £6k of savings (which is also part of my slowly growing pension pot), and as we are trying to replace the car, I know within 3-4 weeks, the money would have gone under £6k.

Neither of us are near 40 yet, so pension credits are not necessary.

Do you have the info / website, where i can confirm this - I need to persuade my OH that this is the case.

Thanks ever so much
M

MrsManda

Savings limit for income based JSA is £16,000, contribution based is not means tested.
From direct.gov.uk

How it works


There are two types of Jobseeker's Allowance, 'contribution-based Jobseeker's Allowance' and 'income-based Jobseeker's Allowance'.
Contribution-based Jobseeker's Allowance

Jobcentre Plus can pay this for up to 182 days. It’s based on how much National Insurance you have paid in the last two tax years. Generally, self-employed contributions will not help you qualify for contribution-based Jobseeker’s Allowance.

Income-based Jobseeker's Allowance

This is based on your income and savings. You may get this if you have not paid enough National Insurance contributions (NICs) (or you've only paid contributions for self-employment) and you're on a low income.

So basically, it's only if you do not qualify for contribution based JSA that your income and savings are taken into account.

madamejones_2

MarieAAP wrote: »

Really, truly?

As we have over £6k of savings (which is also part of my slowly growing pension pot), and as we are trying to replace the car, I know within 3-4 weeks, the money would have gone under £6k.

Neither of us are near 40 yet, so pension credits are not necessary.

Do you have the info / website, where i can confirm this - I need to persuade my OH that this is the case.

Thanks ever so much
M

You can claim JSA (cont) for 26 weeks and this is based on whether you have paid sufficient NI contributions in the last 2 tax years. Savings are ignored and any partner's income too. When the 26 weeks ends, you can then claim (JSA income based) and this where any savings & other income is taken into account. If you have over £16K you cannot claim, if you have under (joint savings - not per person) the first £6k is ignored and the rest is calculated into a weekly income.

MarieAAP

Phew, and there I was thinking, we had to find a car quickly otherwise the money would disappear as we would have to use that to live off.

We have been looking for about 2 mths for a car, but as I didnt know I was being made R until 3 weeks ago, there didnt seem to be any rush for it. I hate car buying at the best of times, and as my OH knows nothing about them, except how to be a passenger, its down to "little old me".

Also I have £3k on a CC (wedding) on an 0% interest until Xmas, and we have the money in savings, ready to pay it off 3 wks beforehand - just incase there was any probs in transferring the cash across. I am not cynical, AM I????

I was going to pay that off straight away when I thought we would be saving 'means tested'. As no-way was I going to jepidise (sp) the paying of the mortgage on the house, when I have the savings ready to pay it off. Who knows if both of us can find work and resave that amount in 3 months....

But by your confimation (and I sure wish Direct.gov, would put it black and white) that we are not going to penalise it until after 26 weeks. And by that time a car will have been bought, the 0% will have run out, and we will BOTH be back in work

Well fingers crossed.

M&R

PS You know it really is a shame that as a couple the savings amount is not slightly increased....