Redundancy, JSA, Family loan repayment

jj237

We are about to start claiming contribution based JSA due to redundancy (next week). We have a couple of loans for several £k from family members that we are in position to pay back in full out of our savings. If we did this in one lump sum now would it be considered as deliberately reducing our savings even though it is a legitimate debt? It would not bring us below the maximum savings threshold. What is the best way of paying this back otherwise. We don't want to be assessed on the basis of money that really isn't ours but obviously also don't want to be seen to be doing anything "wrong".

RazWaz

Talk to the job centre and say you have debts and want to make a payment plan to pay them off. They should help you find an acceptable weekly payment that you can offer family and friends. Don't just pay lump sums out of your savings as you can't use them to pay off debts that are not urgent (and urgent seems to be at the job centre's digression).

AsknAnswer2

Contributory based JSA does not look at savings and as the repayments would not bring you below the upper capital limit, there would be no deliberate deprivation in order to claim benefit - in other words you should be fine.

If you were claiming income based JSA and the repayments would bring you below the upper capital limit then it would be a different story. As it stands, it won't be a problem.

Vader123

As stated for Conts based JSA savings are looked into.

However 6 months after that if you are still claiming they will look at savings. Loosing £ks of money to "relatives" will just mean you are treated like you still have it.
Vader