jobseekers allowance income versus contribution

tomerke

Hi,

for contribution based JSA you get just about £65 a week. However for income based JSA you get £65 a week PLUS council tax benefit worth £80-100 a month and even SMI mortgage support worth £600 a month AND many other benefits I assume like child support and others...

There seems to be a big advantage in having saving just under 16k versus about 17 to 20k?? Am I missing something?

thanks

dmg24

You may qualify for all of the above on CB JSA also. It depends on what other income/ capital you have.

tomerke

assuming you have savings over 16k..?

teeni

the difference between income based jsa and contribution based jsa is

income based - paid if you have not paid the necessary ni contributions in the relevant years, or if you have received contribution benefitfor 6months and still entitled to benefit. only paid if your household income is within certain levels, for example if you have a resident partner who is woking their income is taken into acount less a small disregard cant remember how much. and savings below capital levels

Contribution based - paid if you have made the necessary contributions and only for 6 months as you have paid contributions for this your savings and income are irrelevant.

In both cases there is an entitlement to other means tested state benefits but they are only automatic if you are on income based jsa. you dont have choice which one you get .it is totally dependant on circumstances.

tomerke

my next question is this. I have saving of about 30-40k. But have chosen to invest about 25k abroad. No income at the moment from it. I am currently on Contribution JSA.
I assume I will now be eligible for income JSA as I will have less than 16k of savings. Now I dont know if they count investments abroad as savings??
Even if they do I don't expect to mention it I guess. Any thoughts on this?? Thanks

McKneff

But you dont have 16K of savings, you have 30-40K
I dont see that it matters where it is.

Plenty of thoughts on it but I would probably get banned from the boards for saying them.

jetplane

You assume a lot!

There is no £16,000 rule for JSA and if you fail to tell the DWP of all of your income and savings at home and abroad you will be commiting fraud.

Contribution based JSA is not means tested and is paid regardless on what other income or savings you or your partner have. It is paid for 6 months max if you satisfy the relevant NI contributions. To claim in 2010 that means Apr 07 - Apr 09.

Income based JSA can be paid to top up contribution based JSA, housing and council tax benefits and health benefits can all be claimed as well as contibution based JSA depending on your savings, income and mortgage. However in your case I doubt it. (unless you're 60+)

When your entilement ends you can break your claim and reclaim contribution based JSA again in the new benefit year 2011 if you satisfy the conditions for Apr 2008 - Apr 2010.

tomerke

from my little experience it basically seems that income JSA qualifies you for a lot of things.

Ok does having wealth abroad count as savings? Anyone know for sure?

Secondly what if someone was to say pay down their mortgage to purposely reduce their savings! I know for a fact that intangible equity in a property doesnt count as savings right?? So isn't this a loophole for people to artifically reduce savings to qualify for more benefits? And ofcourse is not illegal but perhaps not so "nice" ??

thanks..

McKneff

On another thread you are asking about the government paying youre mortgage if you have 10K to 14K in savings.

You really need to clarify how much savings you have otherwise how do you expect people to help you

fresian_cow

Not sure if this helps but if you do apply for income based JSA, the part of the claim form asking about breakdown of savings asks about money in this country and abroad. If you have any savings abroad you have to declare them.

tomerke

well basically I have 10k to 14k of savings..and 25k put in my mortgage here which I am planning to take out and send abroad..Clear now?