Jsa and savings help please.

paddedjohn

My Daughter is 20 yrs old and will be going to uni in September, she got finished up in her last job in December '10 and has been doing a little agency work here and there when she can get it and living off savings.

She has been told by friends and family that she needs to sign on for JSA so that she can get her NI contributions paid and entitlement to free prescriptions.

I know she wont be entitled to any money as she has savings but is it really worth her signing on to get her stamp paid?

paddedjohn

Anyone please?

dmg24

She will not get free prescriptions if she signs on.

For the sake of a few months I don't think I would sign on - she has plenty of time to make up any shortfall once she has graduated. Having said that, who knows what the pension requirements will be in fifty years time, or if there will even be one!

paddedjohn

Thanks for the reply, i suppose 14 weeks ni conts wont really matter in the long term.

paddedjohn

Quick update, my daughter has been into the jobcentre today and been told she is entitled to jsa, she has told them about her savings and they said it would be ok.

Does anyone know if the jsa can change their mind at a later date and make her pay the cash back? I thought they wouldnt give her anything because of her savings.

MX5huggy

They can't change their minds, but they could find that your daughter has not declared correctly.

There are 2 types of JSA Contribution based where saving don't matter at all but she would have had to have been working and paying NI in tax years 08-09 & 09-10.

And Income based where savings over £6000 start reducing the entitlement till £16000 when you £0.

The only other thing is why did she leave the job in Dec? they could sanction her if she resigned or was sacked. But they would only stop the money not claim it back.

paddedjohn

She took statements of her isa's and other accounts and the lady took copies and said all was ok, she has over the limit and told them this but still ok according to them. She only wanted to sign because she was told about her ni but i dont think she is entitled and am worried they may chase her in the future.

Mojisola

paddedjohn wrote: »

Thanks for the reply, i suppose 14 weeks ni conts wont really matter in the long term.

There's no point getting the NI contributions for those weeks unless she's planning to pay voluntary contributions for the other 38 weeks of that tax year. Only complete years count towards the pension.