JSA, Housing Benefit entitlement and savings

shinkansen1966

I rent my flat. I have bank savings which take me over the entitlement to housing benefit and income based job seekers allowance (JSA). Over the last 2 years, I've used up 4 months of my 6 month max entitlement to contribution based JSA. In a few weeks' time, I'll be unemployed again. The employment market indicates that fixed term contracts and general uncertainly are possible.

So....

I'm thinking of making contributions into my pension scheme so as to reduce my regular bank savings to a point where I'd then be entitled to housing benefit and income based JSA. Not just for this, but future periods of uemployment. I'm in my mid 40s, so I would not see any pension until I'm at least 55 (?). But it would be mean that everytime I'm on the dole, I'd get my (most of my) rent paid and JSA.

Plus points:
- approx £165 pw (JSA/HB) everytime I'm on the dole
- JSA gives me additional benefits like dentist, glasses, precriptions

Negative points-
- kiss goodbye to a chunk of savings for at least 10 years
- living on much reduced capital (between £6k and £16k)
- would have to sign on everytime I'm on the dole

Because at the moment, everytime I'll end up on the dole, I get nothing: no JSA and nothing for the rent. So when I work have to set a side savings to cover future period of unemployment.

Think this is a toughie....

I am looking for work. It's not like I want to live off the state. £165 of housing benefit and JSA is hardly anything. But it would better than the nothing I'd currently get.

HappyMJ

Get ready to be jumped on for claiming when you have the money. You seem to have the idea but contributing to a pension just before you sign on will not work. You can increase your pension contributions to 100% of your income (except for the tax free bit of about £7,500 per year) and live off your savings until they are below the limit.

How much over the 16k limit are you? Are all your bills up to date and prepaid for the next few months? Offer to renew the tenancy and pay the next 6 months rent in advance. That'll put £2,600 or so out of the calculation

shinkansen1966

HappyMJ wrote: »

Get ready to be jumped on for claiming when you have the money. You seem to have the idea but contributing to a pension just before you sign on will not work.

Thanks for your helpful advice.

I thought this might be a possibility. Because it looks like you are deliberately making yourself poorer so you can get benefits.

I'm up to date with bills and have no debt. My saving are at least double the £16k limit for benefits.

fluffymovie

I would view this as deprivation of capital and wouldn't pay an HB claim in these circumstances.

My view would be that you had this capital all the time, knew it meant no HB so chose that time to claim.

If a member of my assessment staff had such a claim, I would expect that id take it to an appeal.

Sorry but best scenario would be to use some of the capital to pay your rent with, perhaps a year in advance? This would buy you time to find work and should you legitimately come below the 16,000 limit, I wouldn't view paying your rent as deprivation. Some landlords might even be willing to accept a reduced level if rent in exchange fir 12 months in advance