Whats counted as savings?

gadgeteer_2

Hi all

I'm really worried about my job at work. Nothing specific at the moment but things have been quiet and the pipeline for the company seems quiet.

I am fortunate enough to have some savings but trying to do some planning if heaven forbid the worst was to happen.

What do the DWP count as savings? I have some cash in various savings accounts so that's clear. But is money invested in stocks & shares counted? Reason is that i did this a while back and because of the current economic situation I have less than I originally put in. Obviously I'd rather leave that money invested until at least it rose.

I'm not saying I am trying to defraud anyone, just trying to make plans.

Also is redundancy money counted and would I be expected to live off this until I used it all?

Lastly, which of the benefits would be affected? Eg. Council tax, JSA, tax credits?

Thanks. This is not my area of expertise at all. I've always been lucky enough to work but not sure my luck will hold out through next year. I hope I am wrong.

rogerblack

In short - it's really simple.
Anything you have, or can apply to the courts to obtain the rights to, that you can sell.
There are some excluded items - for example your house and personal posessions, but all 'cash-like' instruments like stocks and shares that you can legally sell today, or sell the rights to sell at a future date to someone, count.

gadgeteer_2

Hmm, it is frustrating to think that as someone who's done the right thing by saving and avoiding debt, that my "reward" in my time of need is to be forced to live off my savings whilst someone who spent money like a fish would get money straight away.

Out of interest, does anyone know if this will be different under the upcoming universal credit thingy?

pauletruth

of course its not going to change, have a think for a moment you could have hundreds of thousands in shares, property ect(i know you can wish) why should the state fund you. they have a cut off after which you fund yourself. true its not very fair on the savers but life is not. no goverment is going to remove that cut off point sorry. i hope your job is safe by the way its no fun being on the dole.

Lady_gaga

they definately ask about stocks and shares when you apply for means tested benefits.

MrsManda

To add to the above. If you've been working full time for the last few years then it's likely you've paid enough National Insurance contributions to get contribution based Jobseekers Allowance. This means you can receive upto 6 months of JSA without your savings/assets being taken into consideration.

antrobus

gadgeteer wrote: »

.....What do the DWP count as savings?

See under 'What is Capital?'

www.dwp.gov.uk/docs/hbgm-bw1-assessment-of-capital.pdf

real1314

gadgeteer wrote: »

Hmm, it is frustrating to think that as someone who's done the right thing by saving and avoiding debt, that my "reward" in my time of need is to be forced to live off my savings whilst someone who spent money like a fish would get money straight away.

Out of interest, does anyone know if this will be different under the upcoming universal credit thingy?

I'm sure it would be more frustrating to earn as little as £160 a week and have to pay tax whilst someone with tens of thousands in the bank gets support from your tax payments.

Incidentally, do fish spend money? It's a new one on me! :cool:

zagfles

gadgeteer wrote: »

Hi all

I'm really worried about my job at work. Nothing specific at the moment but things have been quiet and the pipeline for the company seems quiet.

I am fortunate enough to have some savings but trying to do some planning if heaven forbid the worst was to happen.

What do the DWP count as savings? I have some cash in various savings accounts so that's clear. But is money invested in stocks & shares counted? Reason is that i did this a while back and because of the current economic situation I have less than I originally put in. Obviously I'd rather leave that money invested until at least it rose.

I'm not saying I am trying to defraud anyone, just trying to make plans.

Also is redundancy money counted and would I be expected to live off this until I used it all?

Lastly, which of the benefits would be affected? Eg. Council tax, JSA, tax credits?

Thanks. This is not my area of expertise at all. I've always been lucky enough to work but not sure my luck will hold out through next year. I hope I am wrong.

Tax credits aren't affected by any capital, though you need to declare the income from the capital ie interest/dividends if outside an ISA, but that won't have a big effect unless you have a vast fortune. Of course you won't get WTC if you're not working, and only CTC if you have children.

One thing to maybe think about if you have a mortgage is to pay it down, this is especially useful if you have a flexible mortgage as you can "take back" the overpayments should you need them. But beware of doing this just before getting made redundant as it could be seen as deprivation of capital. If you do it before having an inkling of redundancy you should be OK.

The UC will work in a similar way to means tested benefits ie capital will reduce your entitlement or disqualify you.

Like someone else said you should get contributory JSA for 6 months regardless of capital.

wazza

I believe gold and silver are classed as savings :-(

Pollycat

I'm not sure what they would treat as 'savings' in your case but when DWP calculate entitlement to Pension Credit they also include money in current accounts even if that money is used to pay bills.