need help

caroleak123

i have saving that was left to me when my mum died three years ago its gone below 16000 now i know i can cliam jsa and money well be stopped because of my savings

but i need to know if i can get a computer for my son that is going to collage and what to do a design couse he needs a better computer then the one we have which keeps going fuuny and is over 10 years old will they cout this as me wasting money when i cliam


i don.t think they count the frist 6.000 of my saving from what i have been told on this website so can i put 6.000 in another account then so i don.t have to worry about what i spend it on os this allword


thanks

rogerblack

Separating money in different accounts doesn't matter, as far as the capital rules go. All your savings are treated together.

Reasonable expenses, like a new computer are quite allowable, even large ones.
If the computer isn't significantly more expensive than the recommended sort of computer to the course, it will be fine.

caroleak123

i thought the first 6.000 wasn.t counted have i get this wrong then

rogerblack

The first 6000 of your savings has no effect on your benefit for means tested benefits.
But, putting this in different accounts makes no difference.

As soon as your savings drop below 16K, you are eligable to JSA, or ... with 40 pounds/week knocked off.
(savings - 6000)/250 = amount that comes off. Claim this now, to avoid losing money.

You're in principle eligible for council tax benefit once your capital falls below 16K, but at 15999, to get any payment the council tax on your home would need to be 2K.
Once it hits 10K or so, CTB will start getting paid in a small way.

caroleak123

i have 14.000 left at the moment
can i get my kids stuff for xmas and birthdays

i have had this money for three years i have get some stuff for the house like a new washing mac
sofa stuff for my kids rooms

i also payed my credit cards but that was when i frist get the money
three years ago

the rest of the money i have been paying my rent council tax and gas and ele and food

we went on hoilday to clacton 2 times as well

is this all ok


thank

caroleak123

does this mean that they will count all the 14.000 i have left and stop me money from all of it.


also what happing when they have done that can i use the money for what i like then

rogerblack

All capital you have is counted, it doesn't matter how it's arranged.
If you have 14000 pounds, then for JSA purposes, you have 14-6 = 8K of non-disregarded capital.
This 8K is counted as producing income at the rate of 1 pound in every 250.
So, you're counted as having 24 pounds a week income, which reduces your JSA by 24 pounds.

You are expected to spend 'reasonably' - at that level of saving, a few hundred pounds of christmas stuff is probably reasonable, a few thousand isn't.
Similarly, an all-in month long holiday in the bahamas wouldn't be reasonable, but I don't think anyone would question Clacton.

Applying for JSA - or even not doing so, and trying really hard to get a job would seem to be your next step.

caroleak123

i don.t understand if the they don.t take any money of the first 6.000 of my saving and only count 8.000 and stop me 24 punds that i understand why can.t i put 6.000 in another account but tell them i have it
would i be allowed to do that and spend that 6.000 on what i like

BigAunty

The physical location of your capital is irrelevant. You can have it in one bank account or 10 bank accounts. The overall sum is the key feature (wherever it is) and you face reductions to any income related state benefits for a sum greater than 6k.

Upper savings limit

You cannot get benefit if your capital or savings (or you and your partner's capital or savings) are above an upper savings limit of £16,000.

Lower savings limit

Your benefit will be affected if your capital or savings (or you and your partner's capital or savings) are above a lower savings limit of £6,000.

Tariff income

If your capital is between the lower and upper limits, a ‘tariff income’ is assumed: one pound a week for every £250 (or part of £250) above the lower limit is included as your income.

For example, if you have capital of between £6,250.01 and £6,500, £2 a week is included as your income. Each time capital gets into the next block of £250 (even by as little as one penny) an additional £1 is included as income.