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Overpaid and claiming for JSA

Hi, I have a good friend that's left his last company, was overpaid for three months and as a result has now more then £6000 in savings. He has agreed to pay it back in installments over the next year and the company have admitted it was completely their fault. He's currently looking for work but reluctant to try for JSA as he reckons they will assume all savings will be taken into account including the overpayments. Please help me convince him its worth applying for benefits until he finds work and that they will take into account that the money isn't actually his?

Comments

  • If he has the money, why not just pay it back? Although it will not entirely cancel out his entitlement (and may not affect it at all), the JCP will not ignore the money if it is in his account.
  • LadyMissA
    LadyMissA Posts: 3,263 Forumite
    quinny wrote: »
    Hi, I have a good friend that's left his last company, was overpaid for three months and as a result has now more then £6000 in savings. He has agreed to pay it back in installments over the next year and the company have admitted it was completely their fault. He's currently looking for work but reluctant to try for JSA as he reckons they will assume all savings will be taken into account including the overpayments. Please help me convince him its worth applying for benefits until he finds work and that they will take into account that the money isn't actually his?
    If he was overpaid and as a result has over £6k in savings tell him to just pay it back. Easy.

    The Jobcentre will not care about overpayments as he has the money.
  • t0rt0ise
    t0rt0ise Posts: 4,669 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It depends how much other savings he has. The upper limit for savings is £16,000 so with less than that he would still get some JSA if otherwise entitled.
  • westv
    westv Posts: 6,606 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Your friend does realise that he might be entitled to 6 months contribution based JSA where no account is taken of any savings?
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