Redundancy and Jobseekers

p.kane1981

Hi,

I'd like a little advice pleace.

I was made redundant the other week out of the blue, I have made a claim for jobseekers allowance and they are now asking if I recieved any redundancy payment and to see my bank statements.

I received a total of 10k as way of notice in lieu, I've moved this money into a savings account and will use it to pay my mortgage and bills while I look for work.

What are the implications for telling the benefits system I have this money?

I have no other savings or income protection.

Any help most appreciated.

princessdon

You tell them (and they will find out if you don't)

The impact depends on what type of JSA you are claiming

Do you have a partner who works?

p.kane1981

No, I'm single

princessdon

Ok - Income based JSA.

Savings over £6K will affect your benefits - mortgage help, council tax etc. They reduce the amount given. You will still get help but will be expected to use your redundancy pay to top it up. I

Put your details into the calculator to get your exact figure.

pmlindyloo

p.kane1981 wrote: »

Hi,

I'd like a little advice pleace.

I was made redundant the other week out of the blue, I have made a claim for jobseekers allowance and they are now asking if I recieved any redundancy payment and to see my bank statements.

I received a total of 10k as way of notice in lieu, I've moved this money into a savings account and will use it to pay my mortgage and bills while I look for work.

What are the implications for telling the benefits system I have this money?

I have no other savings or income protection.

Any help most appreciated.

This is standard.

When you claim JSA they will assess you to see if you are eligible for contribution based JSA (based on your NI contributions during the last couple of years). This is not means tested so any savings will not make any difference.

However, it only lasts 26 weeks.

If you were not eligible for contribution based JSA then they would assess you for income based JSA which is means tested. (takes into account all household income and savings)

If you are eligible for income based JSA then this automatically 'passports' you to full CTB and HB.

The reason they have to assess for both is because the contribution based JSA is always given if you are, in fact, entitled to both (ie. no other household income and no savings) but you will also be entitled to the 'passported' benefits.

Complicated isn't it?

In your case, you will be assessed first for contribution based JSA.

Then you will be assessed for income based JSA to see if you have any other entitlements.

If you have no other income and savings between £6000 and £16000 then you may well be entitled to some Council Tax benefit and Support for Mortgage (the latter after 13 weeks).

Hope this makes sense!:)