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JSA Advice.....

edited 30 November -1 at 1:00AM in Old Threads
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gav23welshgav23welsh Forumite
14 posts
edited 30 November -1 at 1:00AM in Old Threads
Hi Guys, I was made redundant just over 6 months ago. And the pay out I received was used to pay off various debts. I've been claiming JSA National Insurance based for the last 6 months, and I've now just applied for JSA income based. The bit where I'm in an awkward position was the debts I had to pay off with my redundancy was a mixture of gambling debts and loans sharks, I also had to pay a friend back 4k that he owed me. I've explained to JSA where I've paid the money out, but I cant give them any receipts etc...because as you can imagine door to door loan sharks dont work like that it's either pay up or els. I've provided JSA with 6 months of bank statements lisiting all my transactions, if anyone could offer some advice I'd be greatful.

Thanks Gav

Replies

  • pmlindyloopmlindyloo Forumite
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    Deprivation of capital is a thorny issue and you could google and find out some more information.

    The basic principle is if they came to the conclusion that you paid off debts in order to claim benefits then they could treat you as still having the redundancy pay and refuse the income based JSA.

    As regards debts the usual information is that if they did not have to be paid back in full but could have been paid back in agreed installments then this may be counted as deprivation of capital. It could be argued that the debts from the loan sharks might full under the category of having to be paid back because of the consequences of not doing so. (extortinate interest rates/threats of being taken to court)

    The repayment of the debt to your friend may not be so easy as it could be argued that he/she would have had to accept a repayment plan.

    To repeat what I have already said it has to be proved that you did this to claim benefits.

    You do not say how much you received in redundancy money. Some of it could reasonably used for living expenses whilst you were receiving your contribution based JSA.

    Did you pay back the money as soon as you were made redundant? If you did then it could be argued that you expected to be employed soon and did not anticipate that you would need benefits.

    Sorry, I can't be more helpful. In the end a decision will be made based on their understanding of the situation. Different authorities seem to view deprivation of capital in different ways - some are very harsh and some are more relaxed.

    Wishing you the best of luck.
  • Hi, there. Thanks for the reply, I thought it was a thorny issue. Basically the payment I received was 8k. And i had to pay off the loan shark because as soon as they found out I had a redundancy payment they demanded all they money back, in a nut shell they made it quite clear what would happen if I didn't pay the money back in full and carried on paying them in installments. Not nice I know, but I suppose it's my fault to have lent the money in the first place, but I was desperate for cash when my partner left me with loads of debts to my name but put myself worse off in the long run.

    And I had to repay my friend back the money that he lent me, because he decided because both his parents past-away 12 months ago he was going to travel abroad in the hope of finding work and to start off fresh with no painful reminders.

    I've been claiming Job Seekers National Insurance Based for the past 6 months, and tried to keep my compensation payment quiet from the loan sharks in hope that my money would last me until I found a new job. But it's so tough to find work it's unreal. My trade is a Graphic Designer and Web design, which there is meant to be loads of demand for but it seems impossible to find any work, I spend day and night employing for work and sending out my cv.

    I was devastated when I lost my job, I wanted to keep work to pay my debts off as it's my responsibilty. But it's all turned out to be a horrible mess. I have explained to JSA that my friend has gone abroad, and provided them with his email address so they can contact him if needs be. But it's the Loan Sharks that worry me about proving, their not the kind of people that provide reciepts.

    If anyone els could offer anything more to my suitation I would be grateful.

    Thanks Gav
  • Firstly the capital rules for JSA mean this - for every £250 (of part of £250) of capital over £6000 you have DWP will reduce income based JSA by £1 per week. So if you had £8000 in total income based JSA would be reduced by £8 per week. This is the rule that applies up to £16000. If you have £16000 or more you can't get any JSA.

    Second- if you have spent some capital in the last few months they will decide if you 'deprived' yourself of it or not (ie spent it to get more JSA). If they decide you did 'deprive' yourself of it they will pretend you still have it and then apply the rules above.

    As pmlindyloo says they will only decide this if they think you spent it to stop yourself losing some or all of your income based JSA.

    How they decide is here (look for Deprivation para 29805):
    http://www.dwp.gov.uk/docs/dmgch29.pdf
  • Hi guys, thanks for all your inputs. This site is brill and it's nice to see so many people willing to give advice, so a big thanks for both of you responding. I think I'll basically have to just wait and see what JSA decide. hopeful they will see that I'm genuine, and I had to pay the money out because I had no option because most likely I would have suffered a beating from the loan shark. Since I've been on JSA I've been applying for on adverage of 17 jobs a week, so I really am trying my hardest to find work, so hopeful they will see that I'm not trying to abuse the benifits system. I really do feel for those out there in the UK that's trying to find work and can't.

    But serious Thanks guys for responding. And if anyone els wants to respond I'll be greatful for all opinions and input.

    Thanks Gav
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