Can I Protect My Savings While on Benefits?

mrobsessed

Hi All,

I'm facing redundancy in the near future and am looking at making the most of any redundancy payments I receive.

I'm thinking of putting some money into an ISA or a fixed term savings account as an emergency fund. I believe that savings over 6k starts reducing benefit payments which, on a sliding scale, reach zero at 16K. But what precisely counts as 'savings' and can cash be legally put aside in a way that avoids these restrictions?

I've been told that the Benefits agency have the power to check on ANY account as all accounts are linked to an individuals National Insurance Number. Is this true?

What type of account can be checked and is there any type of account that is exempt? How do I protect my money from being counted as spendable savings by the benefits agency? Does the Government allow extra funds in certain situations or is it all classed as savings?

Any advice would be appreciated.
MrO

Dunroamin

If you've paid the appropriate 2 years' NICs you'll be able to claim contributions based JSA for up to 26 weeks. Anything above and beyond this is means tested and will be affected by any savings/capital etc.

Trying to avoid this will be fraud and could result in a conviction.

Nada666

The way to protect your savings is to accept the rubbish jobs that currently are plentiful whilst you wait and search for something more fitting.

McKneff

Exactly what Dunroamin says.

It is all classed as savings.

McKneff

In fairness a lot of jobs are not rubbish jobs, they just pay badly.

Imagine.

The cheif executive of a company goes on holiday for a week

The cleaner in his company goes away for the same week.

No prizes for guessing who would be missed first.

midnight_express

What you are proposing is fraud and is criminal offence and yes they can check all accounts. You would be amazed at what they can and do find out.

tomtom256

Take the p*ss springs to mind, surely a troll?

asdf1982

no theres no way, even if you were to transfer it to someone else they ould find out

why do you assume you definitely wont get a job by the time redundancy comes? its actually easier to get a job whilst you're in a job if you know what i mean so the best thing would be to try now to have one lined up. then also your redundancy money would just be an bonus

midnight_express

What benefits are you planning on claiming ?

McKneff

While your out of job, have a look at Saints and Scroungers on the telly at 11am.

Its amazing what the authorities can and do find out and what they have access to.

Good luck in finding a job by the way.

BigAunty

It isn't just 'savings', it is capital and I think this is why you are confused. Capital includes things like savings, premium bonds, shares, ISAs, equity in a second property and so on. It's basically anything that you could actually cash in and get your hands on.

Strategies for legitimately 'getting rid' of capital include probably include putting into a proper pension plan (do verify this, though) and spending it on things that aren't classed as deprivation of capital.

Google deprivation of capital to understand what the local council, HMRC and DWP look for to identify claimants who have intentionally reduced their capital in order to claim benefits.