What counts as savings for benefits

SkyandSun

Hi all,

I am potentially about to be unemployed for the first time in a long while. I am looking at benefits and what I could claim.

I am looking at council tax benefit in particular (not going to claim JSA at the moment for a number of reasons), and to be eligable you have to have household savings of less than £16,000. This seems to be pretty standard for most benefits. This means things like savings, capital and investments.

My savings are less than this, however I do have a private pension that I have been saving up over the years, which currently stands at £17,000 in capital. I cannot tell whether this is something I have to include in my 'household savings' - i.e. is it something I am expected to use and draw from to cover me in a period of no or low income, or is it something that is seen as exempt because it is savings for retirement. Currently I am 31 yrs old. I can see if I was pensionable age, INCOME from the pension would count towards household INCOME, but I am not drawing anything from the pension for obvious reasons.

I have called JSA, CAB and the local council, all of whom haven't given me a straight answer.

Thanks a lot,

bloolagoon

No pensions are not counted, if in a pension scheme as you cannot withdraw. Money in savings earmarked for a pension would be.

SkyandSun

Thanks, this makes sense - so I can safely not declare the pension on the forms?

Dunroamin

If you can use and draw from it as you suggest, you should declare it and it will affect benefits, it's only if it's not available to you that it's ignored.

bloolagoon

It depends on how you determine a pension. I cannot remove funds until I reach a certain age, no access.

If you can access money and its not a true pension, rather a savings vehicle for pension age, you declare it.

Mojisola

SkyandSun wrote: »

I am potentially about to be unemployed for the first time in a long while. I am looking at benefits and what I could claim.

I am looking at council tax benefit in particular (not going to claim JSA at the moment for a number of reasons), and to be eligable you have to have household savings of less than £16,000. This seems to be pretty standard for most benefits. This means things like savings, capital and investments.

My savings are less than this, however I do have a private pension that I have been saving up over the years, which currently stands at £17,000 in capital. I cannot tell whether this is something I have to include in my 'household savings' - i.e. is it something I am expected to use and draw from to cover me in a period of no or low income, or is it something that is seen as exempt because it is savings for retirement. Currently I am 31 yrs old. I can see if I was pensionable age, INCOME from the pension would count towards household INCOME, but I am not drawing anything from the pension for obvious reasons.

I have called JSA, CAB and the local council, all of whom haven't given me a straight answer.

If you've been in regular employment and paying NI, you can claim contributions based JSA for six months. It seems strange to turn down that money.

Means tested benefits are affected once you have savings of £6000. There is a sliding scale between £6k and £16k.

As you're only 31 you can't access your private pension. The money tied up in a pension scheme does not count as savings.

I'm very surprised that the advisors couldn't give you a straightforward answer to that.

SkyandSun

Thanks - the reason that I'm not looking at JSA is because I am not going to be heavily looking for a job for a month or two at least - I am applying, but I am being picky with where I apply and wouldn't be meeting the 'jobseekers agreement' of 3 jobs a week or whatever they would say. At the moment I am applying for a job every one or two weeks. Maybe I am being too literal about things?

HappyMJ

SkyandSun wrote: »

Thanks - the reason that I'm not looking at JSA is because I am not going to be heavily looking for a job for a month or two at least - I am applying, but I am being picky with where I apply and wouldn't be meeting the 'jobseekers agreement' of 3 jobs a week or whatever they would say. At the moment I am applying for a job every one or two weeks. Maybe I am being too literal about things?

You can be picky about what job you apply for in the first 3 months. It's usually to take 3 steps each week to find work which isn't much. That could be looking at a job site online or reading the job ad's in the local paper or asking an employer if they have a vacancy. You don't necessarily need to apply.

SkyandSun

HappyMJ wrote: »

You can be picky about what job you apply for in the first 3 months. It's usually to take 3 steps each week to find work which isn't much. That could be looking at a job site online or reading the job ad's in the local paper or asking an employer if they have a vacancy. You don't necessarily need to apply.

Oh, that's different then! I get about ten job alerts in my email inbox each day, which I take time to look through, so presumably that counts as plenty of steps each week. I just am picky about what I apply for as I want it to be a job I will feel fulfilled in for the next few years. I thought the agreement was something like, apply for 3 jobs a week, spend 6 hrs a day looking for work, etc etc. Which I am not doing, I am taking the time to have a break as well after a nasty end to my last employment (I nearly became unwell).

The other thing is I handed in my notice - but I had good reason to, I believe, so don't imagine I would have sanctions imposed for too long. Can I claim contribution-based JSA regardless of whether I made myself 'intentionally unemployed'? (as I have been in full time employment paying NI etc for over two years_

Mojisola

SkyandSun wrote: »

The other thing is I handed in my notice - but I had good reason to, I believe, so don't imagine I would have sanctions imposed for too long.

You'd have to discuss that with the advisors and see whether they agree with your reasons.

HappyMJ

SkyandSun wrote: »

Oh, that's different then! I get about ten job alerts in my email inbox each day, which I take time to look through, so presumably that counts as plenty of steps each week. I just am picky about what I apply for as I want it to be a job I will feel fulfilled in for the next few years. I thought the agreement was something like, apply for 3 jobs a week, spend 6 hrs a day looking for work, etc etc. Which I am not doing, I am taking the time to have a break as well after a nasty end to my last employment (I nearly became unwell).

The other thing is I handed in my notice - but I had good reason to, I believe, so don't imagine I would have sanctions imposed for too long. Can I claim contribution-based JSA regardless of whether I made myself 'intentionally unemployed'? (as I have been in full time employment paying NI etc for over two years_

Assuming you are single....

You can self sanction yourself for the first 26 weeks and then claim contributions based JSA for another 26 weeks after that if you are looking to take a complete break from work for a bit.

To claim HB and CTB you need be able to prove how you are living on no income. Having some cash savings (only about £2,000) to prove to the council you can afford to live without the £71 a week from JSA would be OK. You can then earn up to £76 a week and it will not affect your HB or CTB payment so you might want to consider some sort of part time work if that appeals to you.

After the 26 weeks on contributions based JSA you can go onto income based JSA which will continue to pay you £71 (or whatever the rate will be by then) if you qualify.