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Having an ISA whilst on JSA/DLA

My brother in law has just been informed by the JobCentre that he isn't allowed to have an ISA whilst claiming JSA and DLA. Surely that isn't right??
Bank charges reclaimed: HSBC £1990

2007 Competition Challenge: Target £150
So far...£373.48 (MS Office 2007 Professional Edition) and a rizla tin

I smell roses, but all I hear is flies

Comments

  • Tombola591
    Tombola591 Posts: 100 Forumite
    DLA isn't means tested (as far as I'm aware) so the ISA shouldn't make any difference. The same for contribution based JSA.

    If he's claiming income based JSA he can have savings (including ISA) up to £16,000 and still be entitled to some JSA.

    Savings above a certain limit (I think it's £6,000) will be taken into account and he will receive a reduced amount of JSA. I'm not sure exactly how much is taken off but I'm sure someone else who knows more than me will come along soon with more info.
  • AdamB
    AdamB Posts: 133 Forumite
    It is income based JSA he is on. He has crept above the £6k a couple of times and has had to pay back the extra payments received, but he has been told that he is not allowed to have an ISA at all. I feel a phone call coming on to the local JCP
    Bank charges reclaimed: HSBC £1990

    2007 Competition Challenge: Target £150
    So far...£373.48 (MS Office 2007 Professional Edition) and a rizla tin

    I smell roses, but all I hear is flies
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    AdamB wrote: »
    It is income based JSA he is on. He has crept above the £6k a couple of times and has had to pay back the extra payments received, but he has been told that he is not allowed to have an ISA at all. I feel a phone call coming on to the local JCP

    This is flat-out wrong.
    As long as the ISA is within the capital limits, it's not a problem.
    Or to be more explicit - as long as the ISA - and any other capital he may have excluding things like house he lives in and personal posessions add up to less than the capital limits - it's not a problem.

    Debts do not (usually) count - you can't add up debt and capital and say you have no savings.

    Usually = unless the bank has a right of offset where they can reclaim the debt at any time, and the debt and the credit are with the same bank.
    Check your terms and conditions.
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