Definition of "Capital" in benefits calculators

kingg

Dear all,

I have been made redundant last week. Started my career in 1999, worked continuosly till last week.

Shocked, gutted, shattered. I am a 44 year old man, and I cried.
I feel worthless now.

But I need to buckle up for the sake of my kids.
As you can see, I have never been to a benefits center.

I have some small savings, and a mortgage on the house. I can manage for a few months on savings before I find another job.

My question is this: Please can someone define and clarify the word "Capital" in the benefits calculator?

Me and my wife do not have any other house apart from what we own (pay mortgage for).
Is this house considered a "capital" as per the definition of the benefit calculations?

Thanks.

missbiggles1

House no - savings (if over £6k ) yes.

Sambella

Savings and investments = capital

You need to be claiming contribution based Job Seekers Allowance. You will get this for 26 weeks. Ensure it is backdated to date of redundancy. Capital is disregarded for this benefit.

After 26 weeks you will be on big standard job seekers allowance where capital over £6k makes a difference to it

You should probably also be entitled to claim other benefits such as child tax credit.

Ames

It would be useful to know what benefits you're talking about as the rules for jobseekers allowance are different to those for tax credits.

For the purposes of means tested benefits savings above £16k stop them altogether, between £6k and £16k they reduce benefits by £1 per £250, and below £6k don't affect them.

The house you live in is disregarded and doesn't affect anything.

If you get a redundancy payment be careful what you spend it on as you could be treated as still having the money if they deem it spent purely to reduce savings so that you qualify for benefits.

Regardless of savings you should be able to claim contributions based jobseekers for six months if you've paid NI contributions for the last two years.

elsien

My sympathy - I was made redundant on my 50th birthday from a longstanding job so I know how you feel. There is life after redundancy, however hard it feels right now.

If you sign on, when you discuss your jobseekers agreement tell them you want a time period where you only need to apply for equivalent roles. Otherwise you'll be expected to apply for anything and everything from day one.

xylophone

Shocked, gutted, shattered. I am a 44 year old man, and I cried.
I feel worthless now.

It is understandable that you feel distressed but you are not worthless.

http://www.express.co.uk/finance/retirement/413388/You-can-work-it-out-when-redundancy-hits-you-in-middle-age

It is simply that the job you did is no longer available.

However, you speak of a career so there will be other openings.

If not, would you consider another career/retraining?

You should claim job seekers allowance as soon as possible.

https://www.gov.uk/jobseekers-allowance/overview

Alice_Holt

Info on contribution-based JSa here:
https://www.gov.uk/jobseekers-allowance/overview

Info on Child Tax Credits here:
https://www.gov.uk/child-tax-credit/overview

Is your wife working?
If so might you qualify for Working Tax Credits?

You may be entitled to help with council tax (depending on the level of your savings & income of your wife):
https://www.gov.uk/apply-council-tax-reduction
Your LA will have more info.

Benefit calculators may be of use. Online calculators:
https://benefits-calculator.turn2us.org.uk/AboutYou
http://www.entitledto.co.uk/benefits-calculator/startcalc.aspx
or visit your local CAB with all your income / savings / council tax details and they can do a benefit check.

Would you mortgage provider reduce payment levels temporarily?

kingg

Many thanks to all who have replied.
Many thanks for your kind words and advice.

I am an engineer by profession. I think I will contact my professional registration body for some additional advice and networking opportunities. Yes. I am willing to retrain.

My wife works as a Teaching assistant. Its a full time job.

I think everyone has to start somewhere...so this is gonna be an experience for me.

elsien

I don't know if you have mortgage protection insurance, but mine put on a day to go through how to most effectively find work - what CVs should look like nowadays (mine was ancient and it showed in the layout), how recruitment agencies work, etc. Far more helpful than anything the job centre did.

kingg

elsien wrote: »

I don't know if you have mortgage protection insurance, but mine put on a day to go through how to most effectively find work - what CVs should look like nowadays (mine was ancient and it showed in the layout), how recruitment agencies work, etc. Far more helpful than anything the no centre did.

Hi Elsien,

Thanks for your kind message. It is good to know that others have gone through this, and have come out fine.

Money is one thing, but its the loss of status which hurts me a lot.

As long as I was employed, I had generous insurance ( health,life, private etc). Some of my colleagues adviced me against getting an insurance for mortgage, and redundancy insurance etc.. So I did not bother much.

Besides, I was seconded to what was supposed to be more stable setup within the organisation. So I did not even bother getting any insurance. I assumed, things will go on smoothly as usual.

This redundancy just shook me up from my slumber.

Since you have mentioned about brushing off the CV to the latest layout, I should mention that I am being offered an "outplacement" service. I was told these guys help me find work. They have adviced me to get a copy of my current CV for review. So let me see how it goes. If you dont mind me asking, were you an engineer as well?

elsien

No, I was a care manager. I took the opportunity to get out of management and into a slightly different field. Working on the basis that as I'd already lost my job security, generous holiday and sick pay allowance etc, I'd got nothing to lose. If I didn't like it I could move on again any time I felt like it. Tbh, the job had got a bit stale but was too comfortable to make the move. Redundancy actually turned out to be the boot up the backside I needed. Although I wouldn't have said that if you'd asked me at the time, I was also in mourning.

Another tip I was given if you're registering with recruitment agencies online. Take the CV down and repost it every week - you don't need to change it. They use software that scrapes the newer CVs first, as the older ones might be where people have got jobs and not got round to taking them down.
Also, get used to recruiters contacting you about a potential job then getting a deathly silence almost immediately. It's not personal, the old courtesies no longer seem to apply.
Hope you get something sorted soon.