What counts as savings?

Leeroy909

Hi all, I have a couple of questions about applying for JSA. Firstly, what exactly counts as savings? I do have money invested in various places that may make me ineligible for JSA. It's mostly in P2P lending platforms e.g. Funding Circle, so I don't have access to the money until it's paid back by the debtor. Would this count towards my savings?

Secondly, I'm currently in a situation where receiving mail isn't very reliable, will this be a problem for JSA or is it all paperless?

Thanks!

Dox

Not sure what type of JSA you are planning to apply for. Have you read: https://www.gov.uk/jobseekers-allowance/eligibility?step-by-step-nav=e7b3ea75-05d5-4341-b27a-be3b767b1e3f

If you still have queries, the JSA Helpline is your best bet: 0800 169 0310

[Deleted User]

Depending on NI contributions you may have to apply for UC instead.

You can use a c/o (care of) address. You will receive letters.

Neil_Jones

If it's contribution JSA you can be a millionaire and claim it as it's based on previous two years of NI contributions - if you've paid them and you can satisfy the other criteria you can claim it.

For income based JSA the basic rule is that if you have savings above the upper savings limit, which is currently £16,000, you will not be eligible to receive any benefit. If you have savings below the lower savings limit, currently £6000, your benefits will be unaffected.)

For savings in between the two limits, your savings are assumed to yield a weekly “tariff income” of £1 for every £250 of savings. This equates to an assumed annual tariff income of approximately £50 for every £250 of savings, equivalent to an interest rate of 20%, which is clearly absurd and unattainable in the real world. Nonetheless, this is the basis the government uses for their calculations. The benefit payments you receive each week will be reduced by your assumed tariff income. So, if the lower limit is £6000, and you have £10,000 saved, £4000 of that will be counted. £4000 divided by 250 is 16, so you will get £16 less per week in benefits.

Savings include pretty much everything you can get in the marketplace - You should count as savings money that you can access relatively easily or financial products that can be sold on. The definition of savings for the means test in benefits includes:

cash;
money in bank or building society accounts, including current accounts that don’t pay interest;
money in a Tax Free Childcare account (enter 80% of value)
National Savings accounts and certificates;
income bonds;
stocks and shares;
property (other than your own home);
Premium Bonds;

Believe this includes P2P and ISAs too. In other words if it's got money in it and its in your name, it probably counts as savings.

Xbigman

Yes, money in P2P counts as savings. Almost the only thing that doesn't count (if in your name) is money in pensions. Even then paying a load of money into a pension just before making a claim is a bad idea.



Darren

Leeroy909

Thanks for your detailed responses guys, much appreciated!

TELLIT01

Income Based JSA no longer exists for new claimants (to the best of my knowledge), it would be a claim for UC. Otherwise the information from Neil Jones is accurate.