Redundancy benefits

Bally48

I am due to be made redundant soon.  I understand to claim benefits I would have to have less than £16K in savings.  Unfortunately this has been bad timing for me as I have recently lifted £15,000 from my pension to go towards buying a property with my partner.  I am a Council tenant and for the last 3 years have been living next to a challenging neighbour with Police involvement due to their behaviour.  I have tried everything to get the Council to move me including getting my MSP involved and now realise the only way out of the situation is to buy.  So the redundancy couldn’t have come at a worse time as I will probably now not be eligible for any Government benefits due to the pension money I have in my bank account along with a small other sum I have which takes me over the £16K threshold and so I will need to use the £16K to live off.   I will be declaring the pension money to HMRC but wondered if the Benefits Agency are likely to be unsympathetic to my situation and expect me to use the money to live off and not to use towards buying a property.  Any information is appreciated. Thanks. 

TadleyBaggie

Not sure that is true, when I was made redundant I had way more in savings than that. Contributions based JSA doesn’t take any heed of your financial situation. 

peteuk

Your situation will not come into it.  HMRC will not be interested. 

Yes, it’s tough but you have over £16K so therefore not entitled to means tested benefits. You could claim new Job Seekers allowance. 

Even if you were given UC, with no “income” as such other than benefits you would need to rearrange a mortgage, pay for up keep of the house etc etc. 

Do you have debt you could pay off?

Bally48

I have already paid off credit card debt.  I'm assuming once I've used some of my savings bringing me below the £16K threshold I will then be entitled to UC but probably at a reduced level.  

Rubyroobs

Bally48 said:

I have already paid off credit card debt.  I'm assuming once I've used some of my savings bringing me below the £16K threshold I will then be entitled to UC but probably at a reduced level.  

Yes but then you would have bought the house and be living with your partner surely. In this case it would need to be a joint Universal credit claim and unless you have kids you may not qualify based on your partner's earnings which would be taken into account.

NedS

Bally48 said:

I have already paid off credit card debt.  I'm assuming once I've used some of my savings bringing me below the £16K threshold I will then be entitled to UC but probably at a reduced level.  

That is correct. Once your savings drop below £16k you can make a claim for UC, but the amount of UC will be reduced for any capital over £6k and up to £16k (I think it reduces by £4.35/month for each £250 or part thereof over £6k up to the £16k limit).

As suggested above, as you have been working, you will be eligible to claim New Style JSA immediately as this is not dependant upon savings or capital, only on having made sufficient NI contributions from employment in the last two qualifying years.

Bally48

Great thanks everyone.