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JSA- include debt in savings declaration?

Hi,
Can anyone tell me whether the £16,000 savings limit for a JSA application includes household debt?
Many thanks in advance.

Comments

  • BorisThomson
    BorisThomson Posts: 1,721 Forumite
    1,000 Posts Combo Breaker
    No, it does not.
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    Not usually.

    If you have savings and debt, use the savings to clear the debt before you apply.
  • pmlindyloo
    pmlindyloo Posts: 13,104 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Not usually.

    If you have savings and debt, use the savings to clear the debt before you apply.

    Not a good idea. This may be counted as deprivation of capital.
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    pmlindyloo wrote: »
    Not a good idea. This may be counted as deprivation of capital.

    Definitely likely if they’re already in a situation of claiming the benefit, though perhaps not if it’s simply a ‘threat of redundancy’

    Either way either way they could end up with little money either through depri rules or capital rules. I’d prefer to not have to worry about debt payments in that situation but that could just be me.

    Also it depends on what the ratio is we’re talking about. Are we talking 10k debt and 5k savings or 20k debt and 15k savings? I never think straight on these things as I can’t get my head round having both!
  • pmlindyloo
    pmlindyloo Posts: 13,104 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Definitely likely if they’re already in a situation of claiming the benefit, though perhaps not if it’s simply a ‘threat of redundancy’

    Either way either way they could end up with little money either through depri rules or capital rules. I’d prefer to not have to worry about debt payments in that situation but that could just be me.

    Also it depends on what the ratio is we’re talking about. Are we talking 10k debt and 5k savings or 20k debt and 15k savings? I never think straight on these things as I can’t get my head round having both!

    And of course it depends whether the claimant is entitled to contribution based JSA which is not subject to savings/capital rules!
  • ANV
    ANV Posts: 2 Newbie
    Many thanks all. I’m considering appling for JSA tho it looks like a no-no from your responses. The debt is 10k and the savings are 18k, but it’s tricky as the savings are my partner’s and she is about to apply for indefinite leave to remain so wants to keep her bank balance looking as good as possible. I’ll look into contribution based JSA. Thanks again.
  • Ames
    Ames Posts: 18,459 Forumite
    If you're in a universal credit area then you'd have to apply for that rather than JSA and AIUI, UC does take debt into account.
    Unless I say otherwise 'you' means the general you not you specifically.
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