Job Seekers Allowance

Options
SCOYA
SCOYA Posts: 207 Forumite
First Anniversary Combo Breaker First Post
in Benefits & tax credits
I am currently receiving JSA (Contribution Based) which I've been advised will shortly end, and I've been told that I can re-apply for JSA (Income Based).

Can anyone tell me or give me an idea (before I start endless form filling) what they wish to know? i.e my partners income I'm certain, presumably savings (we both have ISA's. But also, I've recently received an inheritance, presumably they would take this into account?

Any advice would be much appreciated. Thanks.

Comments

  • lisyloo
    lisyloo Posts: 29,625 Forumite
    Name Dropper First Anniversary First Post
    Options
    Yes, you are thinking along the right lines.

    Any income or assets you have (savings, ISAs etc).
    Do you have any plans for your inheritance?
    e.g. could you reduce your mortgage with it?

    It is illegal to deliverately deprive yourself of assets with the intention of gaining benefits, but maybe you were considering paying down your mortgage anyway.

    I believe that there is a bit of an anomaly in the system whereby someone with a £100K mortgage and no savings is not treated in the same way as someone with a £150K mortgage and £50K of savings.

    But yes, if your inheritance is in a savings account then it will count against you.
  • System
    System Posts: 178,101 Community Admin
    Photogenic Name Dropper First Post
    Options
    So, is there advantage to be gained by having an offset mortage whilst on Income-related benefits?
  • lisyloo
    lisyloo Posts: 29,625 Forumite
    Name Dropper First Anniversary First Post
    Options
    So, is there advantage to be gained by having an offset mortage whilst on Income-related benefits?

    It depends how you use it.
    I believe that any money in your "savings" pot would be counted by the benefits people as savings.
    However if you move it to the mortgage pot then it would not be savings.

    This is a slightly dodgy area because as mentioned earlier it is illegal to "deliberately deprive" yourslef of asset to get benefits.
    There is no legal way of hiding money.

    What the benefits people count as "hiding" and what is legitimate I wouldn't like to say or to give any false impressions.

    I was suggesting that the original poster may have been planning to reduce the mortgage anyway (perhaps not) so that COULD be a legitimate use of the monet, but I don't know if the benefits people would see it that way.

    I believe the benefits might see a sudden decrease in assets prior to redundancy as dodgy.
    However careful management of your money over a period of years is fine.
  • Fran
    Fran Posts: 11,281 Forumite
    First Post First Anniversary Combo Breaker
    Options
    You have to consider how you will pay your mortgage while on JSA. Interest only is paid, after 6 months, to people on Income Support. This would eat into your savings in the event of you not getting further income.
    Torgwen.......... :) ...........
  • SCOYA
    SCOYA Posts: 207 Forumite
    First Anniversary Combo Breaker First Post
    Options
    Many thanks for your advice. Unfortunately I have penalities on my mortgage until June 2005, and we are managing, and we do have savings and for sure there are other people who are much worse off than us so I feel I probably won't continue with JSA once the contribution based payments cease.

    However, I have three interviews this week, ;D so hopefully I won't have to bother the Job Centre for too much longer.
  • Fran
    Fran Posts: 11,281 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Not if you get all three jobs! Good luck.
    Torgwen.......... :) ...........
  • System
    System Posts: 178,101 Community Admin
    Photogenic Name Dropper First Post
    Options
    Further info on mortgage help.
    the 26 week waiting period is usually for mortgages taken out before october 1995.

    Later than october 1995 and its 39 weeks.

    Then only interest is paid at the standard DWP rate and only for house purchase costs.

    The whole thing is complex and you would need to seek advice from CAB etc.

    The offset mortgage scenario is interesting as the rules for means tested benefits relate to deliberate deprivation of income and/or capital .

    The key word is deliberate.

    The DWP decision would have to show that you deliberately deprived yourself of income or capital so that you could get a benefit or more benefit had you not deprived yourself.

    Using savings to reduce debts to reduce costs would not in (my experience) be deliberate deprivation.
  • SCOYA
    SCOYA Posts: 207 Forumite
    First Anniversary Combo Breaker First Post
    Options
    Just a quick update, I now have confirmed a new job starting on 23 August. So have now signed off JSA (contribution based) as it had come to it's end, so have just received my final payment from the job centre. However, they've also given me an extra £100.00 which I've been advised by letter that this is a "Job Grant". Is this normal, as I wasn't aware that I would get this extra payment, just in case I'm not entitled wouldn't want to spend it. Thanks, Scoya.
  • Fran
    Fran Posts: 11,281 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Scoya,

    If you check here: JobcentrePlus
    it says that the Job Grant is payable to people who start work expected to last 5 weeks or more, but that they should have been on certain benefits for 52 weeks or more. If you don't come into the category I would give your Jobcentre a ring.

    P.S. Hope your new job goes well.
    Torgwen.......... :) ...........
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.6K Work, Benefits & Business
  • 608.6K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards