Income based JSA affected by Offset savings

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Ryco
Ryco Posts: 12 Forumite
in Redundancy & redundancy planning
Hi,

If after 6 months on contrubution based JSA I understand I move to a income based means tested JSA.

I have some savings over 16k in a offset mortgage but it's not really savings as it is reducing by inrtest and thus my debt.

Would I not get the income based JSA becuase of that? Do they look at offeset savings in that way?

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  • scope
    scope Posts: 764 Forumite
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    My guess is that Offset saving will still be classified as Savings, because at the end of the day it is just that..The fact that you use it to reduce your mortgage doesnt matter. Somebody please correct me if I am wrong.
  • silvercar
    silvercar Posts: 46,960 Ambassador
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    It may depend on how your lender holds your offset savings. If they are held in an account separate to your mortgage then they look suspiciously like savings. If they just mean that your mortgage account has a lower negative balance then it would be harder for them to be classed as pure savings.

    Bit of a grey area.
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  • scrooge2008
    scrooge2008 Posts: 1,369 Forumite
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    I wouldn't have thought they would be classified as savings, because HMRC doesn't view them as taxable, whereas money in a saving's account usually is.

    Interesting question though. I've wondered about this too, but never got a straight answer.
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  • Sprintblue
    Sprintblue Posts: 126 Forumite
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    Caution,

    It might be worth moving the funds and getting to JSA IB earlier ...

    There are a number of gotchas if you have not been on JSA IB long enough.

    Don't wait to the six month point and then switch .. I did and I got burnt ..
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