Are we unlikely to get any benifits?

[cassa333]

Hi,

Like a lot of people we thought we were doing the right thing by saving and planning for our future and retirement.

We managed to save some money, have only a 30% morgage on our house and even invested in a btl.

This hasn't come easy and we have worked bl@@dy hard to get it but with the economic climate as it is we are looking at redundancy square in the face.

On the face of it we are set but when the time comes the redundancy will be the national minimum for having worked for the same company for 22 yrs. Because of the savings we have and the btl (which pays for itself and not a profit on rent) we are unlikely to get any benifits.

I realy do wonder if we wouldn't have been better off perhaps spending it when we got it, not saved and just frittered it away.

Having 5yr old twins I do worry how we will manage. If it were possible I would sell the btl but at the moment it would sell at a loss. So no point.

Anyway after all the waffle are we unlikely to get any benifits do you think?

[Buenchico]

There are two types of Jobseeker's Allowance. Contribution-based JSA is not means tested. Income-based JSA is. Anyone who's been regularly paying employee's National Insurance contributions for the past few years should be entitled to receive contribution-based JSA for up to 6 months. (Thereafter anyone without savings of over �6000 can get full income-based JSA. Those with savings of between �6000 and �16000 will get reduced I-B JSA. Those with savings above �16000 do not receive I-B JSA).

So you will probably get contribution-based JSA for up to 6 months.

http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/BenefitsTaxCreditsAndOtherSupport/Employedor lookingforwork/DG_10018757

Chris

[cassa333]

Thanks for that but cricky is that all we would get? JSA

If we were destitute or hadn't bothered saving I think we would be better off.

Oh well that's what you get, I suppose , if you try to make a descent life for yourself.

[Ethel]

You'll reap the benefits of your hard work and investments in a few years.

I am very glad indeed I'm not reliant on state pension and means tested benefits - I may not be 'rolling in it' but I don't worry about putting the heating on like some pensioners.

Be glad you have your savings - hopefully gainful employment will be found quickly.

[bednobs]

if you have been saving and planning for the future, then isnt this what you were expecting - to use savings and investments when times are harder? Isnt that what saving and planning is all about?

[cassa333]

It is but we were saving more for our retirement. when the oportuntiy for earning is less. (espesially for someone like me who can't spell lol)

But why bother if you can, apparently, live a relativly stress free life on benifits.

It's all about balance for me. The balance isn't weighted evenly. 'We' give more and get less in return.

I am fast becoming to believe that to be hardworing, honest and law abiding is for mugs.

[dasherman]

If your savings are in a pension then they should not assessed for benefits. If they are in ISA's,building society accounts,etc then they will be.

[sara3]

I take your point, cassa, but living on just benefits with no financial back up isn't an easy ride. but you should claim what you're entitled to, that's what it's there for.

and in my opinion, your work/saving ethics will be of greater benefit to your children than being part of the benefits culture.

give yourself a pat on the back.. you've done the right thing.

[themas]

You are right that the btl will be taken into account for benefits, but it will be the equity in it not the total value. If the mortgage is nearly as high as the value (which will be less now than it was until recently) then the equity may be low enough for you to qualify for Council Tax Benefit & income based JSA once the 6 months contribution based ends.

Do you get Child or Working Tax Credits? If not, you should claim - either now or when the redundancy occurs. If you total family income is under about �50K gross then you should have some entitlement while working, & it will very likely increase after redundancy. The rules are complex & you need to make sure you understand them & follow them to avoid the possibility of being overpaid. The btl will not become an issue as there is no income from it (from what you say, I assume the rent is all spent on the mortgage).

[bednobs]

i dont really understand why people think living off benefits is so stress free - if you have no savings, nothing to fall back on, no capacity to earn extra for treats i bet its not stress free

[cassa333]

Do they backdate cild tax credits?

[themas]

If you start a tax credit claim & your circumstances were the same in the period before you claimed, then it is backdated by up to 3 months. However, you should put a note on the claim form asking for this to be done.

[cassa333]

�month!! I should have done it 5 years ago then??

[dave2222]

is it possible you can pay your house off with your savings then you should be intitle to all benifits apart from help with the interest on your mortgage,im not sure about this it is just an idea.

[cassa333]

Dave, that is exactly what we are doing at the moment. We are allowed to overpay by �500 a month and started in Dec so not much has been paid off but we will keep going until we are near the end of our savings.

Our fixed rate morgage came to an end just when the rates were high and predicted to go even higher so we are on a very high rate at the moment.