redundancy, savings, benfits and mortgages

[mandimoo]

if i used a redundancy payoff to reduce my mortgage as soon as i got the money, what would the benefits people make of it? if i dont do it, i will have too much savings to be able to claim any benefits. nice problem i know, but i have worked all my life and gone without many things to get where i am now (i dont think ive ever owned a new piece of furniture!) and i really think i deserve to get a bit back now. also will they take my partners savings into account too?

[bednobs]

do you live with your partner? if so then, yes they will take his/her income nto account too. being on benefits is crap. If i was you, i'd look for another jb instead. If you have had an enhanced redundancy payout, you will have to wait longer to be able to claim anyway

[bednobs]

(no matter if youve spent it on your mortgage or thousands of lotto tickets)

[mandimoo]

ive already been looking quite hard for jobs without much success so far and i consider myself to be quite employable! termination date is looming and trying to get myself sorted out as best as possible.... but what i mean by 'what would the benefits people make of it'.... is ..... if i take us down to a level of savings so i can claim benefit, would the benefits people know about the lump sum payment? i suppose they ask you what you settlement you got dont they.... so then you would have to account for it..... sorry, thinking while typing (slow process)!..,.. any further comments gratefully received.......

[buildersmate]

The redundancy money is a compensation to help tide you over until you get yourself sorted out - so it is perfectly reasonable that you might have to use some it as living expenses in the meantime.
As you work at the moment, you will be entitled to contributions-based JSA whilst you hunt for alternative work - though not during any notice period that the redundancy money covers you for.

[bednobs]

it seems like it depends on how much you payment was:


To qualify for means tested benefits income, capital (which includes your redundancy payment but does not include your home) and savings must fall within the financial limits. You cannot claim Income-based Jobseeker�s Allowance, Income Support or Working Families� Tax Credits if you (and your partner) have savings above the upper limit of �8,000 (if you are aged over 60 the upper limit is �12,000). If you are claiming Housing Benefit, Council Tax Benefit or Disabled Person�s Tax Credits the upper limit is �16,000. Savings between �3,000 and the upper limit will affect the amount of benefit you will receive.
Volunteering for redundancy should NOT stop you receiving benefits (provided your redundancy payment does not take you over the financial limit for means tested benefits). However, a redundancy payment in excess of the statutory amount will be treated as earnings, and income-based JSA cannot be paid for the period covered by the payment after your employment ended

So they WILL take your payment into account, whether you have paid it into your mortgage or not

[Bushwhacker]

Hi madimoo,

As you say yourself, you have worked all your life and feel like you deserve something back, after a lifetime of paying taxes. Especially if your situation is due to the current recession that has been caused by the greed of others !!

In my experience it is those that who have made a lifetime out of claiming benefits who always seem to score.

So......... I suppose you could be "economical" with the truth.

How would the benefits agencies know how much savings you had ??

How could they find out how many bank accounts you had ??

It must be worth thinking about (altho' if you are anything like me - you would probably prefer to be honest - just so you can sleep at night).

I hope everything works out well for you.

[buildersmate]

Absolute tripe, as well as being an encouragement to commit fraud.

[bednobs]

eh bushwhacker? do you think you can just go and say "ive got no money" and they just say "here have some" without actually checking??

[themas]

Bednobs figures are out of date. For means tested benefits the lower limit is �6000 & the upper limit �16000.

They always look into what savings you (& partner) have & are bound to want to know how much redundancy you got & what you did with it. If you used it to pay down your mortgage in circumstances where you did not have a legal obligation to do so then they would treat you as still having the money.

[TCL-MUMPING]

If you are entitled to Jobseeker's Allowance (JSA) based on NI Contributions, savings are not taken into account. If claiming JSA (Income Based) or Income Support (IS) then savings and income are taken into account.

Money that has been spent on a mortgage or thousands of lottery tickets would be called deprivation of capital.

It should be obvious why spending money on lottery tickets is deprivation but the mortgage may not. It may seem that paying off the mortgage early makes sense from a financial point of view but it is a debt which need not be repaid immediately.

By paying all or some of it early, the money in the account has been reduced and that may mean JSA(IB) or IS becomes payable or paid at a higher rate than would otherwise be the case.

[cassa333]

In the case of redundancy if you knew it was happening and paid off your morgage (or loans) with savings you already had before your redundancy date would they still count that as money towards your beifits? or is it what you have in the bank on the date you are made redundant?

[mandimoo]

well said cassa, i think you summed up my query better than me!

[themas]

It would make no difference - you would still have paid off a debt which you had no immediate legal liability to pay, so it would be treated as deprivation.

[Pimpernel]

Hi,

If you can pay off part of your mortgage, definitely do it.
If you aren't a 'professional' benefit-scrounger, with credit cards, but someone who's worked for years and has some savings, then, getting benefits is really hard, even if you've lost your job through no fault of yours. I've been in the same situation as you, and I really felt I was penalised because I had saved part of my income instead of splurging on going out, going on holidays, gizmos etc.
One advice, don't dress 'poshly' when going to Jobcentreplus. I made that mistake (I was looking for work in the financial industry, and I eventually found a job!), so I dressed like for a job interview, with smart professional suit, trench, shoes and my, were they antagonised!
Good luck with your jobhunting!

[DrFilth]

when i became redundant and had to go to the job centre ,
i had to take proof of redundancy payment , wage slips, bank account statements, building society book , post office book .
you name it they wanted to see it , it had to be the original , photocopies are not accepted.
best of luck you will need it.


:::::::::::: ::::::::::::::::::::::::::::::

ps �10,200 went on paying my visa bill off and i had to show that. they took a photocopy of all my documents

[mtanner]

go to your local citezens advice beaureau and ask. they should have someone who can give you financial advice. you need to ask the quetion from a professional.

or - ring the council/benefits department and ask. you dont have to tell them your name and they should give you the answer to the questions you are asking.