Means tested job seeker allowance

If you are out of work and are considering the income-based job seekers allowance, the DSS will subject you to a means test and if you have more than £8000 in savings you will get your entitlement reduced. Savings includes bank accounts and PEPS and ISAs but not Pensions. Under the new pension rules you will only be restricted by the maximum life time contributions (£1.5 million ? I think) and not by a percentage of your current earnings.

Question. If I am about to go on Jobseekers allowance and I have savings above £8000 can I immediately transfer the excess into a pension fund. Claim my full benefit and protected my hard earned savings in a pension.

Mike

Reply to
gillingw
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Question. If I am about to go on Jobseekers allowance and I have savings above 8000 can I immediately transfer the excess into a pension fund. Claim my full benefit and protected my hard earned savings in a pension.

Mike

If this was possible you do know that you could not withdraw any capital until your retirement date don't you? Not knowing how old you are you may be a little pessemistic about your future job prospects. I may be wrong but I always thought jobseekers allowance was not means tested but if you claim other benefit such as say housing benefit it will come into play.

Reply to
Eric Jones

Nope. If you have more than 3000 you get the entitlement reduced. If you have more than 8000 you get nothing (in *income based* JSA - you may get contribution based JSA).

Well - except 100% or 3600 if less, IIRC. I don't think you can put more in than you earned in the tax year unless it's less than 3600, when 3600 is the limit. And the rules don't change till next tax year so you can't do it now.

Possibly, but note that there is a rule that if you "deliberately deprive" yourself of capital in order to claim means tested benefits, then that capital is counted as still being available to you, even though it isn't! If you simply ensure that your capital never exceeds 8000 by using a pension or paying down your mortgage while in work, then you should be OK. If you get rid of your savings as soon as you lose your job you might have problems.

Also if you've paid NI for a couple of years or so while in work, you should get contribution based JSA for 6 months, which isn't means tested.

For more info post on uk.gov.social-security

Reply to
Andy Pandy

There are two types, contribution based JSA which isn't means tested, it's about

56 a week if you're over 25 and paid for 6 months regardless of savings. You need to have paid NI for a year or two (can't remember exactly how long) to get it.

Then there is income based JSA which is means tested - no time limit for paying it, same amount for a single person as JSA(c) and more for a couple. But it's means tested and any savings over 3000 reduce it, any over 8000 eliminate it (unless you're over 60).

Yup, means tested in a similar way but capital limits are more generous (IIRC

16000).
Reply to
Andy Pandy

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