Savings under �8000

[monty0703]

Someone I know has recently become unemployed. When applying for benefit he was under the impression that his savings (well under �8000) would not be a factor because the amount is below the 'unacceptable' level of savings. However, he is to get �19 a week to live on! His savings (he is in his 50s) are in an ISA which is not doing too well so if he was to cash it in, he would get back a lot less than he invested in the first place and the bank recommends he gives it more time. So much for his nest-egg for his old-age. The government encourage us to save for our old-age but what's the point? BTW, before people start thinking 'sponge', signing on is a temporary set-back for him. Apologies if this was a bit long-winded!!

[bobbobley]

Your question appears to be "what's the point"? Well, clearly there are lots of points - to pay bills etc. when retired, to supplement the meagre state pension we receive, if in fact this is still payable by the time most of us hit that age, to enjoy retirement and take long holidays, buy stuff you want, the obvious really.

Sorry to hear your friend may not now be able to keep his money for that, but if this hadn't happened to him then I am sure that is the sort of thing he would have used it for her.

Also, as its a temporary setback then hopefully it shouldn't be too much of a problem for him. When he was made unemployed was he not entitled to any kind of redundancy pay-out?

[BadBob]

Its a total disgrace, I can understand that in a civilised society we need to help those less fortunate than ourselves but its always the people like your friend who have paid in to the system that get the least out. If it is temporary then hopefully he can get out of it quick. But I agree its terrible that he has done what the government have suggested and he's worse off for it.

[monty0703]

After rereading my post, I realise I may not have actually asked a question! bobbobley, you said what I meant when I asked 'what's the point'. That money was to supplement his meagre (if existant by then) government pension. As you say BadBob, it's always working people and the genuinely needy who lose out. My query is that if the government say that it is ok to have savings under �8000 then why are his benefits being affected? Has anyone had a similar experience? Cheers!

[rinkytink]

Try checking out the info here:

http://www.jobcentreplus.gov.uk/cms.asp?Page=/Home
/Customers/WorkingAgeBenefits/497#what

There are two types of job seekers allowance - has your friend applied for both ?

[Janetex]

A lot of us are sick of injustices like this in the system. Tell him to set up a "How to become a Sponge" course so that at least we could be forewarned about such situations. .

[Miss Zippy]

It makes mad that people who strive to be financially independent of the state and provide for themselves and their family by saving a little money each week/month (as the govt encourage us to do) are then penalised when they hit rough times. This means a person's modest savings of a few thousand pounds which could have taken them years to save can be wiped out by a few month's unemployment. It makes me mad. Where's the incentive to save that money up again?