unemployment assistance means test and debt\loan

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Thomas76

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I'm due to finish my contract next month and will then have to under go a social welfare means test.

The means test seem to falsely conclude that any money in the bank is savings/capital.

While I've managed to accumulated a sum of money over the course of my contract of over 30,000 , i do have bank debt of about 40,000 taken out for home improvement with payments of a little under 1000 a month.

Does the mean test take this debt into consideration?

I've looked through all the social welfare means test literature, but they make no mention of debt or debt repayments affecting means.

While I could repay a portion of the debt early, I would prefer to keep the cash for mortgage\debt payment etc until I can start work again.
 
Loans or debts aren't included in SW means tests.
For jobseekers allowance, the first 20k of savings is disregarded.
 
This is correct they dont take debt into means.

So either you pay some of the debt of with cash, as you can show that this debt was before you were unemployed and you're trying to lower your loan repayments to more manageable payments going forward. But you have to be careful, as an officer could decide that you're deliberating about lowering your means. So make sure you have a paper trail and can prove debts before and after payment incase queryied.

if 40k in saving you means will be €30 a week
if 30k in saving your means will be €10 a week
 
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Marsupial said:
What's "false" about the means test concluding that €30,000 sitting in someone's bank account is savings?
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Well to my mind if you have a personal loan for 40,000 and cash of 30,000, you don't have 30,000 of savings but 10,000 net debt or negative savings.

If you take a out loan you will have money in your current account but that doesn't make that savings.
 
Thomas76 said:
Well to my mind if you have a personal loan for 40,000 and cash of 30,000, you don't have 30,000 of savings but 10,000 net debt or negative savings.

If you take a out loan you will have money in your current account but that doesn't make that savings.
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I have false teeth. But you don't have false savings!

Why not pay off €10,000 of the debt and then you'll be able to keep the €20k of "false" savings and get your full whack of JA. No brainer, really!

Bear in mind that you're playing DSP's game on DSP's pitch and they're providing the referee!
 
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