Personal savings and impact for state benefits

[newseeker1]

Hi
My brother lost his job l last year. He got redundancy but hasnt found work since

He is single man with no partner or kids in his mid 40's.

He has been shrewd with his money over the years invested wisely - not a skinflint by any stretch of the imagination but was careful and has fair bit of savings behind him

He doesnt have mortgage and doesnt have any loans that i know off

Hes been on Job Seeker Allowance or Benefit or some of those benefits since losing his job but from speaking with him i understand this runs out after 12 months after which time its means tested

He hopes to have job by time it runs out but if it doesnt he believes that he wont get anything when the means test it when they look at savings he has

I dont know exactly how much he has in savings - think it fair bit when the redundancy is thrown in - could be maybe 200k i- i know his redundancy was near 100k as he worked in company long time and had moved up the ladder but dont know for definate- he hasnt said - but is their a threshold that welfare allow people to have in personal savings that is taken into account before they start means testing benefit or is there anything he could be doing now regarding distribution of funds or investing money so that he continue to get some of the benefits from the state

I fell sorry for him in a way. He worked hard all his life to date, paid his taxes and contributed to society and would be honest guy. When rest of us were off blowing all our money on having good time he was careful about it and always ensured he saved some - he did enjoy himself too .

Thoughts/suggestions anyone of would forum members just say tough break

Thanks

 

[ozzy]

Hi Scotty1,

I'm in a similar boat. I looked into getting the jobseekers allowance which is means tested. I was basically told when speaking to welfare that I would be etitled to nothing as my means which is calvulated based on my savings is greater than the amount I would be entitled to. It's a bum deal really. I was shrewd with my earnings but not I can't get any assistance. Outside of not declaring savings and investments which is fraud, there's no way around it as far as I can see.

 

[Swallows]

Hi, with that sort of money he could start a small business that would bring him in the equivalent of the dole money.

 

[Rambler]

Are there any investment options, either long or short term, a pension plan or anything like that, that such savings can be invested in, so that they aren't subject to means testing ?