Jobs Seekers Allowance Means Test

United Park

Hi,

Hoping somebody here can help me out. Ive been reading the social welfare site and trying to do spreadsheets from it, but I can’t figure it out and it’s doing my head in.

Just wondering if my wife would be entitled to job seekers allowance with the below figures? (I don't think she will be entitled to anything but just want to confirm).

Wife is considering taking voluntary redundancy – expected to get approx. 70k redundancy. My understanding is she will be entitled to jobseekers benefit for 7 out of 9 months.

Re: job seekers allowance after those 9 months:

Some personal details:

My wage: Approx 67k

3 kids: Ages: 8, 5, 3

Second property: Value approx. 160k. Mortgage remaining approx. 180k. Renting for half the market value, 500e a month.

Savings: 5k

I’m thinking we won’t be entitled to anything but would just like opinions from those more knowledgeable?

My wife doesn’t be well at times, so we’re not sure if she will be able for another job in a years time – but obviously we’re not factoring that in at the moment as we are hoping for the best on her health!

emilymemily

Besides the redundancy payment, second property and savings, with your wage alone its not likely she will be entitled to anything.

Try_harder

Claim the stay at home parent tax credit. She wont get JA

United Park

Thanks for the responses.

It’s a bit frustrating as it’s the first time any of us will have been out of work. While the redundancy is “voluntary”, she sort of has to take it because of where she could be redeployed, put back on to a 5 day week (not doable with kids. She currently does a 3 day week. Plus for health reasons, I’m not sure she’d be up for the 5 day week tbh).

If she got another 3 day week job close to home, it’d be great but can’t count on it obviously!

That homecarers allowance looks like about 700 into our hand after tax. We are going to be stretched so every little helps.

Thanks for that.

Try_harder

Also her not working will reduce your tax bill further

United Park

Try_harder wrote: »

Also her not working will reduce your tax bill further

Yeah I was looking into that too and the amateur economist in me got a rude awakening.

My wife is on about 25k. Thought if she wasn’t working, we might be down about 12k into hand. But did 2 different online tax calculators and it looks like we’ll be down about 19k into the hand when all tax credits are transferred to me so really need to make up as much of that shortfall as possible

Try_harder

You wont get her working tax credit - you will get everything else tho

splinter65

You’re nearly €400 outside the means test so no JSA. Is she leaving through ill health? If she’s not fit for full time work then she should apply for Illness Benefit as soon as she finishes work if her GP agrees. She can get that for up to 2 years and the redundancy penalty doesn’t apply.

United Park

splinter65 wrote: »

You’re nearly €400 outside the means test so no JSA. Is she leaving through ill health? If she’s not fit for full time work then she should apply for Illness Benefit as soon as she finishes work if her GP agrees. She can get that for up to 2 years and the redundancy penalty doesn’t apply.

Her health is “ok” at the moment but she genuinely wouldn’t be able for a 5 day week so has to take the voluntary redundancy. She does a 3 day week, job sharing, at moment officially for childcare reasons.

With the illness she has, she could deteriorate a good bit eventually - but we’re both hoping she won’t!

Thanks again for all the replies. I was half expecting us not to be entitled to job seekers allowance - but was surprised how much our take home pay would be down after all the tax credits were taken into account (being down 19k with her earning 25k seems very high but seems to be right)