Active discussions

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Can I do this and claim benefits or not?

118 replies

Yapppp · 31/10/2025 20:14

I am a massive worrier. I love my job and don’t want to not work but I overthink everything and like to have a plan in an emergency.

I have a decent amount of savings, enough to pay off half my mortgage. I’m keeping it investments for now as well as overpaying my mortgage monthly. If I were to lose my job, could I pay off the chunk of my mortgage with my savings and then claim benefits while I looked for another job? It almost seems pointless saving if I don’t get the same access to benefits as the next person should my job go wrong and I need time to find another. But I also don’t want to pay it off now when I’m working. Does anyone know as it seems confusing online when I google it!

OP posts:
themerchentofvenus · 31/10/2025 21:15

ComfortFoodCafe · 31/10/2025 21:12

No its not, its being used to pay off her mortage. Its not pissing it up the wall.

Show quote history

???

If you get made redundant then you can't just make your money deliberately disappear just to put yourself below the threshold to claim benefits.

TardisDweller · 31/10/2025 21:15

ComfortFoodCafe · 31/10/2025 21:12

No its not, its being used to pay off her mortage. Its not pissing it up the wall.

Show quote history

Mortgage is not considered the same type of debt though. They do examine such cases very carefully.

Doggielovecharlotte · 31/10/2025 21:14

Look it up! Last time I was in contact with benefits system definitely the rule - job seekers for first 6 months automatic - after which its income based

ComfortFoodCafe · 31/10/2025 21:12

themerchentofvenus · 31/10/2025 21:11

@Yapppp you could pay off your mortgage NOW and if you were then made redundant and didnt have savings you could claim aome benefits.

But no, you cannot suddenly pay off your mortgage as soon as you got made redundant as that would be deliberate deprivation of capital.

No its not, its being used to pay off her mortage. Its not pissing it up the wall.

Araminta1003 · 31/10/2025 21:11

Look in the U.K. benefits isn’t a contribution based system like most other countries so if you are worried get a private insurance to cover you for loss of earnings should you lose your job. Other countries reward people who pay their way and have paid into the system so if they lose their job, they are covered sometimes up to two years. England is more socialist and unproductive and does not reward contributions made by those who paid a lot in taxes. So you have to do it privately or go live somewhere with a better system or plan by saving 6-12 months.

ComfortFoodCafe · 31/10/2025 21:11

Technically you can. Morally though, its a bit of a shit move.

themerchentofvenus · 31/10/2025 21:11

@Yapppp you could pay off your mortgage NOW and if you were then made redundant and didnt have savings you could claim aome benefits.

But no, you cannot suddenly pay off your mortgage as soon as you got made redundant as that would be deliberate deprivation of capital.

ToKittyornottoKitty · 31/10/2025 21:09

Doggielovecharlotte · 31/10/2025 21:05

OP I think you can claim benefits for 6 months without any means testing if you are made redundant or lose job - so it doesn’t matter what you have in the bank or whether you have a partner

youd probably get a job within that period

Edited

Where did you pluck that from?

MaurineWayBack · 31/10/2025 21:07

@Yapppp youd need to check tbh.

Using a big amount like this to buy fancy stuff (let’s say a really posh car) and then claim you have no savings isnt allowed. That deprivation of capital.
However, paying off debts is allowed.

Im not sure if a mortgage fits into that.

TardisDweller · 31/10/2025 21:07

ToKittyornottoKitty · 31/10/2025 20:58

Why’d you change your answer so much?

Show quote history

Indeed, I agreed with the original post based on only a little experience. Not the new one.

user1471453601 · 31/10/2025 21:07

Are you really looking for advice on how to cheat tax payers of you no longer are one?

Not very patriotic are you?

Doggielovecharlotte · 31/10/2025 21:05

OP I think you can claim benefits for 6 months without any means testing if you are made redundant or lose job - so it doesn’t matter what you have in the bank or whether you have a partner

youd probably get a job within that period

zipadeedodah · 31/10/2025 21:03

Moveoverdarlin · 31/10/2025 20:19

You won’t have access to the same benefits as other people because you simply don’t NEED them. You can’t claim benefits whilst sat in a home you own outright.

yes you can. Did you really not know this?

zipadeedodah · 31/10/2025 21:02

Greenwitchart · 31/10/2025 20:49

Yes you can.

When/if you claim benefits you will be asked if you have any savings because there is a limit, I think it is £16,000. If you have more than that in savings you won't be able to claim.

But you are perfectly entitled to pay off some of your mortgage, which is a debt, to reduce your monthly outgoings. Nothing to do with ''deprivation of assets''.

Some of the replies on this thread are batshit...

I was about to say similar.

Catsknowbest · 31/10/2025 20:58

Doggielovecharlotte · 31/10/2025 20:50

Paying off your own mortgage is not deprivation of assets - you are settling a debt

of course you’d be entitled to benefits

deprivation of assets is stuff like gifting money to avoid having money in the bank

Yes, correct. However, the clearing of parts or whole mortgage debts in order to become eligible to claim MT benefits has been queried for some time and in many ways rightly so. This clears a debt that frees up a large asset that, whist the only home, can be iliquidated in whole or part at any time. Meanwhile that person claims MTBs until they want or need to liquidate it....

Arregaithel · 31/10/2025 20:58

"could I pay off the chunk of my mortgage with my savings and then claim benefits while I looked for another job?"

Yes, theoretically you could, morally though, is open to pearl-clutching judgement.

ToKittyornottoKitty · 31/10/2025 20:58

Catsknowbest · 31/10/2025 20:53

Technically yes. Morally very questionable. You will clear a huge chunk of debt from a future realisable asset then claim MT benefits. That is, no matter how you dress it up, playing the system.

Edited

Why’d you change your answer so much?

TardisDweller · 31/10/2025 20:57

Catsknowbest · 31/10/2025 20:53

Technically yes. Morally very questionable. You will clear a huge chunk of debt from a future realisable asset then claim MT benefits. That is, no matter how you dress it up, playing the system.

Edited

This is my understanding of it too, whilst mortgage is technically a debt, it isnt viewed in the same way.

Buxusmortus · 31/10/2025 20:56

Catsknowbest · 31/10/2025 20:53

Technically yes. Morally very questionable. You will clear a huge chunk of debt from a future realisable asset then claim MT benefits. That is, no matter how you dress it up, playing the system.

Edited

But on the gov website it specifically says that you can clear debts with savings and it would not be deprivation of capital, so why are you saying it's ambiguous? Is the website wrong?

Catsknowbest · 31/10/2025 20:53

Technically yes. Morally very questionable. You will clear a huge chunk of debt from a future realisable asset then claim MT benefits. That is, no matter how you dress it up, playing the system.

CryMyEyesViolet · 31/10/2025 20:51

Why do you bother working if you just want benefits?

I work and save so I hopefully don’t ever have to rely on benefits, and if I lose my job I can maintain my nice life until I get a new job. I can’t think of a worse plan than getting rid of my liquid capital if I lost my income…

Doggielovecharlotte · 31/10/2025 20:50

Paying off your own mortgage is not deprivation of assets - you are settling a debt

of course you’d be entitled to benefits

deprivation of assets is stuff like gifting money to avoid having money in the bank

Greenwitchart · 31/10/2025 20:49

Yes you can.

When/if you claim benefits you will be asked if you have any savings because there is a limit, I think it is £16,000. If you have more than that in savings you won't be able to claim.

But you are perfectly entitled to pay off some of your mortgage, which is a debt, to reduce your monthly outgoings. Nothing to do with ''deprivation of assets''.

Some of the replies on this thread are batshit...

Catsknowbest · 31/10/2025 20:47

Moveoverdarlin · 31/10/2025 20:19

You won’t have access to the same benefits as other people because you simply don’t NEED them. You can’t claim benefits whilst sat in a home you own outright.

Incorrect. As long as it is your only home, you can.

ToKittyornottoKitty · 31/10/2025 20:45

You should probably check if it’d be worth it first. Do you have kids? If not you’d likely only get a very tiny amount and you’d be forced to search for a job and prove it, attend job centre meetings etc and it probably won’t be enough to live on anyway.