Jobseeker’s allowance
Note: income-based JSA is affected by the introduction of UC (see here). JSA provides basic financial support for people who are expected to look for work. There are two types of JSA.
•Contribution-based JSA (sometimes called ‘new-style JSA’), which is paid for six months to those who have recently paid NI contributions. Contribution-based JSA is not being replaced by UC.
•Income-based JSA, which is means tested with no requirement to have paid NI contributions. Income-related JSA is being replaced by UC and a client cannot make a new claim for it.
Income-based JSA pays a basic amount for the client and their partner, if they have one. Some people who have been getting income-based JSA since before 2004 may also receive amounts for their children. Income-based JSA is a ’passporting’ benefit – ie, it can help the client get maximum HB, help with health costs, free school meals for their children, budgeting loans and Scottish benefits such as funeral support payment. Extra amounts can be paid depending on the client’s circumstances – eg, if they are caring for someone or have a disability.
Contribution-based JSA pays a basic amount for the client and is only paid for six months. Contribution-based JSA can be ‘topped-up’ with income-based JSA or UC.
Clients may have their JSA reduced by a sanction if they do not comply with certain ‘jobseeking conditions’ (eg, attending interviews) and for other things, such as losing a job because of misconduct, giving up work without a good reason or for not participating in specified training or employment schemes. There is a right to appeal, and it is always worth considering whether a sanction could be challenged.
Clients can apply for hardship payments if their JSA is not paid because of a sanction and they are considered to be in a vulnerable group – eg, carers, and people who have a disability or children.
JSA is taxable.