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Job Seekers Allowance

by champ69 24 April 2009  |  Comments 9 comments  |  Love Love  0 loves

I see so many articles that say tou are automatically entitled to JSA for 6 mths REGARDLESS. I hear of people who get it who have £16k + savings, butthe Gov't site says clearly

How does it work?Contribution-based Jobseeker's Allowance

You may get contribution-based Jobseekers Allowance if you have paid or been credited with class 1 National Insurance (NI) contributions in the relevant tax years. Self employed contributions will not generally qualify you for contribution-based Jobseekers Allowance.

Income-based Jobseeker's Allowance

This is based on your income and savings. You may get this if you have not paid enough National Insurance contributions (NICs) (or you've only paid contributions for self-employment) and you're on a low income.

Surely if you have savings/haven'tpaid NI then you do NOT get it at all/for 6 mths ??


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Comments (9)

  • MikeGG1
    Love rating 909
    MikeGG1 posted

    Contribution-based JSA is paid if you have paid enough contributions, regardless of income.

    Income-based JSA is paid if you haven't paid enough contributions and your income is low. The amount paid is based on other income.

    Posted on 24 April 2009 | Love Love  0 loves Report
  • charles125
    Love rating 53
    charles125 posted

    It is important to note that JSA is means tested which usually means if a partner is working full-time (over 24 hours a week) you wouldn't be eligible.

    If a partner is working 16 - 24 hours a week, then the JSA payable will be reduced.

    If you have a pension then £ for £ over a certain amount will be deducted from JSA.

    There are stringent conditions on keeping up job applications and attending job interviews. You must also attend all required Job Centre interviews, even if the Job Centre is many miles away.


    Posted on 26 April 2009 | Love Love  0 loves Report
  • MikeGG1
    Love rating 909
    MikeGG1 posted

    It is only the Income-based JSA which is means-tested. Contribution-based JSA is paid regardless of the income of yourself or your partner.

    Posted on 26 April 2009 | Love Love  0 loves Report
  • bosun34
    Love rating 5
    bosun34 posted

    I am really confused, per MikeGG1's statement that 'Contribution-based JSA is paid regardless of the income of yourself or your partner.' as the Govt. website says concerning contribution-based JSA that:

    'You'll get less if you have savings over £6,000. If you have savings over £16,000 you probably won't qualify.'

    Like many others of my age, I have been saving hard to provide for my old age, yet it seems that if I were in the unfortunate situation of having lost my job, that I would not get the small weekly sum that I should be entitled to having contributed to the system for over 30 years because I have more than £16k in savings.

    Am I correct, or have I got it totally wrong?

    Posted on 27 April 2009 | Love Love  0 loves Report
  • champ69
    Love rating 18
    champ69 posted

    bosun - yep, that's why I am still confused too.

    If you have been employed and paid all/most NI conts, (Contribution based) then mike says you WILL get JSA regardless of savings (ie not means tested). BUT Govt site says re £6k/£16k, ie still means tested as maybe it 'ought' to be (but then why 'bother' saving if you can't get any benefits.

    I too an still confused.

    How do they KNOW what savings you have ?? OK they can ask for some bank statements, but my current account to which salary is paid into, will only show a few pence surplus at the end of the month. If I did not disclose the other few accounts/iSA/bonds, etc (as it seems other peeps don't !!) How would they know ? You do hear of the DHSS and IR computers being 'tied up' together, but I have never seen any evidence of it

    Posted on 27 April 2009 | Love Love  0 loves Report
  • Mick James
    Love rating 25
    Mick James posted

    "I have been saving hard to provide for my old age"

    Pension savings don't count towards the £16k limit.

    I would advise anyone facing redundancy to use their savings to pay down their mortgage, the best way being with an offset.

    That way all you lose are the accumulated ISA allowances you have taken advantage of in the past, not the savings themselves.


    Posted on 30 April 2009 | Love Love  0 loves Report
  • brickeyman
    Love rating 1
    brickeyman posted

    I have recently been made redundant. I went for an interview at my local job centre where I was told I did not qualify for any Job Seeker's Allowance as I am receiving a pension from a previous employer.

    Posted on 24 May 2009 | Love Love  0 loves Report
  • champ69
    Love rating 18
    champ69 posted

    seems a minefild then ...!

    I still don't know the answer to my original Q

    Posted on 25 May 2009 | Love Love  0 loves Report
  • mr spouse
    Love rating 0
    mr spouse posted

    @champ69, MikeGG1 gave you the answer. The website is badly set out and implies that contribution based JSA is reduced for savings. It isn't.

    When you apply, just tell them you don't want to claim for income based JSA - it will stop you wasting your time answering questions only to be told at the end you won't get it!

    The CAB guide is much clearer-

    So to repeat, Contribution-based Jobseeker's Allowance is not affected by any savings you have. The only things that would reduce it are part-time earnings or pension income.

    Posted on 30 May 2009 | Love Love  0 loves Report

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