Jobseeker's Allowance
From Wikipedia, the free encyclopedia
In the United Kingdom Jobseeker's Allowance (JSA), colloquially known as The Dole, is a form of unemployment benefit that is paid by the government to people who are unemployed and seeking work. It is part of the social security benefits system and is meant to cover the cost of living expenses in periods where the claimant is out of work. It is paid by the Department for Work and Pensions (DWP), normally through the local Jobcentre Plus office. It is a working age benefit, and is only available to those 16-60, except in certain circumstances.
There are two forms of Jobseeker's Allowance, contributions-based and income-based
Contributions are collected for the DWP by Contributions Office (HM Revenue and Customs), who keep a permanent record of contributions paid by everyone in the UK who has a National Insurance number.
According to the 1911 Encyclopædia Britannica article on Dole, the word dole, meaning a charitable distribution of food and money, derives from Old English dal, from which we also get the word deal - New Deal. Receiving Jobseeker's Allowance is also known colloquially as "signing on", due to the need to present at the Job Centre each fortnight (see below).
Australia has implemented strikingly similar unemployment/welfare policies, which also have official titles based on informal, colloquial terminology. (eg. see Centrelink and Work for the dole).
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[edit] History
The first Unemployment Benefits were made from 1911, to jobseekers who had paid National Insurance contributions ('the stamp'). These payments were thus only made to people who had recently been in work, and not simply those on low incomes. Furthermore, claims were only payable for up to 12 months, by which time a claimant had to have regained work.
After the Second World War, the National Assistance Act 1946 was passed, and from 1948 anyone of working age, on a low income could apply for support. National Assistance was replaced by Supplementary Benefit in November 1966, and UB claimants could transfer to this after their initial entitlement had expired. Supplementary Benefit was later replaced by Income Support in April 1988.
To streamline the system of benefits, and partially remove the distinction between means-tested claimants, and those claiming against contribution records, long-term jobseekers were disallowed from claiming Income Support in 1996, when the current Jobseeker's Allowance was introduced.
[edit] Contribution-based Jobseeker's Allowance
Contribution-based Jobseeker's Allowance, JSA(C), is based on Class 1 National Insurance contributions. Certain other benefits including Statutory sick pay, Statutory paternity pay, Statutory maternity pay, Statutory adoption pay, Incapacity benefit, Bereavement benefit, Carer's allowance and Contribution-based Jobseeker's Allowance itself also count towards Class 1 contributions and are called "Credited Class 1 contributions".
Self-employed people do not pay Class 1 contributions, and thus may not claim JSA(C).
To be eligible to make a claim for JSA(C) the claimant must first of all prove that they are actively seeking work. This is done by filling in a Jobseeker's Agreement form and attending a New Jobseeker interview (NJI). They must also present themselves to their local Job Centre every fortnight thereafter to "sign on".
They must also have to have paid Class 1 National Insurance contributions on earnings of at least twenty five times the Lower Earnings Limit in one of the two complete financial years before the start of the claim year in which the claim is being made. They must also have to have paid Class 1 or Credited Class 1 contributions on earnings of at least fifty times the Lower Earnings Limit in both complete financial years before the start of the claim year in which the claim is being made.
[edit] Income-based Jobseeker's Allowance
People who are not eligible for JSA(C) may claim for Income-based Jobseeker's Allowance, JSA(IB), which is means tested for each individual claimant and/or their dependents. People who are eligible for JSA(C) may also claim JSA(IB) for any additional payments due under that benefit (for family dependents, for example). Eligibility for JSA(C)is used up (in the first twenty six weeks) before moving onto full JSA(IB) which may only be paid if the claimant has less than £16,000 in savings (correct as of July 2006). Payments are also reduced when the person has savings between £6,000 and £16,000.
Both forms of benefit face 100% marginal deductions if the individual earns more than a small amount and are withdrawn from those working sixteen or more hours a week.
[edit] Sanctions regime
In certain cases, a claimant's Jobseeker's Allowance may be stopped. Those are:
- Not being available for or actively seeking work, or not signing the Jobseeker's Agreement: if a claimant doesn't declare on the Jobseeker's Agreement that they're available for and actively seeking work, and sign it, then benefit will be suspended until the date that the claimant completes and signs the agreement. Once the agreement has been signed, a Decision Maker will decide how much of the back benefit the claimant should get, if any.
- Missing a Restart interview: claim will be terminated unpaid, back benefit entitlement will be lost, and the client will need to make a new claim.
- Voluntarily leaving work, or refusing a notified vacancy: temporary reduction or stoppage of benefit payment, known as a sanction. The sanction may be up to 26 weeks, and the length will be decided by an adjudicator. A notified vacancy is a job vacancy which the claimant has found out about from Job Centre Plus, who keep records of all the jobs their clients request information about.
- Refusing to attend compulsory scheme, or failing to comply with Direction: sanction of two weeks for first 'offence', and four weeks for second and subsequent offences.
[edit] New Deal
If a claimant below 60 years of age has been unemployed for 18 months, they will be placed on the New Deal scheme. Claimants under 25 years old will be placed on New Deal after six months. Some may also enter the New Deal process early if they fall in special categories.
[edit] Over 60
Customers reaching the age of 60 are still eligible to claim Jobseeker's Allowance, although they must remain actively looking for work. If a customer wishes, they can apply for Pension Credit after they have reached their 60th birthday, which will replace their Jobseeker's payments and avoid the requirement to sign on, provided they don't resume work after their 60th birthday. NI credits will be paid on their behalf, regardless of whether they are claiming either benefit.
