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Job Seekers Allowance
Have you heard of Jobseeker’s Allowance or JSA, but don’t know if you’re eligible to receive it?
Or are you wanting to find out what benefits are available to you in your circumstances?
Job Seekers Allowance can be very confusing, as there are two types - and knowing which one you’re entitled to isn’t easy.
So here’s a quick introduction to this benefit.
More commonly referred to as 'the dole', Job Seekers Allowance is a benefit for people who are not working. However to be eligible for Job Seekers Allowance you must be ‘available for work’. What this means is that if you are sick, a carer or a lone parent or otherwise not available to work then you need to claim a different benefit instead (see our guide).
You might have a part time job, but as long as this is under 16 hours a week, you could still be eligible for Job Seekers Allowance. Please note that JSA is not usually paid to people under 18; 16 and 17 year olds will normally need to claim income support instead.
If you can’t be paid normal Job Seekers Allowance for any reason, for example because you turn down a job offer or you left your last job voluntarily ‘without good reason’ you could still be eligible for ‘hardship provision’ – please speak to your Jobcentre, CAB or Connexions adviser.
But usually if you are unemployed, but can work, or are looking for work, then you are probably entitled to Job Seekers Allowance.
So which type of Job Seekers Allowance is it that you’re entitled to?
Contribution-based Job Seekers Allowance
This is paid to you when you’ve paid a certain amount of National Insurance (NI) contributions through previous employment. (This is called your contribution record). In other words, if you’ve previously been employed for any length of time, you will have paid National Insurance. If your contributions reached a certain level, you would now be eligible for Contribution based Job Seekers Allowance.
This is paid for a maximum of 6 months, (after which you’ll need to claim Income-based Job Seekers Allowance). You can’t use the same NI contributions if you need to make another claim later. People under 25 receive less than people over 25.
Also, contribution-based JSA can’t be used to pay housing costs, so for example if you have a mortgage you’ll need to claim Income-based Job Seekers Allowance as well.
For more information on Contribution based Job Seekers Allowance, and to find out how much you may be able to receive, click here.
Income-based Job Seekers Allowance
This doesn’t depend on your National Insurance contributions, but on how much income and capital you have. (This is known as ‘means-tested’). Therefore if you haven’t paid much NI before, for example because you’ve been a student, and have no other source of income or capital, then you would be eligible for Income based Job Seekers Allowance.
Your claim for Income-based JSA can include your partner and any dependent children.
For more information on Income based Job Seekers Allowance, and to find out how much you may be able to receive, click here.
Disclaimer, Target Audience, Jurisdiction Last updated & checked: 29/03/2006