Job Seeker Allowance

[Kateykrunch 10]

Does anyone know why someone would recieve a letter to say that their JSA would be stopped in 3 months time, the reason being 'that your entitlement based on Class 1 National Insurance has run out'. This is someone who was recently made redundant, now working on a zero hours contract and just started to recieve JSA. Its all a bewildering system!

[Ghozer 112]

It means that when they were working, and paying the National Insurance contributions, they were 'paying into the system' - when they then sign-on after being made redundant or similar, the money they paid into the NI is then used to cover the Job Seekers, it's called "Contribution based" (meaning using money you already contributed)

 

once that money runs out, You are then put on "income based" which means it's paid for by the government etc. - but it's good to phone them up, and check if they will be automatically moved over (as it doesn't always happen)

[Bob Arctor 11]

It means that when they were working, and paying the National Insurance contributions, they were 'paying into the system' - when they then sign-on after being made redundant or similar, the money they paid into the NI is then used to cover the Job Seekers, it's called "Contribution based" (meaning using money you already contributed)

 

once that money runs out, You are then put on "income based" which means it's paid for by the government etc. - but it's good to phone them up, and check if they will be automatically moved over (as it doesn't always happen)

 

This is right. If you have savings or capital over £5500 this would have been disregarded while on contributions based JSA, but would reduce your payments on income related JSA.

[Kateykrunch 10]

Thank you for your input. If the Contribution based moves over to Income based JSA, will that be means tested and is the £5500 the cut off for claiming. There is a small pot of redundancy money which of course is quickly being used up (single Mum, 2 children and rent to pay). Just seems such a complicated system to navigate especially with the zero hours contract she has managed to get, it caused ructions with the Job Centre last week as she took on an extra 3 hours of work and they said she might have to sign off just becuase she managed 17 hours work that week (usually it is 15 hours, term time only).

[Bob Arctor 11]

Thank you for your input. If the Contribution based moves over to Income based JSA, will that be means tested and is the £5500 the cut off for claiming. There is a small pot of redundancy money which of course is quickly being used up (single Mum, 2 children and rent to pay). Just seems such a complicated system to navigate especially with the zero hours contract she has managed to get, it caused ructions with the Job Centre last week as she took on an extra 3 hours of work and they said she might have to sign off just becuase she managed 17 hours work that week (usually it is 15 hours, term time only).

 

You don't get nothing if you have over 5500 but you the amount you get will reduce ('taper' is the official jargon) the more over 5500 you have, up to a limit of 16000, after which you get nowt. Sorry for the absence of pound signs - my keyboard mapping is all over the place at the moment. I think I'm right in saying that you lose a pound a week for every 250 you have over 5500 but I could be wrong.

[GLASGOWOODS 10]

Not sure of the facts here, but, a friend of mine reckoned that if you are made redundant and you don't get a job in a certain timescale you can claim tax back on your salary because tax deducted each month is based on what they think you earn over the tax year...If this makes sense??? I'm sure someone can work it out???

[I1L2T3 10]

Not sure of the facts here, but, a friend of mine reckoned that if you are made redundant and you don't get a job in a certain timescale you can claim tax back on your salary because tax deducted each month is based on what they think you earn over the tax year...If this makes sense??? I'm sure someone can work it out???

 

Hi yes, it makes sense and you can do it in certain circumstances

[Ms Macbeth 73]

This is right. If you have savings or capital over £5500 this would have been disregarded while on contributions based JSA, but would reduce your payments on income related JSA.

 

It's worth noting (although it doesn't apply here) that even if someone would be eligible for Contribution based JSA, they won't get it/it will be reduced if they claim a private/occupational pension. Happened to a friend of mine in their fifties.

Edited October 9, 2017 by Ms Macbeth

[jgharston 11]

Not sure of the facts here, but, a friend of mine reckoned that if you are made redundant and you don't get a job in a certain timescale you can claim tax back on your salary because tax deducted each month is based on what they think you earn over the tax year...If this makes sense??? I'm sure someone can work it out???

 

And to clarify, it's not if you are made redundant. *ANY* circumstances where you have been paying income tax on the assumption that you will be working for a full year and don't actually work for a full year will result in overpayment of income tax that you can claim back.

[heatherj 10]

Does anyone know why someone would recieve a letter to say that their JSA would be stopped in 3 months time, the reason being 'that your entitlement based on Class 1 National Insurance has run out'. This is someone who was recently made redundant, now working on a zero hours contract and just started to recieve JSA. Its all a bewildering system!

 

If you have paid NI contributions then you are entitled to claim contributions based JSA which is not means tested. Used to be for up to 6 months then if still claiming you would need to claim income based JSA which of course is means tested.