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Jobseeker's Allowance

LEGISLATION

The Jobseekers (NI) Order 1996

The Jobseeker’s Allowance Regulations (NI) 1996 as amended

INTRODUCTION

Jobseeker’s Allowance (JSA) has two components:

JSA places strict requirements on a person to seek employment. A person is required to sign and keep to a Jobseeker’s agreement which commits her/him to taking specific steps to find work. An employment officer has the power to give formal directions which compel a person to take specific action to help her/him find employment or improve her/his prospects of employment.

These notes are divided into five sections:

Child Tax Credit (CTC) was introduced on 6 April 2003.  It replaced help for children in JSA(IB). From 6 April 2004, JSA(IB) is an adult only benefit. Therefore any person making a claim for JSA(IB) who has dependent children should also make a claim for Child Tax Credit (CTC) if s/he has not already done so.  If a person has a claim for CTC, s/he should notify any change of circumstances, eg no longer working.

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1. COMMON RULES

To qualify for JSA, a person must satisfy all of the following common rules:

In addition, a person claiming JSA(C) must satisfy contribution-based conditions (see 2.1) and likewise a person claiming JSA(IB) must satisfy income-based conditions (see 3.1). Also, some couples are required to make a joint claim which may include attendance at a compulsory work focused interview for partners of people claiming JSA(IB) (see section 4).

1.1 Available for work

In order to be deemed available for work, a person must be willing and able to take up employment immediately. However, there are exceptions. Voluntary workers and carers are allowed one week’s notice (48 hours notice to attend an interview) and a person providing a service is allowed 24 hours notice. A carer is defined as a person with responsibility for caring for a child under sixteen or for an elderly person over pensionable age or for a person who is physically or mentally disabled and requires care from someone in the same household or a close relative. Voluntary work is work for a non-profit making organisation or work other than for a member of the person’s family where the only payment is in respect of expenses incurred. A person working part time and required to give notice will only have to be available to start another job after serving the notice. A person must be willing and able to work at least 40 hours per week unless otherwise exempted. S/he must also be willing to accept work of less than 40 hours per week (but usually not less than 24 hours) if it is offered. A carer can restrict her/his hours of availability to less than 40 hours provided s/he is available for at least sixteen hours per week and for as many hours as her/his caring responsibilities allow. S/he must show that s/he has reasonable prospects of securing employment.                                                               

A person can agree to a pattern of availability across the week provided the pattern is recorded in the Jobseeker’s agreement and s/he still has reasonable prospects of finding work.

Complex rules apply where a person may be treated as available or unavailable for work in certain circumstances, for further information see Child Poverty Action Group’s Welfare Benefits and Tax Credits Handbook.

1.1.1 Restrictions on jobs

A person may place restrictions on the nature, terms and conditions of employment or the locality of any work s/he is prepared to accept provided that s/he can show that s/he has reasonable prospects of employment and is available for work of 40 hours per week. The level of remuneration can be restricted but only for the first six months of the claim.

A person may restrict her/his availability in any way if the restrictions are reasonable in view of her/his physical or mental condition. The rate of pay can be restricted indefinitely on the same grounds. A person who falls within this category does not need to show that s/he has reasonable prospects of employment. However, if a person has no prospects at all of securing employment, it may be in her/his interest to claim Incapacity Benefit or Income Support on the grounds of incapacity for work instead of JSA.

A person may restrict the nature of employment for which s/he is available on the grounds of religious belief or conscientious objection, providing s/he can demonstrate that s/he has reasonable prospects of work and is available for 40 hours per week.

In deciding if a person has reasonable prospects of securing employment, the following factors will be taken into account:

The burden of proof that a person has reasonable prospects of securing employment if s/he restricts availability is on the person applying.

1.1.2 Permitted period

A person may be treated as available for work for a permitted period of between one and thirteen weeks where s/he is allowed to restrict availability to her/his:

When deciding the permitted period, the following factors must be taken into account:

1.2 Actively seeking work                                                             

A person must be actively seeking work to receive JSA. S/he is expected to take at least three steps in each benefit week, unless taking one or two steps is all that is reasonable to do in that week. There is no exhaustive list of what counts as steps.

Steps which may be considered reasonable for a person to take in any week include:

In determining what steps are reasonable for a particular person, consideration must be given to her/his:

During any permitted period, a person can restrict the steps taken to her/his usual occupation and/or her/his usual pay.

Steps taken shall be disregarded where a person:

Even if a person is not actively seeking work, s/he can be treated as if s/he is in certain circumstances eg laid off, working short-term, two-week holidays per year, temporarily detained in police custody for a period of 96 hours or less, required to attend a court or tribunal (as a justice of the peace, lay magistrate, party to any proceedings, a witness or a juror), providing certain conditions are met. For further details see Child Poverty Action Group’s Welfare Benefits and Tax Credits Handbook.

1.3  Jobseeker’s agreement            

A person claiming JSA must usually agree and sign a written Jobseeker’s agreement with an employment officer. The Department for Social Development (DSD) will not normally determine entitlement to benefit until this has taken place. If this leads to a delay in payment of benefit it may be possible to claim a hardship payment (see 5.2). In very exceptional circumstances, eg a strike by Social Security Agency staff, a person who has not signed an agreement may be treated as having done so.

The Jobseeker’s agreement must include:

The Jobseeker’s agreement must be signed by both the person and the employment officer. The person must be given a copy of it.

The employment officer cannot enter into an agreement if s/he does not accept that the proposed agreement meets the availability for and actively seeking work conditions. In these circumstances, the employment officer can refer the proposed Jobseeker’s agreement to a decision maker for determination.

Where a person thinks it is unreasonable to be asked to comply with the terms of the agreement, s/he can ask for the proposed Jobseeker’s agreement to be referred to a decision maker for determination.

The decision maker must make a decision within fourteen days of the agreement being referred unless to do so would be impracticable. Either the person or the employment officer can ask for this decision to be revised or superseded by a different decision maker.

If the person is dissatisfied with the determination made by the decision maker, s/he may appeal to an appeal tribunal within one month of the date of notification of the decision. The DSD interprets this as the date the letter was posted.

If still dissatisfied, then the person can appeal on a point of law to a Social Security Commissioner.

1.3.1 Varying a Jobseeker's agreement

A person may vary the Jobseeker’s agreement in agreement with the employment officer. Any variation must be in writing, agreed and signed by both parties.

If either the person or the employment officer does not agree, then the change can be referred to a decision maker in the same way as if either party had been unable to agree the original agreement.

If the decision maker believes that both the person's proposals and the employment officer’s proposals are reasonable and would qualify the person as being available for and actively seeking work, s/he must give preference to the person's proposals. The decision maker can give directions as to the terms on which the person and the employment officer must agree to vary the Jobseeker’s agreement. If a person does not sign the new agreement within 21 days, the decision maker can bring the Jobseeker’s agreement to an end with the result that the person will no longer receive JSA.

Again, both the person and/or the employment officer can ask for the decision to be revised by a different decision maker and a further appeal against that decision can be made to an appeal tribunal. However, if the first decision maker decided to end the Jobseeker’s agreement, the person will not get JSA while a revision or supersession is taking place nor while an appeal is waiting to be heard (unless hardship payment is applicable).

The tribunal has similar powers where parties cannot reach agreement on the variation of a Jobseeker’s agreement. If a person fails to comply with the tribunal direction within a prescribed period (21 days), the decision maker may bring the agreement to an end, thereby ending entitlement to JSA.

1.4 Directions

An employment officer has the power to give a Jobseeker's direction (a written notice) at any time requiring a person to undertake a specific activity with a view to achieving one of the following:

A person may be directed to improve her/his employability by, for example, attending a course to improve jobseeking skills. A direction may be used to enforce what is already contained in the Jobseeker’s agreement, but may also require an additional act or step to be undertaken by a person. Failure to carry out a reasonable direction, without good cause, will result in the loss of benefit (see 5.1). There is no direct appeal against a Jobseeker’s direction but if a person is sanctioned for failing to comply with it s/he can appeal to an appeal tribunal.

1.5 Capable of work

In order to claim JSA a person must be capable of work. Incapacity for work is decided through the tests for Incapacity Benefit and is a matter for the decision maker. The person's opinion as to her/his capacity for work is immaterial.

A person will continue to be treated as capable for work if s/he is ill for less than two weeks unless:

1.6 Remunerative work

A person cannot receive JSA if s/he works on average sixteen hours per week or more (see 3.1.3 if claiming JSA(IB) and a member of a couple). Remunerative work is work that is done for payment or in expectation of payment.

A person will not be treated as engaged in remunerative work in certain situations including where s/he is:

1.7 Relevant education

A person cannot receive JSA if s/he is:

Also, people under nineteen in approved unwaged training not subject to a contract of employment (ie arrangements made by the Department For Employment and Learning in relation to Access and Jobskills training traineeships) or those aged nineteen on or after 10 April 2006 but under 20 whose training started before reaching nineteen also count as being in full-time relevant education.

Whether or not an education course is full-time is a complicated matter. Part-time students will normally be able to claim JSA. For full details see Students and Benefits, produced by the Adult Learner Finance Project (NI) in association with Law Centre (NI).

1.8 Pensionable age

To claim JSA, men must be under 65 and women under 60.  From 6 October 2003, a man aged between 60 and 65 will be able to choose whether to claim JSA(IB) or Pension Credit (PC).  A person who transfers from JSA(IB) to PC may have transitional protection (see section 8).

1.9 Resident in Northern Ireland

To claim JSA, a person must be ordinarily resident in Northern Ireland , although some temporary absences are ignored, eg attending an interview for employment and the absence is for seven days or less.

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2. CONTRIBUTORY JSA

A person may claim JSA(C) if s/he satisfies all the common rules and:

If a person does not qualify for JSA(C), or does but needs additional benefit (for partner and/or housing costs) s/he may qualify for JSA(IB).

2.1 Contributions and credits

In order to be entitled to JSA(C) a person must have paid a certain amount of national insurance contributions and/or credits. These contributions must be of the sort paid by employees (Class 1 contributions).

Class 1 contributions are paid as a percentage of wages, and the total wages on which a person pays contributions in a year is called the earnings factor. For example if Mr X earned £100 per week for 52 weeks, his earnings factor for the year would be £5,200. Contributions are not paid on earnings below a certain figure. This is known as the Lower Earnings Limit (LEL).

Between the LEL and the primary threshold, a person does not have to actually pay national insurance contributions but will be treated as having done so.  Earnings on or above the primary threshold require that contributions must be paid.  Contributions treated as paid are deemed the same as contributions actually paid.

If looking for work and signing on, a person will be awarded national insurance credits. One credit is awarded for each week of unemployment. Each credit has an earnings factor equal to the LEL which applies in the year the credit is awarded (in 2007/2008, it is worth £87 per week). Credits can assist in satisfying the second contribution condition of entitlement to JSA(C).

2.1.1 Contribution years

The National Insurance system has different start dates for contribution years and benefit years. The benefit year starts on the first Sunday in January each year, and ends on the day before the first Sunday of the next year. The contribution year starts on 6 April of one calendar year, and ends on 5 April of the following calendar year.

Both contribution conditions for JSA(C) require that contributions be paid or credited in the last two contribution years. These are the contribution years which are completed before the start of the benefit year in which the claim is made.

For example, if a person claims JSA(C) in October 2007, the last two complete contribution years will be 6 April 2004 to 5 April 2005, and 6 April 2005 to 5 April 2006. Contributions in these years, and these years only, determine entitlement to JSA(C). If a person claims JSA(C) in February 2008, the last two complete contribution years will be 6 April 2005 to 5 April 2006 and 6 April 2006 to 5 April 2007.

2.1.2 Contribution conditions

The first condition for qualification for JSA(C) is that a person must actually have paid contributions with an earnings factor of 25 times the LEL in one of the last two contribution years. The LEL in 2004/2005 was £79, so 25 times the LEL is £1,975. The LEL in 2005/2006 was £82 so 25 times the LEL is £2,050. Therefore, to pass this condition, a person claiming in 2007 would have to have earned and paid contributions on at least £1,975 in 2004/2005 or £2,050 in 2005/2006. Credited contributions do not count for this condition.

The second condition is that a person must have paid or been credited with contributions with an earnings factor of 50 times the LEL in both of the last two contribution years. For a claim in 2007, the two contribution years would be 2004/2005 and 2005/2006. Fifty times £79 is £3,950, so if a person earned, and paid contributions on, £3,950 in 2004/2005, the second condition for the year 2004/2005 would be satisfied.

For 2005/2006, a person must have earned and paid contributions with an earnings factor worth at least £4,100 (£82 x 50). Again, credits can be combined with paid contributions to satisfy the test. Alternatively, in either year, a person might have earned and paid contributions on at least £1,975 (and so satisfied the first condition) and then received 25 credits, making the contribution record up to the sum needed. As a further possibility, a person could have been incapable of work for one contribution year and received 50 credits for the next year, thereby satisfying the condition for that year.

2.1.3 Delaying a claim

If a person fails to satisfy the contribution conditions in a particular benefit year, but would satisfy them in the next benefit year, it is possible to delay claiming benefit until the next benefit year starts and thus be awarded benefit. The important day for contribution conditions is the first day of the jobseeking period (JSP) which only starts when a claim for benefit is made.

Suppose a person becomes unemployed in November 2007. Assume the second contribution condition for 2004/2005 is not satisfied, but will be for 2005/2006 and 2006/2007. S/he also satisfies the first condition for 2005/2006. If a claim for JSA(C) is made in November it will be disallowed because the claim in 2007 fails the contribution conditions. However, if the person waits until after the first Sunday in 2008 before claiming, then the first day of the JSP will be in the benefit year 2008 and JSA(C) will be awarded.

Where a person actually claims in November and is refused benefit because s/he fails the contribution conditions, s/he must stop claiming for more than twelve weeks and then make a fresh claim. The twelve week gap would end the current JSP.

2.2 Prescribed amount of earnings

A person may claim JSA(C) if s/he is working less than sixteen hours per week and earning less than the prescribed amount. The prescribed amount of earnings is calculated by adding the person's relevant age related amount of JSA(C) to the relevant earnings disregard and subtracting one penny.

For example, for someone over 25 with a £5 disregard, the prescribed amount would be £59.15 + £5 - £0.01 = £64.14. If in any one week a person earns more than her/his prescribed amount, s/he will not be entitled to JSA(C) and that week will not count towards her/his maximum 182 benefit days.

2.3 Trade disputes

A person is not entitled to JSA where there is a stoppage at work which is due to a trade dispute unless s/he proves s/he is not directly interested in the dispute.

2.4 Rates of benefit                

JSA(C) is paid at a basic rate of personal allowance dependent on age, less any earnings or occupational pension minus the relevant disregards.

Personal allowance

Under 18         £35.65

18 to 24           £46.85

25 and over     £59.15

There is no increase paid for partners or child dependants.

JSA(C) is not paid for the first three days (known as waiting days) unless it is claimed within twelve weeks of claiming Income Support, Incapacity Benefit or Carer’s Allowance (CA) or linked to a previous jobseeking period (ie a period when the person satisfies the common rules) or claimed by sixteen or seventeen year olds or joint couples in special circumstances. JSA(C) is paid for a total of 182 days (26 weeks). It is paid for seven days a week. Any breaks of less than twelve weeks are linked together. A person cannot re-qualify for JSA(C) based on contributions paid in the same two contribution years. S/he must wait until the beginning of a new benefit year before s/he can claim again.

2.4.1 Pensions

The amount of JSA(C) payable is reduced by any amount of occupational pension or personal pension over £50 per week, irrespective of a person’s age.

2.4.2 Earnings disregard

For JSA(C), £5 per week of earnings is disregarded except where a person is a share fisherman or an auxiliary coastguard or part-time fire-fighter or part-time lifeboat crew or a member of the Territorial Army Reserve when £20 is disregarded. JSA(C) will be reduced pound for pound by the amount of earnings received over the disregarded amount. Earnings of a partner are ignored for JSA(C).

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3. INCOME-BASED JSA

JSA(IB) is paid to a person who is required to sign on as available for work and can be paid as a top-up to JSA(C) and/or when JSA(C) is ended.

3.1 Who can claim?

To qualify for JSA(IB), a person must satisfy all of the common rules and the conditions outlined below. A person in receipt of PC cannot claim JSA(IB).

3.1.1 Must be aged sixteen or over

A young person aged sixteen or seventeen who has left school will not normally be entitled to JSA(IB), however there are some circumstances in which s/he can claim.  A payment can be made to a sixteen or seventeen year old where this will prevent severe hardship.

A young person aged under sixteen can never claim JSA(IB) for her/himself. A sixteen or seventeen year old who qualifies for Income Support because s/he is not required to sign on as available for work (eg lone parent) can choose to register as available for work and claim JSA(IB) instead.

3.1.2 Must not have capital over £16,000

JSA(IB) is not payable to a person if s/he and/or partner have capital over £16,000. Where a person is permanently in residential care, nursing home or other type of residential accommodation, s/he will also lose entitlement if s/he has over £16,000 in savings/capital.

The legislation sets out what counts as capital and what can be ignored.

Personal possessions (other than those which would be considered an investment, eg an art collection) and the person's home will not normally be included as savings/capital. Included on the list of items not normally counted as savings/capital is any payment made to a person as the holder of a Victoria or George Cross medal.  The surrender value of any insurance policies and certain other savings can be ignored in specific circumstances.

A person can still be treated as possessing capital where s/he has deprived her/himself of this capital in order to secure or increase entitlement to JSA(IB).

There are complex rules regarding the assessment of capital, for further information see Child Poverty Action Group’s Welfare Benefits and Tax Credits Handbook.

3.1.3 Must not be in remunerative work

JSA(IB) will not be paid if a person works sixteen or more hours per week or her/his partner works 24 hours or more per week. However, a person who takes up full time employment may be able to get mortgage interest run on for up to four weeks (see 3.2.1.4).

Note: see 1.6 for occupations not regarded as remunerative work.

3.1.4 Habitual residence 

For entitlement to JSA(IB), a person must be habitually resident and have a right to reside in the United Kingdom , Republic of Ireland , Channel Islands or Isle of Man. The test applies to any person claiming (but not partner or dependants) including a British or Irish citizen returning to Northern Ireland . Other groups are also automatically treated as habitually resident, including people who are treated as workers within specific pieces of European legislation and are citizens of the European Economic Area (ie, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Iceland, Luxembourg, Netherlands, Norway, Portugal, Republic of Ireland, Spain, Sweden, and UK), refugees, and people who have been granted new forms of leave outside of the immigration rules - humanitarian protection and discretionary leave. On 1 May 2004, the European Union expanded to include Cyprus , the Czech Republic , Estonia , Hungary , Latvia , Lithuania , Malta , Poland , Slovakia and Slovenia . In response to this, the habitual residence test was amended so that no person will be treated as habitually resident unless s/he has a right to reside in the UK , Republic of Ireland , Channel Isles or Isle of Man. This is likely to affect the entitlement to JSA(IB) of work seekers and, in some instances, workers from the new accession states.

From 30 April 2006, legislation provides for a new right to reside for all EC nationals and family members for the first three months of their stay in the UK , provided they hold a valid identity card or passport. EC nationals, including A8 nationals, who reside solely on the basis of this right (or equivalent Home Office legislation), will not pass the right to reside part of the habitual residence test. Separate rules govern entitlement of A8 nationals to JSA(IB) where a person loses her/his job. For more details, contact Law Centre (NI).

On 1 January 2007 Bulgaria and Romania joined the EU and new rules provide that no national of these countries will be treated as habitually resident unless s/he is subject to the worker authorisation scheme and is treated as a worker under the legislation which governs this scheme.

If a person is turned down for JSA(IB) because of the habitual residence test, s/he should contact Law Centre (NI).

3.1.5 Must not be subject to immigration control

A person is ‘subject to immigration control’ if s/he is not an EEA national and:

3.2 How much?

The amount of JSA(IB) payable is calculated by subtracting a person's resources (ie income) from her/his needs (ie the weekly amount a person and her/his partner are considered to need, weekly, to live on). From 6 April 2004, dependent children are not included in the calculation of JSA(IB) for new claims. See section 8 for transitional arrangements.

3.2.1 Needs

In calculating a person's needs, three elements are taken into account:

3.2.1.1 Personal allowances

These are fixed amounts which cover basic weekly living expenses including food, fuel, clothing, laundry, etc. The qualifying amount depends on age, whether the person is single, a lone parent or in a couple. Personal allowances for children and qualifying young people are not included in JSA(IB) for new claims from April 2004.  See section 8 for transitional arrangements.