The question of whether Jobseeker’s Allowance (JSA) is means tested is one of the most common and important queries for anyone in the UK facing unemployment.
Confusion often arises because the benefit has changed significantly over time.
The main point to understand is that the version of JSA available to new applicants today, known as New Style Jobseeker’s Allowance, is not means tested.
This current form of JSA is a contribution based benefit.
This means that your entitlement is determined by your work history and the National Insurance contributions you have paid as an employee over the previous two to three tax years.
Therefore, your personal savings, as well as the income or savings of your partner, will not affect whether you qualify for New Style JSA or how much you are paid.
This distinction makes it a valuable safety net, especially for people who might have savings over the £16,000 threshold that would usually disqualify them from the main means tested benefit, Universal Credit.
What are the main eligibility rules for New Style Jobseeker’s Allowance?
Eligibility for New Style JSA is set by the government and focuses on your work history and ability to look for a job.
You must satisfy every one of the following criteria to be eligible:
- Age: You must be 18 or over and under the State Pension age.
- Location: You must live in England, Scotland, or Wales.
- Work Status: You must be unemployed or work less than 16 hours per week on average.
- National Insurance: You must have worked as an employee and paid, or been credited with, enough Class 1 National Insurance contributions in the two full tax years before the benefit year you are claiming.
- Availability: You must be available to start work immediately.
- Job Seeking: You must be actively looking for work and meet the requirements set out in your Claimant Commitment.
- Health: You must not have an illness or disability that completely prevents you from working.
Will my savings or partner’s earnings ever affect my Jobseeker’s Allowance claim?
For New Style JSA, your personal savings, and the income or savings of your partner, are not considered.
You can have unlimited savings and a partner who works full time, and still be eligible if you meet the National Insurance requirements.
However, certain forms of your own income, such as money you receive from a private or occupational pension, can reduce the amount of New Style JSA you are paid.
The same rule applies if you have earnings from any part time work you may be doing while claiming.
What is the difference between JSA and New Style JSA?
The difference lies in how they are funded and assessed.
The benefit known as Income based Jobseeker’s Allowance was means tested, meaning your household income and savings were fully assessed.
However, new claims for this type of JSA have been abolished and replaced by Universal Credit.
New Style JSA is contribution based and is the only type of JSA you can apply for now.
It is not means tested, and it is paid at a flat rate to help you while you look for employment.
How do National Insurance contributions determine eligibility?
Your National Insurance record is what determines whether you can receive New Style JSA.
The Department for Work and Pensions (DWP) checks your Class 1 contributions, which are paid when you are an employee.
You must have paid enough contributions over the two relevant tax years.
National Insurance credits, which you may have been awarded while claiming other benefits like Child Benefit, can also count towards your entitlement.
If you were self employed and only paid Class 2 National Insurance, you generally will not qualify for this benefit.
Can I claim New Style JSA at the same time as Universal Credit?
Yes, you can claim both New Style JSA and Universal Credit at the same time.
Many people choose to do this because the two benefits serve different purposes.
New Style JSA is a flat rate payment based on your work history, while Universal Credit is a means tested benefit that can provide extra payments for living costs, housing, and children.
If you receive both, your New Style JSA payment will be counted as income when the DWP calculates your Universal Credit award, which will reduce your Universal Credit payment amount.
How much New Style Jobseeker’s Allowance can a claimant receive?
The amount of New Style JSA you receive is paid at a fixed, maximum weekly rate determined by the government for the current tax year.
It is not based on your previous salary or your household size.
The current maximum weekly rates are:
- Up to £72.90 per week if you are aged 24 or under.
- Up to £92.05 per week if you are aged 25 or over.
This payment is made every two weeks directly into your bank account.
The payment may be reduced if you have part time earnings over a small limit or if you receive a pension.
How long is the maximum period I can receive a New Style JSA?
New Style JSA is designed to offer short term support while you are actively seeking employment.
You can usually receive this benefit for a maximum period of 182 days, which is approximately six months.
Once you have reached this limit, the payments will stop.
If you have still not found work, you would then need to consider applying for Universal Credit if you meet the necessary means tested requirements.
What is the application process for New Style JSA?
The application for New Style JSA is made online through the official GOV.UK website.
The application process involves these key steps:
- Online Claim: Complete the application providing your National Insurance number, bank details, and employment history for the last six months.
- Jobcentre Interview: You will be contacted by the Department for Work and Pensions (DWP) to attend an interview at your local Jobcentre Plus office.
- Claimant Commitment: At the interview, you will agree to a Claimant Commitment, which is a formal record of the work related activities you must undertake to keep receiving the benefit.
Once your claim is approved and the commitment is in place, payments will begin, usually after a waiting period of seven days.
