In the United Kingdom Jobseeker's Allowance (JSA), colloquially known as The Dole,[1] 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). It is a working age benefit, and is generally available only to those aged 16-60[2].
There are two forms of Jobseeker's Allowance, contribution-based and income-based.
To be eligible to make a claim for JSA the claimant must 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 two weeks (fortnightly) thereafter to "sign on". Receiving Jobseeker's Allowance is therefore also known colloquially as "signing on".
The Republic of Ireland has its own version of Jobseekers Allowance[3] which is also colloquially know as The Dole.(see unemployment benefit section Ireland).
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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History
The first Unemployment Benefits were made from 1911 [4], to jobseekers who had paid National Insurance contributions ('the stamp'). These payments were thus made only 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.
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, Employment and Support Allowance (previously Incapacity benefit), Bereavement benefit, Carer's allowance and JSA(C) 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).
JSA(C) may be claimed for only 26 weeks before having to move onto JSA(IB), if eligible (see below).
Income-based Jobseeker's Allowance
People who are not eligible for JSA(C) may claim 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). JSA(IB) is payable only if the claimant has less than £16,000 in savings (correct as of July 2006). Payments are 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[specify] (the disregard) and are withdrawn from those working sixteen or more hours a week (though this does not apply to voluntary work). Part time students can claim so long as they don't have more than sixteen hours a week in teacher contact time and if the course is not officially designated as Full Time by the college (irrespective of the number of hours of contact time).
Sanctions
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, the 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 claim should be backdated, if any.
- Missing a Restart interview: the claim will be terminated unpaid, back benefit entitlement will be lost, and the claimant 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.
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.
Over 60
Claimants reaching the age of 60 are still eligible to claim Jobseeker's Allowance, although they must remain actively looking for work. If a claimant 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.
See also
External links
References
- ^ 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.
- ^ At age 60 it is normally better to claim Pension Credit
- ^ http://www.citizensinformation.ie/categories/social-welfare/social-welfare-payments/unemployed-people/jobseekers-allowance>
- ^ National Insurance Act 1911
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