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AIBU?

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Original poster

To think paying tax on jobseekers allowance is just crap

267 replies

20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:20

I was made redundant a few months ago. I have worked just under 30 years and never claimed any benefits before. DH and I have always saved to make sure that we have money aside just in case of emergencies (especially as housing benefits don’t pay the mortgage), so we have over £16k in savings and can’t claim anything means tested.

fair enough.

the only benefit I could claim when unemployed was contribution based jobseekers allowance: a massive £93 a week that I could only claim for 6 months.

thankfully I was only unemployed for 8 weeks. But to my surprise I’ve just recieved a letter from HMRC telling me that the paltry £93 a week was taxable. So really; probably will end up about £70 a week.

really pissed off: being putting money in the kitty for 30 years but getting so little when we needed it

OP posts:
MickGeorge22 · 04/08/2025 23:18

MustTryHarderAndHarder · 04/08/2025 23:08

But they are generous if yo have a disability which is why people pretend that they have anxiety etc.

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I did a benefit check for a couple the other day. Couple in their 60's , owned their own home outright, one still working part time , one getting UC LCWRA and PIP. It came out with £1600 per month in benefits ( UC and standard PIP ) then part time earnings on top. I was quite shocked considering no rent being paid. They still weren't happy and were looking for more.

Original poster
20thcenturygirlwithherhandsonthewheel · 04/08/2025 23:17

MustTryHarderAndHarder · 04/08/2025 23:08

But they are generous if yo have a disability which is why people pretend that they have anxiety etc.

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Ironically I do have a disability: never tried to claim PIP or anything as I have been able to work with adjustments from employers.

OP posts:
SaulHudsonDavidJones · 04/08/2025 23:15

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

You clearly don’t contribute much to society.

SaulHudsonDavidJones · 04/08/2025 23:10

20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:26

Why shouldn’t I claim as I have paid tax and ni for 30 years? those savings would quickly run out if I didn’t find a job reasonably soon; as I need to pay mortgage.

Meanwhile; if I spent every penny I earned and just and rented, I would be recieving full universal credit, housing benefit, child tax payment, council tax refund etc etc

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Today agree with you Op.

MustTryHarderAndHarder · 04/08/2025 23:08

Loadsapandas · 04/08/2025 22:37

Are you saying benefits/welfare state should be increased?

I’m inclined to agree tbh, I don’t understand how anyone can live of £93 pw especially if they don’t have savings.

So many ppl complain about benefits being too generous when in fact the reality isn’t great as you’ve found out.

For the record, I’m grateful I’ve never had to claim but have always been aware of how shit it would be if I was unemployed.

But they are generous if yo have a disability which is why people pretend that they have anxiety etc.

titchy · 04/08/2025 23:08

20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:33

can you genuinely not understand why I’m annoyed to pay for others to recieve benefits, yet what I recieve when I need them is very limited.

If my savings ran out; then I would lose my home. Whereas if I was renting I would get housing benefit.

If you lost your home and went into rented you’d get HB too….

MickGeorge22 · 04/08/2025 23:06

20thcenturygirlwithherhandsonthewheel · 04/08/2025 23:02

i really am. If I had spent every penny I earned; I’d be getting much more in benefits!

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Would you though ? It would depend on your partners earnings, how many kids you have etc. If you have a mortgage and an earning partner the threshold for UC could be pretty low for you getting anything. I do agree with you that it's crap though. I will be in this situation next year and will be reliant on my dh wheras I never have been previously.

MickGeorge22 · 04/08/2025 23:05

There is talk of contributions based JSA and ESA being merged into a time limited ( but likely longer than 6 months) insurance payment within the next few years. This will likely be better for those losing their jobs as will be paid at a higher rate than £92 a week.

cakeorwine · 04/08/2025 23:04

20thcenturygirlwithherhandsonthewheel · 04/08/2025 23:02

i really am. If I had spent every penny I earned; I’d be getting much more in benefits!

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So what would you like to see?

Original poster
20thcenturygirlwithherhandsonthewheel · 04/08/2025 23:02

XenoBitch · 04/08/2025 23:01

You are not punished for being prudent. If you have savings etc, then you do not need state support.
Welfare in the UK is not a reward, or some savings account... it is a safety net.

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i really am. If I had spent every penny I earned; I’d be getting much more in benefits!

OP posts:
XenoBitch · 04/08/2025 23:01

20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:59

it feels a bit like being “punished” for being prudent.

meanwhile I know a few people who have either never or barely worked in their lives, claiming all the benefits they can for themselves and their kids.

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You are not punished for being prudent. If you have savings etc, then you do not need state support.
Welfare in the UK is not a reward, or some savings account... it is a safety net.

Original poster
20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:59

AlastheDaffodils · 04/08/2025 22:56

In some countries (Denmark for example) unemployment benefits are linked to your previous salary and contribution history. People who previously had bigger salaries, or who have worked and contributed for longer, get better unemployment benefits - up to 90% of their previous salary. Personal savings are irrelevant. In the UK we effectively have the opposite system - if your previous job allowed you to build up savings you’ll be given lower or no benefits.

I’m not saying one system is better than the other. But OP is indisputably correct that the UK system penalises people like her, compared to a more insurance-based system with a strong contributory element.

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it feels a bit like being “punished” for being prudent.

meanwhile I know a few people who have either never or barely worked in their lives, claiming all the benefits they can for themselves and their kids.

OP posts:
AlastheDaffodils · 04/08/2025 22:56

cakeorwine · 04/08/2025 22:44

What did you expect and how much did you expect when you became unemployed?

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In some countries (Denmark for example) unemployment benefits are linked to your previous salary and contribution history. People who previously had bigger salaries, or who have worked and contributed for longer, get better unemployment benefits - up to 90% of their previous salary. Personal savings are irrelevant. In the UK we effectively have the opposite system - if your previous job allowed you to build up savings you’ll be given lower or no benefits.

I’m not saying one system is better than the other. But OP is indisputably correct that the UK system penalises people like her, compared to a more insurance-based system with a strong contributory element.

XenoBitch · 04/08/2025 22:54

It says here it is taxable.

https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

BIossomtoes · 04/08/2025 22:54

20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:43

Well; in fairness. I’ve never been unemployed before or had to claim benefits.

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Nor have I but I knew that was the case.

SoSoLong · 04/08/2025 22:53

Yanbu, it is pretty crappy that some benefits are taxable whilst others aren't. It makes no sense.

Original poster
20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:51

cakeorwine · 04/08/2025 22:48

But it's only taxed because your income this year will exceed the tax allowance.

If your income this year is below the tax allowance, then it wouldn't be taxed

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however, if it was income based JSA or universal credit, then it wouldn’t be taxable

OP posts:
Original poster
20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:50

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

It’s not “free money”. I’ve paid tax and NI for 30 years

OP posts:
samplesalequeen · 04/08/2025 22:49

20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:26

Why shouldn’t I claim as I have paid tax and ni for 30 years? those savings would quickly run out if I didn’t find a job reasonably soon; as I need to pay mortgage.

Meanwhile; if I spent every penny I earned and just and rented, I would be recieving full universal credit, housing benefit, child tax payment, council tax refund etc etc

Show quote history

I agree with you.

people forget that you have worked hard.

You have used benefits as a safety net and not a hammock which is exactly what they’re there for!

rainylake · 04/08/2025 22:49

But everyone is entitled to their personal allowance tax free before they start paying income tax, so unless you have already earned that you should get it tax free (or get a refund later)

cakeorwine · 04/08/2025 22:48

20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:46

Honestly, no idea how much I expected. But not £93 a week. And certainly not for that paltry amount to be taxed

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But it's only taxed because your income this year will exceed the tax allowance.

If your income this year is below the tax allowance, then it wouldn't be taxed

Original poster
20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:46

cakeorwine · 04/08/2025 22:44

What did you expect and how much did you expect when you became unemployed?

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Honestly, no idea how much I expected. But not £93 a week. And certainly not for that paltry amount to be taxed

OP posts:
MathiasBroucek · 04/08/2025 22:46

Loads of angry, unsympathetic people on here. It's crap that there's so little support for people who have a temporary problem. It doesn't mean others don't have it worse

cakeorwine · 04/08/2025 22:44

20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:42

Thanks for explaining this better than I could. NI was supposed to be an insurance that people pay in return for money in their time of need

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What did you expect and how much did you expect when you became unemployed?

Original poster
20thcenturygirlwithherhandsonthewheel · 04/08/2025 22:43

BIossomtoes · 04/08/2025 22:41

Everyone’s unemployment benefits count towards their tax allowance and have for as long as I can remember. I’m astonished you didn’t know this.

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Well; in fairness. I’ve never been unemployed before or had to claim benefits.

OP posts: