Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
cestlavielife · 05/08/2025 13:10

You did get benefits.
The amount etc you can complain to your mp.

20thcenturygirlwithherhandsonthewheel · 05/08/2025 13:09

HoskinsChoice · 05/08/2025 12:38

Yes, that's correct, (unless you need it, which you don't). It's called society. Thankfully there are greater numbers of people in society that understand this better than you and who are, well frankly, just nicer and less greedy than you. Although sadly, I think this level of selfish entitlement is on the rise. You are not alone.

I’m not greedy for wanting benefits when unemployed, when I have paid into the system for 30 years: do you think pensioners are greedy when they take their state pension?

OP posts:
20thcenturygirlwithherhandsonthewheel · 05/08/2025 13:06

cestlavielife · 05/08/2025 13:03

And you did get money.

on top of your savings you got a bonus amount .

But over the tax year it is subject to tax so if your total earnings in tax year over your personal allowance yes you get taxed.

If you were renting and got rent paid you would have no capital asset to sell in future.

It’s not a bonus amount; it’s what I was entitled to for paying NI and tax for 30 years.

OP posts:
Melancholyflower · 05/08/2025 13:06

20thcenturygirlwithherhandsonthewheel · 05/08/2025 12:30

and I agree that your son should have those benefits.

but there are plenty, plenty of people gaming the system, claiming to have (or their kids have) disability. and plenty claiming that they don’t work; or they don’t live with their partner etc etc

Oh absolutely agree, there are so many people who claim not to be able to do any work at all, when they could, but just don’t want to. The reality is that for a lot of those people their earning potential isn’t vastly different, so why bother, whereas if you are in a profession paying six figures, you’re unlikely to give up work to live on benefits.

cestlavielife · 05/08/2025 13:03

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

And you did get money.

on top of your savings you got a bonus amount .

But over the tax year it is subject to tax so if your total earnings in tax year over your personal allowance yes you get taxed.

If you were renting and got rent paid you would have no capital asset to sell in future.

HoskinsChoice · 05/08/2025 12:38

20thcenturygirlwithherhandsonthewheel · 05/08/2025 12:20

I don’t know, I think I’m just expected to contribute but never take anything

Yes, that's correct, (unless you need it, which you don't). It's called society. Thankfully there are greater numbers of people in society that understand this better than you and who are, well frankly, just nicer and less greedy than you. Although sadly, I think this level of selfish entitlement is on the rise. You are not alone.

20thcenturygirlwithherhandsonthewheel · 05/08/2025 12:30

Melancholyflower · 05/08/2025 12:14

It is a welfare system and provides for those who, for whatever reason, cannot earn enough to live on (amount determined by the government obviously and not necessarily accurate).
My son has a lifelong disability, cannot live independently and will always rely on benefits to live. He cannot do anything to improve his 'lot', but even though he qualifies for the highest level of disability benefits (severe disability), he is expected to pay hundreds of pounds a month, out of the amount he is assessed to need to live on, towards his care costs.
No he hasn't contributed anything to the system, though we and our family obviously have, but forgive me for not feeling sorry for people with higher earning potential not being 'rewarded' with higher benefits.

and I agree that your son should have those benefits.

but there are plenty, plenty of people gaming the system, claiming to have (or their kids have) disability. and plenty claiming that they don’t work; or they don’t live with their partner etc etc

OP posts:
20thcenturygirlwithherhandsonthewheel · 05/08/2025 12:28

Doggymummar · 05/08/2025 12:21

Oh well that makes a massive difference then.

Remember that the maximum statutory redundancy is only around £21k. So no guarantee that even if I had been in the same company 30 years, that I would get a months salary for each full year worked.

OP posts:
Mavvera · 05/08/2025 12:24

Doggymummar · 05/08/2025 07:55

That's not the case though. I have just been made redundant and my partner has to fund me. I can't claim housing benefit for my half of the rent etc. I will be able to claim unemployment benefit when my garden leave runs out though. After 30 years service did you not have about three years salary tax free? We got a month for every year worked plus the enhancement for being over 42. Although I won't get that for several months have to do garden leave first

Your salary must be quite low because you pay tax on redundancy over £30k. It's certainly not all tax free, so I hope you don't get a nasty shock.

Doggymummar · 05/08/2025 12:21

20thcenturygirlwithherhandsonthewheel · 05/08/2025 07:58

Well no, I only worked at this employer for 2 years so I recieved a paltry minimum amount of redundancy pay.

i worked 30 years across multiple companies.

Oh well that makes a massive difference then.

20thcenturygirlwithherhandsonthewheel · 05/08/2025 12:20

Mavvera · 05/08/2025 11:43

Lost the room?? Everyone, however much savings or income is entitled to contribution based JSA (New Style JSA) as long as they have paid the appropriate NI. Some people need to claim so they get the NI credits.

I don’t know, I think I’m just expected to contribute but never take anything

OP posts:
Melancholyflower · 05/08/2025 12:14

AlastheDaffodils · 05/08/2025 07:32

I suspect OP would line to see a system in which contribution-based JSA is enough to live on, is higher for people who have paid NI for decades than for people who haven’t, is not means tested, and is linked to your previous salary so people who have paid more in get a little more out. That’s not an absurd ask, it’s essentially the system in other European countries. But it’s very different to the way the UK system works now.

It is a welfare system and provides for those who, for whatever reason, cannot earn enough to live on (amount determined by the government obviously and not necessarily accurate).
My son has a lifelong disability, cannot live independently and will always rely on benefits to live. He cannot do anything to improve his 'lot', but even though he qualifies for the highest level of disability benefits (severe disability), he is expected to pay hundreds of pounds a month, out of the amount he is assessed to need to live on, towards his care costs.
No he hasn't contributed anything to the system, though we and our family obviously have, but forgive me for not feeling sorry for people with higher earning potential not being 'rewarded' with higher benefits.

RantzNotBantz · 05/08/2025 12:11

OP: You feel aggrieved as a net contributor (you assume) but maybe track where your income comes from.
Somewhere down the line your money comes from customers or clients with less money than you, from whom you or middle chain, make a profit. Those on NMW, those on standard tax codes. etc etc. If you make money from those richer than you - where does their money come from?

Well done for finding a replacement job, keep paying your N.I so that there IS a NHS and pension for you.

Maverickess · 05/08/2025 11:54

Well, I'm one of those people who have spent everything I've earned, I mean I likely don't earn anywhere near as much as you (your £16k savings are over half my annual salary.so unless I'm not paying something pretty important, it's highly unlikely I'd be able to) and I don't have a mortgage because couldn't afford one of those either.

I've paid in too, and I've always worked (money doesn't land in my bank account magically either!), and rather than not bothering to save, the wage I'm paid is taken up with basic living expenses. Surely you must know that people don't always earn enough to buy a house and save £16k? That it's not a level playing field in that respect, so I likely spend less than you do anyway but still don't have the means to have the cushion you do? It's not as simple as well everyone who doesn't have a mortgage or savings fritters away what you've saved or invested, some don't have that to save or invest to start with.

I'd be eligible because I don't have what you do, despite always working ft. If I lost my job and needed benefits, yes I'd get housing support because I rent and benefits because my savings are lower than yours, if you lost your house (and I'm not in any way minimising that, it would be awful) you've got the option to rent, and get housing support, you have the £16k to supplement the paltry benefits.
I don't have another option to use if I can't pay my rent except the streets. And I don't have savings to supplement that paltry amount and get the bills paid, so I'm likely to have a worse outcome than you even if I get benefits and housing support but you don't.

anniegun · 05/08/2025 11:49

Moaning about your benefits whilst complaining that other people are getting benefits is the most hypocritical attitude I have seen for a long time on these threads

Rewis · 05/08/2025 11:46

My bf was unemployed last year/early this year. He normally gets a new contract quickly but this time nobody was hiring so he had to apply for job seekers allowance. And i was actually quite suprised how little it was cause I had kinda always thought that benefits were relatively generous. Or that he wasn't allowed to leave the country (for a few days). Well he has a job now and has almost paid ofd his credit card debt that was acquired from that time.

HoskinsChoice · 05/08/2025 11:44

20thcenturygirlwithherhandsonthewheel · 05/08/2025 10:10

I’m not wanting a higher tax free allowance. If it was income based JSA I wouldn’t be paying any tax on it. What I do want is to recieve a decent amount of jobseekers allowance seeing as I’ve been paying NI and tax for 30 years. I am one of the tax payers.

JSA is too low, I agree. But one of the reasons it is too low is that it is spread too thinly across people that need it and people that don't but claim it anyway. If people with thousands of pounds worth of savings didn't claim it, we could afford to give the people who are genuinely struggling a proper amount.

Mavvera · 05/08/2025 11:43

Liondoesntsleepatnight · 05/08/2025 09:19

You’ve lost the room by claiming JSA when you had savings.

Within the tax year you must have used your tax free allowance, so any income is taxed. You won’t get any sympathy here.

Lost the room?? Everyone, however much savings or income is entitled to contribution based JSA (New Style JSA) as long as they have paid the appropriate NI. Some people need to claim so they get the NI credits.

startofbetterlife · 05/08/2025 11:40

I didn't know this! My husband was made redundant and was unemployed for roughly 4 months. Lost the tax free childcare element for working parents so faced higher bills on top of managing all other bills on just my salary. Don't blame you for being pissed, I certainly am! Will look out for that letter :(

BIossomtoes · 05/08/2025 11:36

20thcenturygirlwithherhandsonthewheel · 05/08/2025 11:23

Ah, so you want the government to uphold their side of the bargain, but I’m greedy for wanting the same for me?

Did I say that? Did you even read the post you quoted?

20thcenturygirlwithherhandsonthewheel · 05/08/2025 11:23

BIossomtoes · 05/08/2025 11:16

It’s taxed. There’s nothing “lucky” about paying NI contributions for the best part of 50 years and then the government fulfilling its side of the social contract. You take great exception to anyone referring to your “luck” and are correspondingly envious of other people’s.

Ah, so you want the government to uphold their side of the bargain, but I’m greedy for wanting the same for me?

OP posts:
20thcenturygirlwithherhandsonthewheel · 05/08/2025 11:22

BIossomtoes · 05/08/2025 11:19

I know it and I’ve always worked and never claimed it. How did I manage it and she didn’t?

It’s not something that I’ve had to know to be fair!

OP posts:
20thcenturygirlwithherhandsonthewheel · 05/08/2025 11:21

TheFancyDuck · 05/08/2025 11:11

Have I called you names? There are many I could think of. I do get a state pension, I also started working at 15. It was completely legal to pay me less than a male doing the same job. I had 6 weeks maternity leave. My employer was under no obligation to take me back after that. My NI contributions paid for the pensions of people older than me in the same way that your contributions help to pay for mine. If you don't think that you will get a pension look to blame people younger than you, not older. They are the ones who will decide not to pay it.

No; you haven’t called me names. Boomer is a reference to a generation: not an insult!

and the Boomer generation were very fortunate that they got to receive a decent state pension, many of them from the age of 60. Many have took more than they ever put in

at the earliest I will receive one at 67. But, that looks increasingly unlikely

OP posts:
BIossomtoes · 05/08/2025 11:19

fthisfthatfeverything · 05/08/2025 11:17

Why would she if she’s always worked and never had to claim it?

I know it and I’ve always worked and never claimed it. How did I manage it and she didn’t?

fthisfthatfeverything · 05/08/2025 11:17

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.

Why would she if she’s always worked and never had to claim it?