To think paying tax on jobseekers allowance is just crap

[20thcenturygirlwithherhandsonthewheel]

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

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

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

Nor have I but I knew that was the case.

It says here it is taxable.

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

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.

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.

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.

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

So what would you like to see?

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.

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.

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

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

Today agree with you Op.

You clearly don’t contribute much to society.

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

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.

actually, you are probably correct. DHs earnings would probably mean no UC.

People can get generous benefits if they pretend to have anxiety?

What benefits?

what’s the criteria for being awarded?

And if the rules are so soft, anyone can claim benefits for anxiety?

Not having a job will be stressful, so depending on what you state the criteria to be, maybe more people can claim it.

Ah, here we go....

That’s always going to be the case. If you have very little you get more hand outs from the state (but will likely still be worse off than you are now).

I keep reading your posts on various threads and have come to the conclusion that you’re in the wrong job. Surely you’re not supposed to gossip about your clients on social media?

I have actual anxiety and I am not rolling in it. Far from it. I must be doing benefits wrong. I would rather not have MH issues than the money. In a heartbeat.

On an anonymous forum. What a ridiculous thing to say. And yes I am in the wrong job and trying to get out of it .

But that's because OP budgeted. If she'd gone on holidays, smoked and drunk it all away, she'd get the money she threw away then the free money!