Should I claim JSA?

[Wincher]

I’ve recently taken voluntary redundancy and got a healthy payout. My husband is a high earner so we’re not going to starve any time soon. I’ve just found out that in fact I can claim JSA for six months without it being means tested. It feels a bit wrong to do so as I don’t need the money, but am I right in thinking it will cover my national insurance contributions if I do so? Or at least make it so there’s not a gap as such?
I’m not very actively applying for jobs right now as am ensconced in home schooling, but will step it up once the kids are back in a couple of weeks.

@SeasonsInTheAbyss

Sorry to jump on this My stepson is 20 and has been unemployed since last summer (he got the first furlough and made redundant afterwards). We have been helping him out with money because he said when he and his mother looked into JSA he hadn’t paid enough tax so couldn’t claim.

Is this the case because I didn’t think it was based on contributions any more.

JSA is based on contributions.

He can claim universal credit if he has savings of under £6000 or a reduced rate if he has savings between £6000 and £15000. It's not based on contributions

It's NI contributions it's based on, not tax.

@VanGoghsDog

It's NI contributions it's based on, not tax.

A lot of people don't make a distinction between the two.

I find it really annoying, but am trying to resist my pedantry.

DH claimed JSA after being made redundant, despite my earnings and our savings. Believe he was entitled to 6 months, contribution based and it also counts towards his NI record.

It wasn’t a big hassle, it was a couple of phone calls and he received £78 pw I think? He also got two month’s travel paid when he got a new job!

A lot of people don't make a distinction between the two.

I find it really annoying, but am trying to resist my pedantry.

Yes, well, despite your side swipe at me being "pedantic" it's an important distinction because the threshold for paying tax is quite a bit higher than for NI, so you could feasibly never have paid any tax but still have enough NI contributions for JSA (and other NI based benefits, like state pension) to kick in.

@Chewbecca

DH claimed JSA after being made redundant, despite my earnings and our savings. Believe he was entitled to 6 months, contribution based and it also counts towards his NI record.

It wasn’t a big hassle, it was a couple of phone calls and he received £78 pw I think? He also got two month’s travel paid when he got a new job!

You don't even need to make phone calls, I did all mine online. The only phone call I had to make was to stop it.

Yes, initial claim was online but the benefits office called him twice to check on progress job hunting, offer coaching etc.

Oh, right, they never called me, not once. I claimed for about nine weeks.

I was made redundant a couple of years ago

I Had to go to job centre in person to provide proof of identification, P45, redundancy & address etc
Had to sign on electronically into the UC system
I had to attend the job centre once a week with my work coach to sign on electronically
Plus update my UC diary with job applications
Luckily I managed to get a new job after a few weeks

I believe things have changed slightly due to covid

Plus if you have young children things are different

Also if you live a long distance from job centre

It's changed not just due to Covid, new style contribution based JSA doesn't require you to show any red pay, P45, previous earnings or anything. It's nothing to do with UC either.

The main difference due to Covid is that centres are closed and they don't make you go for interviews at the moment.

New style JSA is not means tested so your DH's wages and your savings won't be assessed. However if either of you have a private pension that will be taken into account.

You'll get £74 a week for maximum 26 weeks.

You claim online, then after a few weeks you'll get a text and a letter confirming entitlement. Then you'll get a phone call from your Jobcentre to build a 'claimant commitment' setting what type of work you are looking for and how you are looking for it. Then you'll get a telephone work search review appointment every two weeks, maximum. You won't have to go to the Jobcentre at all at the moment.

It really isn't the hassle that PPs are making out. If you are entitled, you should claim.

And yes, it will cover a class 1 National Insurance contribution.

@VanGoghsDog

It's changed not just due to Covid, new style contribution based JSA doesn't require you to show any red pay, P45, previous earnings or anything. It's nothing to do with UC either.

The main difference due to Covid is that centres are closed and they don't make you go for interviews at the moment.

Job centres are not closed and have not been closed at any point throughout Covid. They have been open for emergencies and for the vulnerable since day 1, though they are encouraging customers to use digital and telephone means as much as possible.

However if either of you have a private pension that will be taken into account.

They never mentioned pension to me. Do you mean a pension in drawdown? I think they asked about that on the application but they definitely didn't ask for details of my pension fund. Or is that age dependent or something?

Yes, sorry, I know they open for limited services.

"However if either of you have a private pension that will be taken into account."

Eh?!

Not true.

I should say, a pension that is actually being paid; not one you are still paying into.
Pensions ARE taken into account.

I think you're getting confused.
New-style JSA is based on NI contributions and is not means-tested; other income (including pension income) is disregarded.
Pensions and other income would be relevant for Universal Credit, though, as that's means tested.

Ah. I've just looked it up. You're right pension is relevant to new-style JSA. I do apologise. I'd never come across that before, very bizarre!

Private pension payments are definitely relevant to new style ESA so possibly the same rules as new style JSA ? Any pension amount of more than £85 a week reduces your JSA/ ESA.

@AnotherEmma

Ah. I've just looked it up. You're right pension is relevant to new-style JSA. I do apologise. I'd never come across that before, very bizarre!

It does seem an odd rule doesn't it. Promise I know what I'm on about though!

Never come across that before and I've given a lot of benefits advice.

I guess it's rare for someone claiming nsJSA (or nsESA) to also be getting a private pension - though it is possible of course. They'd have to be getting the private pension early (ie before reaching state pension age).

PS not saying it's wrong btw just explaining why I didn't know about it!

@AnotherEmma

Never come across that before and I've given a lot of benefits advice.

I guess it's rare for someone claiming nsJSA (or nsESA) to also be getting a private pension - though it is possible of course. They'd have to be getting the private pension early (ie before reaching state pension age).

It's not something I come across too often but did this week, but only because I usually deal with people claiming Ns ESA, often in their fifties and sixties who have part retired and claim private pension. i think it's something like anything over £85 a week reduces your ESA by 50% of the difference. So if you have a private pension of £100 a week, that is £15 over £85, so 50% of £15 is £7.50, so it would be £7.50 taken off your ESA per week. I think that's correct anyway !!

You should definitely claim, assuming you qualify, as there's a reason it's not means tested as you've paid in so it's some support back when you need it.

It also maintains your NI contributions and also means it keeps you 'covered' as such re continuity of employment. Not sure what industry you're in, but for some that need background checks (e.g. aviation etc) then having a break in employment can count against you, however being signed up to JSA means there is no break and security checks will be fine.