UC vs new style JSA - what’s the difference?

[LeopardCelery]

Can someone please explain to me the difference between new style job seekers allowance and universal credit? Should I only be claiming one or the other?!

I’ve unfortunately found myself unemployed and am running out of money. So I went on one of those online calculators to see what I might be entitled to claim. It directed me towards applying for Council Tax reduction, new style job seekers allowance, and universal credit.

Council tax, I understand.

New style JSA, I presumed was income replacement while I look for work.

Universal credit, I presumed was a cost of living supplement.

But I got sent an appointment at my local job centre to look at my UC claim. I had to send my CV in advance and answer questions about my work experience, then sign a job seekers agreement, to be able to receive any payment. I now have to attend weekly to discuss my job seeking efforts. All fine, except…

When I asked the UC advisor what job seekers allowance was for, because I thought all of this job application discussion would be for that, they were unable to tell me the difference, said they are a different department.

Having attended a weekly UC meeting two weeks in a row to show my job application efforts, I now have an appointment through for my JSA claim, it’s in the same building, different floor, on a different day to when I’m already going.

Is it too much to expect to only have to prove I’m applying for work once per week and have them share the information?

New Style JSA is pretty much what it says. It's not means tested but claimants need to have paid or been credited with NI contributions in two qualifying years.

It pays a single rate, £92.05/week - less if you're under 25, for a max of 6 months. Basically living expenses for a single person.

Universal Credit is means tested so it's affected by savings over £6k or other income. If you're part of a couple you must make a joint claim. Partner's income will affect it.

It pays a similar amount to JSA for living expenses but monthly not weekly.

If you have dependent children or pay rent you can get that added to your claim.

Both require you to show you're actively seeking work.

You can claim both but won't get more money as UC is reduced £/£ for other benefits. Some people find life simpler if they claim both as JSA is paid every 14 days and it makes managing cash easier. JSA also gives class 1 NI credits which can help with other stuff later.

UC pays class 3 NIC which basically only count for State Pension.

If you want to talk to experts try Help to Claim:

https://www.citizensadvice.org.uk/benefits/universal-credit/claiming/contact-us-about-universal-credit/

I don’t have a partner, nor any children, nor any savings left anymore, so no complications to factor in to means tests. So I am ok to claim both, that’s good. But are they being paid by different organisations? I was baffled at the idea that I have to attend two separate appointments, in the same job centre, one appointment for UC and the other for JSA, when my reason for claiming both is the same reason, that I’m unemployed and seeking work.

They're both paid by DWP but have different eligibility criteria and Admin. The Work Related Requirements though are usually the same for both but you may have two Claimant Commitments. Certainly seen that with people who cannot work due health and are on New Style ESA.

Not sure about actually needing to attend what used to be sign on appointments for both. UC should know the answer to that.

Main reason to claim both is if you pay rent. Extra cash for living expenses is a whole £1.26/month. UC makes it easier to access things like free prescriptions though and will ease access to Council Tax Reduction as UC shares details with the Council.

Question. Is there a reason why you seem to have waited until you're running out of money before investigating the benefit system?

No agenda in asking but as a retired benefit advisor it puzzles me why people wait until they're on their uppers when, even if they had savings to start with, they could have claimed sooner.

Wishing you luck finding another job soon OP.

Thanks for all of the advice. I’m just going with the flow but find the whole thing pretty confusing, and my confusion is not helped by the staff at the job centre who so far have been unhelpful and rude. In my mind, one claim and one payment would be far easier/clearer.

@Bromptotoo It wasn’t a conscious decision to wait until I was running out of money. I’ve never claimed any benefits before so it wasn’t something I had in mind as being available to help me. I was bought up believing that benefits were a last resort. Also for the past decade I’ve worked a series of fixed term contracts, so between contracts I’ve been out of work and I’ve always managed to find a new job even if it took a month or two, and I just easily managed the ‘gap’. That’s a familiar and comfortable pattern for me. Unfortunately this time it’s been a whole year with no success! I’ve supported myself through that time but It’s only now I’m running out that I’ve looked for help.

@MulberryPeony Thank you 🙏🏻💙