Unemployment Benefit

Unemployment benefit, now re-labelled Jobseeker's Allowance, but still more commonly known as 'the dole', has existed in the United Kingdom since before the First World War, when mass unemployment reared its head for the first time In the slump that followed that war the number of people receiving the benefit rose to two million, which, as the population was twenty million fewer than today, was a far greater proportion of the available workforce. Today the amount of Jobseeker's Allowance that's given out to unemployed people is dependent on how long they've been working and their circumstances.

Job Seeker's Allowance

The name change to Jobseeker's Allowance (JSA) was a deliberate attempt to change the image away from the idea of a payment for being unemployed toward a payment to encourage looking for work. Under the age of 18 JSA is not paid unless there are circumstances that make life very difficult. Those over 18 years old and under retirement age can get JSA if they are out of work, capable of doing it and can prove that they are actively seeking work.

There are two forms of JSA, income-based and contribution-based, both of which have lower payouts for people between 18 and 24 years old than for those over 24. Both forms of JSA are reduced if a person has savings of more than £6,000 and those with over £16,000 are not allowed to receive it at all.

Contribution-based JSA is paid to people who have been in work for long enough to have paid sufficient National Insurance (NI) contributions to qualify, and is higher than income-based JSA. Income-based JSA is generally lower than contribution-based, but has a higher rate for lone parents. There is also a combined rate for married couples or those in civil partnerships, which is slightly less than the income-based JSA for two individuals.

Local Jobcentres (details of which can be found online, in a library or in a telephone directory) are the places to go to find out about benefits and apply for them. JSA requires people to present themselves regularly to the Jobcentre and keep a diary of their efforts to find employment. If you find that you are refused JSA and believe that you are entitled to it, there is an appeals procedure, which will allow you to question the decision.

People who have not found a job after six months of JSA are likely to be re-interviewed and may be considered for the 'New Deal' scheme. On this scheme people are assigned a personal adviser who is their main point of contact while they go through a programme of help and support that is likely to include training and preparation for work. There is a New Deal programme especially for over-50s as well.

Income Support

There is another form of benefit available to those who are not working or are on a very low income, known as Income Support (IS). People who are applicable for IS are often those who are unable to work because they are disabled, caring for someone full-time or a lone parent. It can also be given to people who are on maternity or paternal leave, or perhaps they are off sick and IS would give them more income than Statutory Sick Pay (SSP). Whether IS or JSA would apply to an individual would be decided by the Jobcentre and the local Department for Work and Pensions office.

Where to Go for Advice

Benefits can be a real minefield and fortunately there are a number of places you can turn to to try and make head or tail of it all. If you have access to a computer and the Internet then the government's website at www.direct.gov.uk is a good place to start. All public services provided by the government are linked by this site. Another good place to start, particularly for people who are beginning to get into trouble because of unemployment, is the Citizens Advice Bureau (CAB) who have offices in all cities and most towns.