Ashfield District Council: How is Jobseeker's Allowance Paid?

How is Jobseeker's Allowance Paid?

Jobseeker's Allowance can be either contribution-based or income-based, and is normally paid for seven days each week that you qualify. If you have paid enough National Insurance (NI) contributions, you will get a personal rate of contribution-based Jobseeker's Allowance, irrespective of capital or of partner's earnings, for up to 182 days. Additional benefit for dependants is not paid with contribution-based Jobseeker's Allowance.

If you do not qualify for contribution-based Jobseeker's Allowance, or if you need more money to live on, you may be able to get income-based Jobseeker's Allowance. This may be made up of three parts:

a personal allowance for yourself and your partner (if you have one) and one for each child or young person that you or your partner look after
premiums for groups of people with special needs, such as families with children, people with disabilities, men over 60 and people who are getting Invalid Care Allowance. For more information on carers see leaflet FB31 ("Caring for Someone?")
housing costs to help with mortgage interest and certain other housing costs not met by Housing Benefit. Mortgage interest may be paid direct to the lender - see leaflet IS 8 ("Homeowners Help with Housing Costs").

For current rates of Jobseeker's Allowance see leaflet NI196 ("Social Security Benefit Rates").

Waiting Days

The first three days of a jobseeking period are called waiting days. You will not be paid for them. You may not however have to serve waiting days if:

you claim Jobseeker's Allowance within 12 weeks of your previous entitlement to Income Support, Incapacity Benefit or Invalid Care Allowance ending
you are 16 or 17 and getting Jobseeker's Allowance under severe hardship rules.

There may be other circumstances in which you may not have to serve waiting days. Ask your Employment Service Adviser if you are not sure.

Benefit claims

When a benefit claim is assessed, the Council decides for what length of time benefit should be paid. This is called the claimant's "Benefit Period" and can be any length from one week up to a maximum of 60 weeks.

A typical Benefit Period is usually 26 to 52 weeks, at the end of which, the claimant is asked to make a new claim. A Benefit Period may end earlier than originally set if the claimant changes address, ceases to be entitled to Income Support or income-based Jobseeker's Allowance, or ceases to qualify for benefit for another reason.

An application form to reapply for benefit is sent out at an appropriate time and must be completed and returned by the date indicated on it. Failure to return the form on time will result in the benefit being cancelled.

Payments

You will normally be paid every two weeks in arrears.

Your benefit can be paid direct into your bank or building society account including Girobank. Alternatively, you can be paid by girocheque. We recommend direct payment because it is more secure.

You can choose which method of payment you want on your claim form.

Tax

Jobseeker's Allowance is taxable. Tax, however, will not be deducted from your allowance before you get your money.

You may get a tax refund when your claim for Jobseeker's Allowance ends or at the end of the tax year, whichever comes first. Further information can be found in leaflet IR 41 ("Income Tax and the Unemployed") from your local Inland Revenue office or Jobcentre.