Job seekers, income or contribution??

kaylawendy

Hi

I have a good friend who has lot his job. His history is as follows, Worked for the company from which he has left for 18months. Prior to this did not work for 2years as nursed his Nan through her final years - he did not claim any benefit during this period and lived from his savings.

Prior to this was in employment (low paid and not receiving any benefits)

He does not have to pay any rent or mortgage as lives with his parents so does not need income support etc and does not have any dependants.

His is actively looking and is willing to take any job to get back into work asap

The question is could he claim Job seekers to help out while he is looking for work? and would it be income based or Contribution based? During the 18months his take home pay was £217 per week. He did not receive tax credits etc

Any information would be greatly apprecaited. He is also single! Hope I have provided enough info for someone to help!

Thank you

ukdickie31

The tax years 2006/07 and 2005/06 will be used for NI data to determine JSA (conts).

Based on what has been said, I would claim JSA (Income Based).

This will be the means tested benefit.

kaylawendy

Thank you for reply. How much tax would he have needed to have paid for contribution based? Unsure how the system works and didnt realised there was two types!

sdooley

It's not tax that determines contribution-based, it's number of weeks worked paying at least some NI stamp in each week. Think you have to have 50 of 52 weeks in each of the last two tax years to get the full rate.

Contribution-based is paid at the same rate but time on it counts towards years worked for state pension - long way off but worthwhile. The actual amount of JSA is the same but the income-based one is means-tested (they look at savings).

Lord_Dante

If you call the contact centre and do your claim over the phone most people are entered for both. That way if turned down fors conts they just move onto the IB one so just call them up

ALIBOBSY

Conts based has 2 conditions.
1) you have to have at paid at least 25 times the LEL for both those years
2) you have to have paid or had credited (from benefits etc) at least 50 times the lower earnings limit in one of the years.

If he had a big gap where he didn't get benefit or work it sounds like he wouldn't get cont based, but it would be considered anyway if he applies for income based. They will ask about his savings tho and if he has alot he may not qualify anyway. But even then he could still sign on to get NI credits if he wanted to.

ali x

stazi

ALIBOBSY

You're near with the Cont Conditions (CC)- but no coconut this time.

The JSA cont conditions are-
1st CC- 25 x LEL paid in 1 of the 2 relevant tax years.
2nd CC-50 x LEL paid and/or credited in both relevant tax years.