JSA Contribution Based

AzimScot

Hi,

Are the funds that are given to you taken from your NI earnings since you started work? Does this impact on your state pension? Why does it only last 6 months?

suseh97

No it is based on the last few years NI contributions. It will have no impact at all on your state pension. It only lasts 6 months and then you would have to go on income based JSA. The contributions you have payed are not neverending and will have run out by then. Hopefully you will have found a job before the 6 months are up :beer:

AzimScot

So say for talking sake I don't fine work within 6 months and my contribution based allowance runs out will I automatically be put on Income based allowance will I have to go through all the hoo haa again?

dmg24

You will have to complete a further form when you change to IB JSA, giving details of savings, other income etc. Remember that your partners income will also be taken into account at this stage - how much does she earn?

AzimScot

she earns about £87 per week and works only 15 hours she is on a tax free allowance 647L till £6,470 till she gets taxed. We are not claiming together as she is on a spouse 2 year visa.

dmg24

You still have to claim as a couple. The £87 (minus a £10 disregard) will be deducted from your JSA entitlement.

Pagg

Contribution-based JSA is assessed based on your contributions (hence the name) to National Insurance in the two FULL FINANCIAL YEARS prior to the year you claim. So for April 2009-Mar 2010 you'd have to have paid full NI contributions from Mar 2007 to get the guaranteed JSA. For 6 months.

Beyond that it's Income Based, any money you have squirrelled away over £6000 is taken into account and your IB JSA reduced accordingly. It drops to zero at £16000.

sammyjammy

Not stricly true Pagg, its have to have paid Class 1 NI in one year and paid or credited in the other year.

Oldernotwiser

AzimScot wrote: »

Hi,

Are the funds that are given to you taken from your NI earnings since you started work? Does this impact on your state pension? Why does it only last 6 months?

Your NICs in the past will have paid benefits/pensions etc to those who were eligible at the time. Anything you receive now will be paid from those who are currently working.

It's a great mistake (made by many) to think of NICs as some kind of personal savings plan that you can draw on when necessary; the system isn't structured in that way.