JSA + SMI - Starting a Job with training next month

mparker

Good Morning All,

I am currently on JSA and have got a new job starting next month  

The first week is training (paid for by the company, and I am paid for my time) but if I flunk it, not sure the job will still be available or whether a resit is possible...

What do I tell my JSA advisor? I dont want to come off JSA, make a mess of the course then go through hell getting back on (and forfitting benefits in between).

If I understand it correctly, I should stay on JSA, alert them to this job/training and because I am being paid, I will receive no fortnightly benefit but at least my claim stays open and then update them after my training?

Next question - I also receive the Mortgage SMI help. Will I still get this next month when I am being paid for my training? Or because I am not receiving the fortnightly benefit (as I am getting wages) does this also stop?

Any advice or links to help would be appreciated.

Thanks, Mark Parker

pmlindyloo

I believe that your JSA claim will be closed in this situation.  There used to be a rapid reclaim for JSA if you reapplied within 12 weeks but I think this has stopped for income based claims and you would have to claim Universal Credit. Again, I do not know what would happen about the SMI and whether this would continue under UC immediately or you would have to wait for 9 assessment periods before it began again,
I have searched and searched for information about this but have been unsuccessful.
Unless anyone else has better luck with finding links or has experience of this situation then I suggest that you ask your work coach.
Hopefully your training will go well and you will get back into work.
Good luck!

mparker

Thanks for your help.

I have been advised elsewhere "SMI will be cancelled, if you receive employment earnings and you then have to wait 9 months without work earnings before you can reapply for the SMI. "

Thought I'd add it in here as may help someone else in the future

Galloglass

mparker said:

Thanks for your help.

I have been advised elsewhere "SMI will be cancelled, if you receive employment earnings and you then have to wait 9 months without work earnings before you can reapply for the SMI. "

Thought I'd add it in here as may help someone else in the future

What is your mortgage provider's view on this. There are two interested parties to your SMI journey.

huckster

SMI stops when earnings are reported and then it is only if you are without earnings for 9 months, that the SMI could be applied for again,

calcotti

huckster said:

SMI stops when earnings are reported and then it is only if you are without earnings for 9 months, that the SMI could be applied for again,

It's a completely mad policy. Someone in difficulty claims SMI to help keep a roof over their head but as soon as they try and improve their situation by working they lose that support completely even if still entitled to means tested benefits.

Galloglass

Not sure that it is a completely mad policy. The alternative had it's issues too. See page 26
https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06618#fullreport

It's how the mortgagor reacts that is key. And I suppose that reaction will be determined by individual circumstances like LTV and the likelihood of being able to recover the loan. 

calcotti

Galloglass said:

Not sure that it is a completely mad policy. The alternative had it's issues too. See page 26
https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06618#fullreport

It's how the mortgagor reacts that is key. And I suppose that reaction will be determined by individual circumstances like LTV and the likelihood of being able to recover the loan. 

I accept completely mad may indeed have been overstating it but I think the impact of the earnings rule makes it of very limited value. Most borrowers with a repayment mortgage will not get more than a few months suspension of capital repayments so whilst SMI may help with the interest they will need to earn money (if they are able) in order to get their mortgage back on track. However this is veering off into discussion which isn't the purpose of this forum (my fault).