Class 1 vs Class 3 NI credits (JSA/UC)

Spoonie_Turtle

For context: {Edited because I'm not sure it's relevant now I have an answer}

My question is, what (if any) advantage is there to claiming JSA along with UC? Financially now it makes no difference, I know it's paid fortnightly and it gives Class 1 NI credits, but what difference will the class 1 credits make in the long run compared with if they just claim UC with its class 3 NI credits?

molerat

https://www.gov.uk/national-insurance/what-national-insurance-is-for

Spoonie_Turtle

molerat said:

https://www.gov.uk/national-insurance/what-national-insurance-is-for

Ah great, thanks. I can send that link and then it's up to them if it's worth claiming as well or not.

calcotti

The link is for NI contributions rather than NI credits so is misleading. Credits do not count in the same way as contributions.
Class 3 credits count for State Pension only.
Class 1 Credits can help towards new style JSA, new style ESA and count towards State Pension.
Credits do not help towards Bereavement Support payment nor do I think they count for Maternity Allowance.

Spoonie_Turtle

calcotti said:

The link is for NI contributions rather than NI credits so is misleading. Credits do not count in the same way as contributions.
Class 3 credits count for State Pension only.
Class 1 Credits can help towards new style JSA, new style ESA and count towards State Pension.
Credits do not help towards Bereavement Support payment nor do I think they count for Maternity Allowance.

Thanks for that. But presumably class 1 credits from a JSA claim wouldn't then count towards another JSA claim later on?

calcotti

Spoonie_Turtle said:

calcotti said:

The link is for NI contributions rather than NI credits so is misleading. Credits do not count in the same way as contributions.
Class 3 credits count for State Pension only.
Class 1 Credits can help towards new style JSA, new style ESA and count towards State Pension.
Credits do not help towards Bereavement Support payment nor do I think they count for Maternity Allowance.

Thanks for that. But presumably class 1 credits from a JSA claim wouldn't then count towards another JSA claim later on?

My understanding is that they can. Remember that there are two qualifying conditions - at least 26 weeks of contributions in one of the relevant years and two full years of contributions or credits. The credits can help towards the second condition.

Spoonie_Turtle

calcotti said:

Spoonie_Turtle said:

calcotti said:

The link is for NI contributions rather than NI credits so is misleading. Credits do not count in the same way as contributions.
Class 3 credits count for State Pension only.
Class 1 Credits can help towards new style JSA, new style ESA and count towards State Pension.
Credits do not help towards Bereavement Support payment nor do I think they count for Maternity Allowance.

Thanks for that. But presumably class 1 credits from a JSA claim wouldn't then count towards another JSA claim later on?

My understanding is that they can. Remember that there are two qualifying conditions - at least 26 weeks of contributions in one of the relevant years and two full years of contributions or credits. The credits can help towards the second condition.

Aha, yes that makes sense. Thanks!

jwalton

my father is coming up to state pension age but was paralysed at work years ago, got incapacity benefit then esa contribution based he worked 17 years and wheelchaired bound and getting benefits 30 years will he be able to get full state pension come his state pension date thanks for any help as trying to sort out his money as he now has dementia

molerat

He should but a pension forecast is the only way to be certain.  There have been recorded problems with benefit related credits actually being registered so you should get a forecast ASAP. But a full pension may not be in his interest if that would be his only source of income.  Get a forecast and come back for more help. https://www.gov.uk/check-state-pension

jwalton

thanks so much for your help i have printed off form and will send it in the morning thanks again
He has a works pension of around £390 per month and PIP  top rate both due to back and his dementia will that be better for him sorry for another question