Zero Hours, JSA, and NI

Grumpy_chap

Hello forumites,

During lockdown my wife was on furlough and then made redundant in July.

She claimed JSA, though that was all automated with none of the 'job coach' support that normally accompanies the financial assistance.  I understand that as well as the weekly allowance (paid every other week), being on JSA counts as making NI contributions, so future state pension is as secure as it is for anyone.

She then secured a new job, which she is now in the second month, but it is zero hours.  Initially, they were quite busy so she got a reasonable number of hours in September.  This month, they have been far less busy so not many hours, only 4 hours per week.  This means her pay will be low at the end of the month and I think she may not qualify as having made NI contributions to count towards her state pension this month.

As I understand it, because the hours have dropped right down, it would be permitted to claim JSA again.  My understanding here is that the claim can continue so long as working less than 16-hours per week, but the amount earned (less a £5 disregard) is deducted pound-for-pound from the JSA paid.  So, if she claimed JSA again, she would receive more money in the short term but would also effectively be working for nothing (apart from the £5 per week).  However, having the claim for JSA would also protect her state pension for the future.

My wife is looking for other jobs that might have more stability in hours.

In a way, it seems wrong to be working and also claiming a JSA "top-up", but is there any way that she can continue working, even if few hours, and still accrue her NI "stamp" towards the state pension?  Or, can that only be achieved through more hours (not her choice) or claiming JSA?

With thanks in advance for any clarification.

Savvy_Sue

It's worth her checking her NI contributions record, and finding out how many more years she needs ... 

https://www.gov.uk/check-national-insurance-record

If she ever claimed Child Benefit then that would also give a contribution towards her pension - and certain other situations too - that's called Home Responsibilities Protection. 

MovingForwards

https://www.google.com/amp/s/www.thisismoney.co.uk/money/pensions/article-7873583/amp/How-qualifying-years-state-pension-worked-out.html

Happened to spot this on another thread this week, which potentially makes things a lot simpler / clearer. I haven't found the actual thread again where it was posted as the members did post an explanation too (possibly on the pension board).

Grumpy_chap

Thanks both for your comments.  I will suggest she checks her record online later.
The "This is Money" article seems to suggest that she will be OK for a little bit if she is under the threshold for October as was over the threshold in her old job and credited when on JSA and over the threshold in September with the new job (only by a little - NI paid was £10).  If she has missed October, then she can earn more in later months to cover the missed months and still accrue the year.

MovingForwards

That's the way it was explained in the other thread. Doesn't need to be a consistent income and can be higher / lower / none as long as a certain figure is achieved each year. 

Found the thread
https://forums.moneysavingexpert.com/discussion/6205173/national-insurance-when-is-a-year-full#latest