How is new style JSA clawed back if you earn more than the allowed amount?

dharm999

Posting for a friend. He has just started claiming new style JSA, meeting earlier this week with a work adviser from Jobcentre Plus.  Friend asked what happens if he gets some adhoc work, what happens to his claim?  Adviser gave an example, and said that if he earned £200 in a week, then any JSA he had received would be claimed back, at a rate of £50 a week for 4 weeks.  Friend is looking at doing some adhoc consultancy work, so would earn a few hundred pounds a day when he does it, but the work would be an odd day here and there, nothing regular.  Adviser just said let them know what he has earned when he meets them and his JSA claim would be adjusted accordingly.  It all sounds arbitrary and confusing, and friend couldn’t shed any more light on it.  Can someone help with this, as friend is very confused

Thnks

singhini

i thought it was how many hours on average a week you work which affects JSA (i.e. less than 16 hours or more than 16 hours) but it does look like the amount of money you earn also has an effect on JSA - i found this online
https://www.gov.uk/government/publications/jobseekers-allowance-what-you-need-to-tell-us-if-you-do-any-work-b7l/new-style-jobseekers-allowance-what-you-need-to-tell-us-if-you-do-any-work

However, you say your friend might be doing some consultancy work, is that going to be as "self-employed"? therefore your friend might not qualify for New Style JSA

I'm not 100% sure, hopefully someone can shed more light on this

dharm999

Thanks.  He’s looking for employment but the consultancy, if it happens, would be on a self employed basis.

huckster

The Job Centre complete a fortnightly hours and earnings form, which is sent to the JSA Service Centre.

JSA only ignores first £5 of earnings during each benefit week. Thereafter the benefit is reduced £1 for every £1 earned.

If the benefit rate is £92.05  it would only take someone to earn £97.05 in a week for the benefit to reduce to zero.

Where the earnings vary JSA can work out what the average earnings are per week and deduct an amount. Which is what the Work Coach has explained. £200 earned during a 4 week period, would mean that £45 (£5 per week ignored) is then deducted per benefit week for 4 benefit weeks.  Otherwise you could get someone earning say £1000 one week, expecting to receive normal JSA for other weeks. When the £1000 earned should be used by the claimant towards their living costs.  If then earnings stopped being received, JSA would then recalculate the average deduction being applied, once the relevant deduction amount had been accounted for.

Where someone is self employed or they earn from normal employment infrequent good earning amounts, I don't think New Style JSA is a suitable benefit.