Jsa

[ozzywizard]

There is a huge possibility of me being layed off over the next few weeks, if this happens I will have to claim JSA for my family and me untill further work is found.

From what I understand I will be entitled to contribution based JSA as I have been in full time continous employment for over 5 years.

 

Ok thing I need help on is trying to pre budget if this should happen, so does anyone know how much I would get and what else I can claim for example my mortgage which is not independntly protected.

 

Okies my circumstastances are as follows:

 

5 children from 0 - 8.

Mortgage owned house with both mortgage and secured loan, living with wife. both between 30 and 35.

 

thanks for any advise etc.

 

no savings. . .

 

I only left my last job about 4 months ago to start a new job, i thought this new job would be secure but unfortunatly it is not so will that come too question when making a claim.

[pompeyfaith]

You will get JSA(CB) full council tax benefit, help with the interest on your mortgage free dental free presceptions you may or may not get income support it all depends on what the government say you should have per year to live on.

 

Oh and childrens tax credit should increase but you will have to inform them otherwise it is worked out on last yrs earnings.

 

You can run the calculator entitledto here

 

Start Calculation

 

Regards

 

PF

[ozzywizard]

That is great, thanks heaps for the speedy response.

 

Okies, I have never heard of them paying interest on a mortgage . . how does this work, can I continue to pay my mortgage monthly and they will pay part of it and I pay part, is interest much if paying example 300 a month . . .

[pompeyfaith]

what happens is when u claim jsa that also acts as your claim 4 IS CTB and HB now how much u get depends on how much u already have coming in the size of your family and what savings u have thats why i gave u the benefits calculator link PF

Edited June 12, 2009 by pompeyfaith

[andydd]

That is great, thanks heaps for the speedy response.

 

Okies, I have never heard of them paying interest on a mortgage . . how does this work, can I continue to pay my mortgage monthly and they will pay part of it and I pay part, is interest much if paying example 300 a month . . .

 

Do a google for SMI Support for mortgage interest, this will fill you in, I've just been made redundant and i claimed for this and council tax benefit as part of the whole JSA claims process.

 

SMI will pay the interest on your mortgage, I would also write to your mortgage company too and explain what is going on and if they can help, there is a waiting period to get SMI, its now 13 weeks, down from the old 39 !. The rules are slightly different if the mortgage was taken out before October 1994.

 

As to paying the rest of the 'repayment' part, your mortgage company may allow you to change it to an interest only mortgage for a while (mine has ), so this will mean that SMI should cover it all.

 

SMI is paid on mortgages upto 200k and is paid at a rate of 6.08%, if your rate is more than this then you will have to pay the rest, if it is less then all the interest will be paid, and I believe that any excess will start to pay some of the 'repayment' part of the mortgage although I'm not 100% sure on this, I've read conflicting answers.

 

Andy

[installspark]

You will get JSA(CB) full council tax benefit, help with the interest on your mortgage free dental free presceptions

 

CTB is not guaranteed if you only get JSA© (contribution based), also JSA© is only paid for 26 weeks. Your LA (Local Authority) will need you to declare all income including tax credits. Also for JSA© you need to satisfy both the FCC (First Contribution Condition) and the SCC (Second Contribution Condition).

 

The first contribution condition.

In order to qualify for contribution based JSA you must have:

 

• actually paid Class 1 contributions in one of the three last complete tax years on earnings of 25 times the lower earnings limit for that particular year; or
  
• 25 Class 2 contributions in any of the three last complete tax years; or
  
• a mixture of Class 1 and Class 2 totalling 25 in any of the three last complete tax years.
  

The lower earnings limit for the last three tax years are-

2006-2007 = £84

2007-2008 = £87

2008-2009 = £89

Class 1 National Insurance contributions are paid by employed people as a percentage of their earnings. Class 2 NI contributions are paid by self-employed people at a standard weekly rate.

The second contribution condition.

In addition to meeting the first condition you must also have paid (or have been treated as having paid) Class 1 or Class 2 contributions amounting to at least 50 times the lower earnings limit in each of the two relevant tax years.

The relevant tax years are those that precede the benefit year in which the claim is made. To make things a little more complex, the benefit year runs from the first Sunday in January whereas the tax year starts on April 6th.

Contribution credits count as Class 1 credits and can be used to help you meet the second contribution condition. You are credited for each full week that you receive-

 

• incapacity benefit or
  
• statutory sick pay or
  
• severe disablement allowance or
  
• income support due to incapacity for work or
  
• maternity allowance or
  
• jobseeker's allowance or
  
• carer's allowance or
  
• adoption pay
  

 

In your case the benefit year will be 2009, so the RITY's used, for the FCC, are 05/06, 06/07 and 07/08; you only need to satisfy the FCC in any one of those years. For the SCC the RITY's will be 06/07 and 07/08. If your employer has not informed HMRC of your NI contributions, or the contributions are missing, you could fail to satisfy the FCC and SCC. This does happen.

 

You are best to claim both JSA© and JSA(IB) (Income Based) as you have a partner. Because your children are under 10 your partner will not be required to attend a WFI (Work Focused Interview) as part of your claim.

 

If you receive WTC currently, you will need to inform HMRC so that they can stop paying this element and pay you the 4 week run on of WTC. This is important as any WTC will be classed as income and deducted from the JSA(IB) element of the claim. This could potentially zero the JSA(IB). CTC and Child Benefit are fully disregarded.

 

In relation to CTB the receipt of JSA(IB), so long as the payment exceeds 10p per week, automatically entitles you to full benefit. The JCP contact centre will ask you if you want to claim CTB/HB during the claim process and the BDC (Benefit Delivery Centre) will notify your LA of the receipt of JSA once the claim has been processed. This notification can take up to a month your LA and it is advisable, and most LA's make it a requirement, that you complete their CTB application form.

 

The applicable amount in terms of JSA© is £64.30 per week. Four your circumstances the applicable amount for JSA(IB) is £100.95 per week. If you get both JSA© and JSA(IB) you will get £100.95 per week, this is comprised of the JSA© element topped up by JSA(IB).

 

You mortgage interest payments will commence from week 14 of the JSA claim although they will have been calculated at the time of processing.

 

Hopefully you will not be layed off.

[ozzywizard]

This is all brilliant information, thanks heaps.