Job Seekers Allowance - NI contributions level?

[jimatgp]

My wife has just been made redundant and her application for JSA was refused as she has apparently not paid enough NI contributions. I am contemplating appealing the decision so thought I'd better check exactly what NI contributions were required to qualify for JSA. After hours of fruitless searching I've ended up here.

 

I can find nowhere that states the exact level of NI required. All the "official" sites simply say that JSA entitlement is based on your NI contributions... but they won't tell you how much NI you need to have paid. Is this some kind of state secret? Do they think the calculation is too complicated for us mere mortals to understand? Or are they just scared we might uncover too many errors in their arbitrary decision-making process?

 

So does anyone out there know what the formula is for calculating the amount of NI you need to have paid to qualify?

[BigGreenForest]

i remember being told something about this. Try asking for income based job seeker's allowance, not contribution based. i think it works differently, and the NI should hopefully not affect the claim.

[antone]

The formula isn't arbitrary and isn't secret, but it is a little confusing.

 

First off, this is benefit year 2011 - benefit years run from January to January. For a claim made in benefit year 2011, the last two completed tax years prior to 2011 are considered. Since the tax year runs from April - April, the relevant ones are 2008/2009 and 2009/2010. Then there are two conditions to be satisfied.

 

First contribution condition: in either of the two relevant income tax years (RITYs) she must have actually paid NI contributions on earnings that are at least 25 times the weekly lower earnings limit for NI.

 

Second contribution condition: in both of the RITYs she must have paid or been credited with NI contributions on earnings that are at least 50 times the weekly lower earnings limit for NI.

 

The lower earnings limit for this year is £102 per week. It will have been slightly lower in the RITYs they used for your wife's claim as it is adjusted annually.

Edited November 23, 2011 by antone
Corrected figure for lower earnings limit - I had put £104

[jimatgp]

Thanks for the reply antone. Very helpful. I just don't understand why that information isn't published in any of the pamphlets or web sites that deal with JSA. I guess the assumption is that Joe Public is too thick to be trusted with such complex information!

[ErikaPNP]

The information is publicised on the DWP website. The contribution conditions (alongside other conditions of JSA) are set out in the IS/JSA guides, which can be located here via the CAG library as well as the DWP website if you want to have a look through. A lot of reading though!

[Nystagmite]

i remember being told something about this. Try asking for income based job seeker's allowance, not contribution based. i think it works differently, and the NI should hopefully not affect the claim.

 

I don't think you can ask for income based. I seem to remember that they check NI first and then if you don't qualify, check income.

[sj01]

The formula isn't arbitrary and isn't secret, but it is a little confusing.

 

First off, this is benefit year 2011 - benefit years run from January to January. For a claim made in benefit year 2011, the last two completed tax years prior to 2011 are considered. Since the tax year runs from April - April, the relevant ones are 2008/2009 and 2009/2010. Then there are two conditions to be satisfied.

 

First contribution condition: in either of the two relevant income tax years (RITYs) she must have actually paid NI contributions on earnings that are at least 25 times the weekly lower earnings limit for NI.

 

Second contribution condition: in both of the RITYs she must have paid or been credited with NI contributions on earnings that are at least 50 times the weekly lower earnings limit for NI.

 

The lower earnings limit for this year is £102 per week. It will have been slightly lower in the RITYs they used for your wife's claim as it is adjusted annually.[/quote

 

Hi Antone,

Can you help me with this also please.

I went sick from work in Jan 2009, I earned about £125 a week after tax.

I was put on income based and contribution based after my ssp ran out. I was then sacked from my job in July 2009.

I was informed in August that I had been put onto contribution based only in April 2011.

Is this correct, the DWP told me that I have to be put on the benefit which pays me the most money but I am not getting any more money.

I am now having to pay council tax and prescriptions. I am also having to prove to my council that I was not aware of being put on contribution based so am in arrears with my council tax. I didnt get a letter until August and as I was not getting any extra money it did not occur to me to inform the council.

I will be about £8 a week worse off because of the council tax.

Thanks.

[antone]

Hi Antone,

Can you help me with this also please.

I went sick from work in Jan 2009, I earned about £125 a week after tax.

I was put on income based and contribution based after my ssp ran out. I was then sacked from my job in July 2009.

I was informed in August that I had been put onto contribution based only in April 2011.

Is this correct, the DWP told me that I have to be put on the benefit which pays me the most money but I am not getting any more money.

I am now having to pay council tax and prescriptions. I am also having to prove to my council that I was not aware of being put on contribution based so am in arrears with my council tax. I didnt get a letter until August and as I was not getting any extra money it did not occur to me to inform the council.

I will be about £8 a week worse off because of the council tax.

Thanks.

 

This is a bit strange. If you were/are sick (rather than claiming JSA) can you tell us some more information? Specifically:

 

What benefit are you on? By this I mean your primary benefit - such as Incapacity Benefit, ESA or perhaps Income Support.

Was any explanation given for the change in your benefit? Did they send you any letter explaining this?

Has there been any change in your circumstances? Do you have a new partner, for example, or have you received any large amount of money?

 

Also note that if benefits are your only source of income, you may still be entitled to Council Tax Benefit, Housing Benefit and help with healthcare costs - regardless of whether your benefits are contribution- or income-based. You can speak to your local council about the first two, and your Jobcentre should be able to give you form HC1, which is an application for help with costs like prescriptions and dental treatment.

[sj01]

Hi,

I was ill from a work accident was on ssp then when it ran out I went on esa.

I got dismissed from work.

I won my tribunal and was put in the work focused group.

I was awarded a bit of money in compensation in May but that doesnt get taken into account for 52 weeks and was not very much.

The letters just say a change in circumstances.

I was told by the esa people that I am was changed from cb and ib because i have t be on the benefit that pays more, i dont get any more.

I am going to get help with some of my council tax but have built up a bill because no one told me.

I am having to pay out more with no extra coming in.

I have a working child and am awarded DLA mobility.

[Nystagmite]

There is something called non dependent deductions - that may apply in SJ's case.

[jimatgp]

The information is publicised on the DWP website. The contribution conditions (alongside other conditions of JSA) are set out in the IS/JSA guides... A lot of reading though!

 

Tons of information... thank you. BUT it STILL doesn't actually state anywhere what the actual calculation is for how much NI contributions you have to have paid to be eligible for CB JSA. Thanks to antone I now know this. But why is it not published anywhere?

 

Just out of interest antone, how do you know what the magic formula is?

[antone]

?

 

Just out of interest antone, how do you know what the magic formula is?

 

Heh. I used to work for Jobcentre plus.

[ErikaPNP]

The information is published in there, starting from paragraph 21051 onward.

 

All of the DMG's are publically available - I encourage people to use exact quotes from these guides when appealing wrongful decisions as it leaves no room for doubt.

 

Antone knows the information because of his former employment, which was processing benefit. He's a handy man to have around, very good at advising others.

[ErikaPNP]

Heh. I used to work for Jobcentre plus.

 

And you've never been quite the same since!

 

Lol just kidding. We've had a few former employees here, some still work within the role and they are always very helpful.

 

Antone, would you ever consider going back into it but from the perspective of representing claimants? You're very good with advice, you'd make a great rep.

[antone]

And you've never been quite the same since!

 

Lol just kidding. We've had a few former employees here, some still work within the role and they are always very helpful.

 

Antone, would you ever consider going back into it but from the perspective of representing claimants? You're very good with advice, you'd make a great rep.

 

Appreciate the kind words, Erika - you do a fine job here yourself.

 

I would consider doing welfare advice or representing claimants, though I'd need to broaden my knowledge. I can do ESA, I'm alright with JSA, but IS makes me want to run screaming from the room

[antone]

Hi,

I was ill from a work accident was on ssp then when it ran out I went on esa.

I got dismissed from work.

I won my tribunal and was put in the work focused group.

I was awarded a bit of money in compensation in May but that doesnt get taken into account for 52 weeks and was not very much.

The letters just say a change in circumstances.

I was told by the esa people that I am was changed from cb and ib because i have t be on the benefit that pays more, i dont get any more.

I am going to get help with some of my council tax but have built up a bill because no one told me.

I am having to pay out more with no extra coming in.

I have a working child and am awarded DLA mobility.

 

Hmm. This is strange. It is true that if you are entitled to both means-tested and contributory benefits, and the amount is the same, then the contributory benefit takes precedence. I would make a point of contacting the office that pays your benefit (not your Jobcentre, it will be called a "Benefit Centre" or a "Benefit Delivery Centre") and ask them what change of circumstances has caused this. This is crucial. There are changes of circumstances that might create your problem, yes. But most of them are obvious: you got married or moved in with someone; you inherited a large sum of money, that kind of thing.

 

Assuming none of this has happened to you, you need to find out from JCP the precise reason they have made this decision. And you are entitled to be told.

[Nystagmite]

I would make a point of contacting the office that pays your benefit (not your Jobcentre, it will be called a "Benefit Centre" or a "Benefit Delivery Centre")

 

The details for this should be on any letters you receive about your benefits.