Jobseeksers Calculation
The amount of JSA(IB) is calculated by subtracting personal resources from needs. The needs element is calculated by a personal allowance, premiums, and housing costs.
The personal allowances are fixed amounts covering basic living expenses and are prescribed for couples, lone persons, or single persons. They vary with age, ranging up to a maximum of £112 per week where both couples are over 18, and downwards to £56.80 where both are under 18, or one is under 18. The single person’s and lone parents’ element is £71.70 for persons over 18.
The rate of personal allowance for a couple depends on age and whether one will be entitled to Income Support or JSA(IB) if single.
Formerly, there was a credit for children or a qualifying person. This is now part of the Tax Credit Allowance.
Premiums are paid to certain persons in recognition of extra expenses arising from age and disability. A person or partner can qualify if they are receiving under the Pension Credit age, receiving Disability Living Allowance or Working Tax Credit with a disability or severe disability element, registered blind purchasing a car under the Motability scheme, or receiving certain invalid vehicle or war pensioners’ vehicle payments. The extra allowance is £31 for a single person and £44.20 for a couple.
A person may receive an enhanced disability payment where they or their partner are under the qualifying age but in receipt of the high rate care component for Disability Living Allowance.
A person may qualify over pension qualifying age for Pension Credit or their partner, who is under 80, may qualify for a premium. The amounts are £73 for an individual and £109 for a couple.
A higher pensioner premium may be available where the person has a partner over 80; the person or their partner is at least the qualifying age and is either registered blind or receiving one of the above benefits.
Premiums are added to personal allowances as follows: Disability premium where a person or their partner is under qualifying Pension Contribution age. Enhanced disability premium where either self or partner is qualifying for the high rate component of Disability Living Allowance. Pensioner premium where a person is qualifying age or partner is qualifying age lower than 80.
Higher pensioner premium where a person has a partner who is over 80 or qualifies with certain other conditions. Severe disability premium. Where a person qualifies for the severe disability premium. Carer premium, family premium awarded to a family with a child or qualifying young person. Disabled child premium. Enhanced disability premium (child element).
In the above cases, there is an addition to the basic allowance varying based on the premium involved. This can vary significantly, from minor amounts or increments in some cases to significant increments in more severe cases of need.
Normally, only one, the highest premium is paid. There are some situations where certain premiums can be paid with each other.
Account is taken of some housing costs for JSA(IB). The amount includes mortgage interest, interest on loans for repairs and improvements, co-ownership payments, and certain other housing payments, including ground rent and service charge. It is restricted to the total of loans below £200,000 for claims after 2009 and £100,000 in other cases.
Payments for mortgage interest are benchmarked at the Bank Of England Average Mortgage Rate published.
Generally, housing costs are not included until a person has been claiming JSA for a qualifying period. Generally, mortgage interest payments last for two years only. After 2009, most people do not receive housing costs for a 13-week period.
The amount payable for housing costs may be reduced if the person moved into more expensive accommodation while on the claim, where housing costs are excessive relative to the size of the house or area, or other areas of suitable accommodation.
Where a person has non-dependants normally living in the house, a deduction is made for each. The rate of deduction is tiered in respect of non-dependents living at home. Only one non-dependent deduction is made on their joint income.
Where the non-dependant is not in full-time paid work, the deduction is £13.60. The maximum deduction is £87.75 where their earnings are over £400 per week.
Non-dependent deductions are made in respect of children aged 16 or 17; aged under 25 on income support JSA(IB); receiving PC, close relatives, or a co-owner or joint owner with the person or partner; a full-time student during a period of study in receipt of an allowance for youth training under specific provisions, normally living elsewhere and in hospital for more than 52 weeks or in prison.
Job seeking periods may be linked for the purpose of contributions qualification where the periods are separated by no more than 12 weeks, over any period during which the person is on jury service, or where the job seeking periods are separated by a linked period. This is any period during which a person is incapable of working, has limited capacity, is receiving maternity benefit, or is undergoing certain training, is entitled to carers allowance.
Resources are income from all sources, including part-time earnings and most other benefits. Attendance Allowance, DLA, and Housing Benefit do not count. Child Benefit does not count. Child Tax Credit does not count. A person’s partner or spouse’s income is added to their income.
Net earnings, i.e., earnings after tax and other contributions towards pension schemes, are taken into account, less any amount that is to be disregarded. There is generally an earnings disregard of £20 in most cases. A lower disregard of £10 or £5 may be available.
He may be eligible in full for means-tested benefits, including most other benefits and allowances. The first £10 and certain War Disablement and Widow’s pensions are disregarded. The following are disregarded in full: Child Benefit, Child Tax Credit, DLA, Guardian’s Allowance, foster fees, Housing Benefit; income in kind; Job Start Allowance; Mobility Supplements.
Charitable or other voluntary payments made regularly are ignored except where a person is involved in a trade dispute. Regular personal injury claims derived from lump sums are disregarded when they arise from personal injury.