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Title: Job Seekers’ Allowance Author: Anarchist Federation Date: 1995 Language: en Topics: welfare state, United Kingdom, Organise!, benefits Source: Retrieved on May 13, 2013 from https://web.archive.org/web/20130513080349/http://www.afed.org.uk/org/issue40/job_seekers_allowance.html Notes: Published in Organise! Issue 40: Special Issue on Work — Autumn 1995.
Job Seekers Allowance (JSA) was due to start in April ‘96 but the
computer system and staff training problems have put that back to
October 1996 although some measures will be enacted in April 1996. It is
a complete overhaul or the benefit system. One reason for it claims that
by simplifying the two-benefit system ( Unemployment Benefit(UB) and
Income Support(IS) ) will save a lot of money — i.e. they can make
10,000 workers redundant.. The new rules will also cut the benefit for a
large number of people. It has been estimated that 250,000 will lose
benefit with 70,000 loosing all benefit.
Income Support and Unemployment Benefit have basically been scraped —
there will be Contributory JSA and means — tested JSA. This is more than
just a name change
you are only entitled to 6 months rather than one year. for people under
25 who have paid enough National Insurance will still not be able to
claim contributory JSA but will get the reduced payment made to under
25’s on income support at the moment. abolish Adult Dependant Allowance
Savings and redundancy over £3000 will be taken into account and benefit
reduced accordingly — no benefit is paid over £8000 savings.
The waiting period will be increased from 3 days to two weeks unless you
have been recently or claiming Income Support or Incapacity benefit.
Occupational/personal pensions — the pension threshold before it is
deducted from benefit is increased from £35 to £50 “in recognition of
the efforts of those who have been providing for their own retirement”.
However the 55 age limit has been removed so the government hopes to
save £10 million.
You are now allowed to earn some money (the disregard ceiling) without
it effecting your benefit immediately — you do not have to be unemployed
for 2 years — but the amount has been decreased from £15 to £10 a week
for couples. Single claimants can still earn £5 per week. Back To Work
Bonus. Yes the state will pay you to earn money. At present if you take
part time work and earn more than £5 a week then your earnings (above £5
a week) is deduced pound for pound from your benefit — i.e. you can
never really get more than £5 a week. This remains the same under JSA
but if you move to full time work you get half of the money they took
off your benefit given back to you as a Back to Work Bonus. e.g. if you
are doing part time work for £25 a week then £20 will be deducted from
your JSA — £5 being disregarded. If after say 10 weeks you get full time
work then you will get a cash payment of £100 i.e. £10 (half the money
they nicked off your JSA) for 10 weeks.There is a limited of £1000.
The JSA staff will be forced to become much more aggressive when you
sign on. You will have to sign the Jobseeker’s Agreement and complete a
Jobsearch Plan before they receive any money. In a draft Jobseekers
Agreement you had to specify
Each time you attend the office they can ask you
effected”.
Part of the agreement looks as if it will contain questions such as ..
“to identify and apply for suitable jobs I will”
times a week
If they think that you are not trying hard enough they can change your
“agreement” — if you do not like this new agreement they can call in the
Adjudication Officer. As the full effects come into force more decisions
will have to be taken by ‘front-line’ staff. This will lead to even more
than the 40% error rate, according to the Chief Adjudication officer, at
present.
No benefit will be paid to you if you do not attend the meeting. If they
then feel that you are not trying or you refuse any work which you “can
reasonably be expected to do” then they can impose sanctions.
The Jobseekers Direction which will “enable advisers to direct
jobseekers to improve their employability through, for example,
attending a course to improve jobseeking skills or motivation, or taking
steps to present themselves acceptably to employers”. If you refuse to
do so your benefit will be sanctioned. At present sanctioned people have
their IS reduced but “there will be no automatic payment of JSA to
people who have been sanctioned”. Hardship fund will not be given to
most people in the first two weeks so for many they will have to live
two weeks without any income. Despite having no income you will have to
prove that you are “suffering hardship” even after the first two weeks
before hardship payments are made.