Finance

Jobseeker’s Allowance (JSA) - The main benefit for those of working age who are not working full-time, but who are able to work, available for work and making every effort to find work, is Jobseeker’s Allowance (JSA). There are contributory (contributions-based) and noncontributory (income-based) JSA benefits, but eligible claimants receive the same weekly cash benefit – with a higher rate paid to those aged 25 and over – regardless of which type of JSA they are claiming. Full-time students cannot normally claim JSA; the exception is students who have children, who may be able to claim JSA during the summer break. Part-time students may be able to claim JSA provided that they fulfil the eligibility requirements listed above, including being willing to give up the part-time course if they find a full-time job.

Statutory Sick Pay (SSP) - If you are employed, your employer has to pay you at least SSP if you have been off sick for four or more days. The benefit is a fixed weekly amount that is paid for a maximum of 28 weeks (although many employers build much more generous sick pay arrangements into their contracts of employment, such as six months’ full pay, followed by six months’ half pay). If you are self-employed or not working at all, you cannot claim SSP.

Employment and Support Allowance (ESA) -  If you have been getting SSP for the maximum 28 weeks or if you are selfemployed, you may be eligible to claim ESA in the event that illness or disability prevents you from working. Like JSA, ESA is either contributions-based (for those who paid sufficient NICs) or income-based. It is paid at a standard weekly benefit for the first 13 weeks for all claimants aged 25 or over and at a lower rate for those under the age of 25. The weekly amount that ESA claimants receive may be affected by any income or savings that they or their partners might have: it will not be paid at all if savings are more than £16,000. Claimants have to complete a ‘Limited Capability for Work’ questionnaire and are likely also to have to attend a ‘Work Capability Assessment’ to determine how much their illness or disability affects their ability to work.

Income Support - For someone who is not working or who is working less than 16 hours per week – because they are pregnant, because they are a full-time carer or because they are a single parent with a child under the age of 5 – and who is not eligible to receive JSA or ESA, there is a final catch-all ‘safety net’ called Income Support. Income Support provides a weekly cash benefit, the amount of which varies depending on the claimant’s age and circumstances, including their income and whether or not they have savings of £6,000 or more.

Statutory Maternity Pay (SMP) and Statutory Paternity Pay (SPP) - SMP works in a similar way to SSP: if a woman is employed (full-time or parttime), her employer must pay SMP (up to 90 per cent of her average weekly earnings for the first six weeks) for up to 39 weeks so that she can take maternity leave to look after the baby.

Child Benefit - This is a flat-rate cash benefit paid to all families or single parents with dependent children. Like SMP and SPP, it is generally not means-tested, so everyone receives the same amount regardless of how much they earn or how wealthy they are. There is, however, an additional tax charge (the High Income Child Benefit Charge) that any individual earning over £50,000 a year will have to pay if they or their partner receives Child Benefit. The amount of Child Benefit payable is higher for the first child than for subsequent children.

Personal Independence Payment (PIP) - This benefit replaced Disability Living Allowance (DLA) from April 2013 for those aged 16–64. Fewer people are eligible to receive PIP than were able to claim DLA. The rate paid depends on how a claimant’s condition affects them, not on the condition itself.

The Money Advice Service (MAS) - The [MAS] helps people manage their money. We do this directly through our own free and impartial advice service. We also work in partnership with other organisations to help people make the most of their money. The main purpose of the MAS is to provide the information and advice that people need to enable them to make broad financial decisions. 

Citizens Advice - The government part-funds two national debt and money advice charities, the first of which is Citizens Advice. The first local Citizens Advice Bureaux (CAB) were set up in 1939, a few days after the outbreak of the Second World War, in accordance with a pre-war plan to enable volunteers (eg bank or building society branch managers) to offer free, impartial financial advice to people whose financial situation had been seriously disrupted by the war. Although these bureaux were independent, they were largely funded by the government as part of the war effort.

The Money Advice Trust (MAT) - The Money Advice Trust helps people across the UK to tackle their debts and manage their money wisely.