Unemployment Benefit in the UK

Unemployment benefit in the United Kingdom is an important source of financial support for people who have lost their job and need help covering basic living costs while they look for new employment. In this article, we explain what benefits are available to unemployed people in the UK, who can claim them, how much the benefit is worth and how to obtain it. We will also suggest how to get professional help with your tax affairs in the United Kingdom.

What benefits are available to unemployed people in the United Kingdom?

There are two main types of benefit available to unemployed people in the United Kingdom, which differ in their eligibility conditions and payment amounts. The first is New Style Jobseeker’s Allowance (JSA) - intended for people actively looking for work. It is worth noting that there are two types of Jobseeker’s Allowance - contribution-based and income-based JSA, that is, paid on the basis of contributions or income. Importantly, however, you can now only claim contribution-based (New Style) JSA.

The second is Universal Credit, which replaced many earlier benefits, such as Income Support, Working Tax Credit, Housing Benefit and the income-based JSA mentioned above, integrating them into a single financial support payment. The purpose of this benefit is to provide help with living costs for people unable to work due to their health, the unemployed and those on low incomes. The level of financial support in this case depends on the individual circumstances of the claimant. The benefit is based on the Standard Allowance, to which extra amounts can be added, for example for children, housing or health reasons.

Unemployed people and those on low earnings can also apply to the local council for their area for a Council Tax reduction. In some cases it is possible to obtain a discount of up to 100% of the amount due - the scope of the relief depends on where you live, your financial situation, the number of children you have and the benefits you receive.

Who can claim unemployment benefit?

New Style Jobseeker’s Allowance can be claimed by people who:

• were previously employed and paid Class 1 National Insurance contributions in the last 2 or 3 years - in most cases, people who were self-employed and paid Class 2 National Insurance contributions do not qualify,

• are at least 18 years old (in some cases it is possible to receive the benefit at 16 or 17) and have not reached State Pension age,

• are not in full-time education and are ready to take up work,

• do not have health problems that make work difficult or impossible,

• live in the United Kingdom.

Unemployed people claiming Universal Credit must:

• live in the United Kingdom,

• be between 18 years of age and State Pension age,

• have less than £16,000 in savings or investments.

An important criterion in both cases is also taking steps to find work while receiving the benefit. You may also be required to take part in vocational training while looking for work, to increase your chances of finding employment.

How much is unemployment benefit in the United Kingdom?

The amount of unemployment benefit in the United Kingdom depends on the type of payment and the circumstances of the person applying for help.

For Jobseeker’s Allowance, the rates for the 2024/25 tax year are:

• for unemployed people up to the age of 24: up to a maximum of £71.70 per week,

• for unemployed people aged 25 and over: up to a maximum of £90.50 per week.

The Universal Credit rates for the 2024/25 tax year are:

• Standard Allowance:

£311.68 for single claimants under 25 and £393.45 from the age of 25,

• £489.23 for a couple if both people are under 25, and £617.60 for a couple if at least one person is 25 or over.

How do you claim unemployment benefit in the UK?

You can apply for New Style Jobseeker’s Allowance online or at Jobcentre Plus. To submit a claim, you need your National Insurance number, bank details and details of your employment over the last 6 months. If the claim is successful, the applicant will receive an invitation to a meeting at their local Jobcentre office to arrange the details.

For Universal Credit, you can claim online, via a free helpline or at a Jobcentre office. To claim online, you need your bank details, an email address, a document confirming your identity (e.g. a driving licence) and access to a phone. You also need to provide information about your circumstances, health and finances.

Professional help with your tax affairs in the UK

If you need help with your tax affairs or with claiming unemployment benefit in the UK, get in touch with us. With the help of PolAccount, jobseekers, business owners and those just starting their career in the United Kingdom can focus on their professional goals, leaving the tax formalities in the hands of specialists.