Can You Get Both Universal Credit and Jobseeker’s Allowance in the UK?

Navigating the UK benefits system can be complex, especially when it comes to understanding the interplay between Universal Credit and Jobseeker’s Allowance (JSA). Both benefits are designed to support individuals who are out of work or on a low income, but they operate in different ways.

This detailed blog article explores whether you can receive both Universal Credit and Jobseeker’s Allowance simultaneously, the differences between the two, and how to determine which benefit is right for you.

Understanding Universal Credit and Jobseeker’s Allowance

Universal Credit (UC) is a comprehensive welfare benefit introduced to simplify the benefits system. It replaces six means-tested benefits, including income-based Jobseeker’s Allowance. Universal Credit provides financial assistance for living costs, housing, and children, and is designed to ensure that people are better off in work than on benefits.

Jobseeker’s Allowance (JSA) is a benefit specifically for people who are actively seeking work. There are two types of JSA: contribution-based (now known as ‘New Style’ JSA) and income-based JSA. Contribution-based JSA is based on National Insurance contributions, while income-based JSA is means-tested and has largely been replaced by Universal Credit.

Can You Receive Both Universal Credit and Jobseeker’s Allowance?

The short answer is no, you cannot receive both Universal Credit and income-based Jobseeker’s Allowance at the same time. However, there are scenarios where you might receive Universal Credit alongside contribution-based (‘New Style’) JSA.

1. Universal Credit and ‘New Style’ JSA:
   • It is possible to receive Universal Credit and ‘New Style’ JSA concurrently. ‘New Style’ JSA is contribution-based and is available to those who have paid sufficient National Insurance contributions over the last two to three years. If eligible, you can receive ‘New Style’ JSA for up to 182 days.
   • ‘New Style’ JSA is not means-tested, so it can be claimed regardless of your savings or income, unlike income-based JSA which has been replaced by Universal Credit.
   • When receiving both Universal Credit and ‘New Style’ JSA, your ‘New Style’ JSA payments will be considered as income and may reduce the amount of Universal Credit you receive.
2. Universal Credit and Income-Based JSA:
   • Income-based JSA has been phased out and replaced by Universal Credit for most new claims. Therefore, you cannot receive income-based JSA if you are claiming Universal Credit.
   • If you are currently receiving income-based JSA, you may eventually be transitioned to Universal Credit as part of the government’s ongoing rollout.

Differences Between Universal Credit and Jobseeker’s Allowance

Understanding the differences between Universal Credit and Jobseeker’s Allowance can help determine which benefit you are eligible for and which is more suitable for your circumstances.

• Eligibility Criteria:
  • Universal Credit: Available to individuals and families on a low income or out of work, aged 18 or over (with some exceptions for 16-17-year-olds), living in the UK, and with savings below £16,000.
  • New Style JSA: Available to those who have paid sufficient National Insurance contributions over the last two to three years, actively seeking work, aged 18 or over, and under State Pension age.
• Payment Structure:
  • Universal Credit: Paid monthly and includes various elements such as housing, childcare, and disability. The amount received depends on your income, savings, and household circumstances.
  • New Style JSA: Paid fortnightly at a fixed rate, currently up to £74.70 per week if you are 25 or over.
• Work Requirements:
  • Universal Credit: Requires a Claimant Commitment, outlining your responsibilities to look for work or increase your earnings.
  • New Style JSA: Requires you to be actively seeking work and available to start a job.

Applying for Universal Credit and Jobseeker’s Allowance

Applying for Universal Credit:

1. Online Application: Start your application on the official UK government website.
2. Personal Interview: Attend an interview at your local Jobcentre Plus to discuss your Claimant Commitment.
3. Manage Your Claim: Use your online account to manage your claim, report changes, and communicate with your work coach.

Applying for ‘New Style’ JSA:

1. Online or Phone Application: Apply online or by phone through the official UK government website.
2. Personal Interview: Attend an interview at your local Jobcentre Plus to discuss your job-seeking efforts.
3. Fortnightly Reviews: Continue to actively seek work and attend regular reviews with your work coach.

Conclusion

In summary, while you cannot receive both Universal Credit and income-based Jobseeker’s Allowance simultaneously, you can receive Universal Credit alongside ‘New Style’ JSA. Understanding the differences between these benefits and their eligibility criteria can help you navigate the UK benefits system more effectively. Whether you are out of work or on a low income, these benefits are designed to provide financial support while encouraging you to seek employment and improve your circumstances.

Source: Collegesintheuk.com