People receiving New Style Jobseeker's Allowance (JSA) must tell the Department for Work and Pensions (DWP) if they do any work while claiming the benefit, under updated official guidance.
The DWP has set out what claimants need to report to Jobcentre Plus and how earnings can affect their payments. Claimants are told they must report any work straight away, otherwise their benefit could be reduced or stopped.
Earnings limits for New Style JSA
People usually cannot receive New Style JSA if they work an average of 16 hours or more each week, although there are exceptions for certain types of work. Those working fewer than 16 hours may still qualify, but their earnings can reduce the amount of JSA they receive.
The DWP warns: “You could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances.”
The DWP says people can usually earn up to £5 a week before their New Style JSA is affected. Once earnings exceed £5, income after deductions for tax, National Insurance and pension contributions will reduce the amount of JSA paid. The department gives the example of someone earning £50.25 a week after these deductions, whose New Style JSA would be reduced by £45.25.
Special rules for certain jobs
Different rules apply to people working in certain jobs. A person can earn up to £20 a week before their JSA is affected if they are a part-time firefighter, auxiliary coastguard working for coastal rescue services, part-time lifeboat crew member or involved in launching a lifeboat, a member of the armed forces or reserve forces, or a share fisherman. Earnings above £20, after the relevant deductions, will reduce their New Style JSA. For example, the DWP says someone in one of these groups earning £50.25 a week after deductions would have their payment reduced by £30.25.
Anyone who attends regular Jobcentre appointments will need to take their payslips with them. They will also need to complete a form with their work coach declaring any work they have carried out during the previous two weeks. People who do not attend appointments at a Jobcentre should ask their work coach to send them a declaration of work form and a B7 form for each job, which need to be completed and returned to the Jobcentre along with their payslips.
What employed and self-employed claimants must report
Employed claimants, including company directors, will need to provide details including their employer's name, address and telephone number, the dates they worked, the hours and minutes worked each week, how often they were paid, the dates they were paid, earnings before deductions, deductions including tax, National Insurance, pension contributions, union subscriptions and child maintenance, and any other payments received from their employer and what they were for, such as travel costs or work expenses.
People who work regularly may not always need to provide the same level of information. The DWP says their work coach will tell them if the amount they need to report each time can be reduced.
People who are self-employed also need to tell the DWP about their work. They will be asked to provide details of their business and their gross income before expenses, plus a breakdown of expenses they have incurred, which could include materials, travel costs or equipment.
Exceptions for working 16 hours or more
Although people generally cannot receive New Style JSA while working an average of 16 hours or more each week, there are several exceptions. The DWP says someone may still qualify if they work for a charity or voluntary organisation and receive only expenses, or if they are on a training scheme and receive a training allowance.
Exceptions can also apply to part-time firefighters, auxiliary coastguards, part-time lifeboat crew, members of the armed forces or reserve forces, local councillors and people paid to be foster parents or provide respite care. People receiving funding to take part in sport or participating in a work experience programme may also be able to work 16 hours or more while receiving New Style JSA. The full guidance can be found on GOV.UK.
