Jobseekers Act 1995

Last updated
Jobseekers Act 1995
Act of Parliament
Royal Coat of Arms of the United Kingdom (variant 1, 1952-2022).svg
Long title An Act to provide for a jobseeker's allowance and to make other provision to promote the employment of the unemployed and the assistance of persons without a settled way of life.
Citation 1995 c. 18
Dates
Royal assent 28 June 1995
Status: Current legislation
Text of statute as originally enacted
Text of the Jobseekers Act 1995 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

The Jobseekers Act 1995 (c 18) is an Act of Parliament of the United Kingdom, which empowers the government to provide unemployment income insurance, or "Jobseeker's Allowance" while people are looking for work.

Contents

In its current form, jobseeker's allowance is available without any means testing (i.e., inquiry into people's income or assets) for people who have paid into the National Insurance fund in at least the last two years. People can claim this for up to 182 days. After this, one's income and assets are means tested.

If people do not have enough in National Insurance Contributions (e.g., because they have just left school or university), the other kind of Jobseeker's allowance, income-based, is being phased out and replaced by universal credit, started by the Welfare Reform Act 2012. This requires means-testing. [1]

Contents

Part I - Sections 1 to 25

Sections 1 to 25 concern the Jobseeker's Allowance.

Claimants need to be "actively seeking work", which means taking at least three steps each week, rather than completing every action listed in the claimant commitment. [2]

To qualify for JSA, a claimant must generally:

Types of JSA

There are two main types of JSA:

Contribution-Based JSA. Based on National Insurance (Class 1) contributions, claimant must:

  • Have paid sufficient contributions in the previous two tax years
  • Have earnings above minimum thresholds
  • Not receive income support
  • Time-limited: payable for a maximum of 182 days (6 months)

Income-Based JSA. Based on financial need. The claimant must:

  • Have low or no income
  • Not be receiving overlapping benefits (e.g. income support, pension credit)
  • Meet age requirements (usually 18+)
  • Can continue as long as financial conditions are met

Joint-Claim Couples

Couples may be required to claim jointly. These conditions apply to combined income and employment status of both partners. One partner is nominated to receive payments. This was introduced to prevent one partner claiming while the other avoids work.

Payable Amount

Payable amount depends on the age of the claimant, type of JSA (contribution-based or income-based), and income and earnings. If the income exists, the JSA is reduced accordingly. Payments below a prescribed minimum are not made.

Duration of Payments

Contribution-based JSA payments are limited to 182 days. They can be reclaimed only if new contribution years apply. Income-based JSA payments have no fixed time limit, and continues while eligibility conditions are met.

Regulation and Flexibility

Many details such as rates, deductions, and exceptions are set by a secondary legislation. This allows the Government to adjust eligibility, modify conditions for special groups, and integrate JSA into broader welfare forms.

Joint-Claim Couples and Trade Disputes

When a couple claims JSA together, the entitlement depends on both partners' behaviour. If both are disqualified, such as in the event of trade dispute rules, no JSA is claimed. However, if only one partner is disqualified, the couple may still be eligible to receive JSA.

It is important to note that trade disputes do not automatically bar a joint-claim couple. Income calculations are adjusted to reflect one partner being disqualified and household responsibility rather than individual fault. The purpose is to prevent one partners' work dispute from unfairly removing all household support.

Young People (16-17) and Severe Hardship

This section applies to:

  • Individuals aged 16-17
  • Not entitled to JSA or Income Support
  • Registered for training but has not received any
  • At risk of severe hardship

The Secretary of State can direct payment of JSA for a limited period of time, and direction can be either time-limited or revoked if circumstances change. Support can be removed on refusal of training without good reason, failure to apply for a training place or misrepresentation of facts.

Reduced Payments for Young People

Payments can be reduced when a young person drops out of training, fails to attend without good reason, or loses a place due to misconduct. In safeguarding, if the young person shows "good reason", reductions should not apply.

Part II - Sections 26 to 29

Sections 26 to 29 concern Back to Work Schemes.

Part III - Sections 30-41

Sections 30 to 41 are Miscellaneous and Supplemental provisions.

See also

References

  1. "Jobseekers Act 1995".
  2. "Avoiding Sanctions for 'not actively seeking employment'". Boycott Workfare. 2016-08-02. Archived from the original on 2020-02-19. Retrieved 2025-01-09.