Wondering what to do if you lose your job? Find out what benefits are available to help you cope with the loss of income and how to claim them.
- What benefits can you claim if you’ve lost your job?
- Are you entitled to benefits if you’ve been sacked?
- Claiming Jobseeker’s Allowance or Universal Credit
- Statutory redundancy pay
- Tax credits
- Benefits to help with housing costs
- Benefits to help with other costs
- Welfare and educational grants
- If your circumstances change
What benefits can you claim if you’ve lost your job?
The main benefit you can claim while you’re out of work is Jobseeker’s Allowance, or Universal Credit if you live in an area where it has already started.
If you claim Universal Credit you’ll get a single monthly payment.
This will include a basic payment plus other elements.
These elements are payments for things such as housing costs, childcare or caring. You must claim Universal Credit online.
If you live in a Universal Credit full service area, you might be able to get new style Jobseeker’s Allowance (JSA) for up to six months. How much you’ll get depends on your National Insurance contributions and how long you’ve worked for. This will be paid into your bank, building society or credit union account every two weeks.
The amount you get in new style JSA will be deducted from your monthly Universal Credit payment.
If you live in a live service Universal Credit area, you might be able to claim Jobseeker’s Allowance and other support, such as tax credit or help with rent or mortgage costs.
Jobseeker’s Allowance is usually paid every two weeks.
This will continue until your Job Centre asks you to claim Universal Credit under the full service rules.
Are you entitled to benefits if you’ve been sacked?
If you’ve been dismissed from your job because of misconduct, or you left it without a good reason, there might be a delay before you can start getting Jobseeker’s Allowance or Universal Credit.
This is because your Jobcentre Plus work coach is allowed to apply a sanction to your benefit – in other words, stop it being paid for a certain number of weeks. It’s up to your work coach how long the sanction lasts.
Claiming Jobseeker’s Allowance or Universal Credit
“The thought of going to the Jobcentre really worried me. All I could think of was that scene from The Full Monty. But the staff weren’t scary at all. They talked me through everything, and made sure I got what I was entitled to. I even got help with my rent.” – Pritish
You can start your claim for either benefit online. It should take up to 40 minutes.
You’ll need to give:
- your postcode
- details of your education
- your past employer
- your National Insurance number
- details of people living with you
- details of any income and savings
- details about your rent or mortgage
- details of any other benefits you are getting
- details of the bank, building society or credit union account you want your benefit paid into (you must give this if you are claiming Universal Credit).
After you’ve applied, you’ll have to follow these steps:
- Go to an interview at the Jobcentre or Jobs and Benefits Office. An adviser will talk you through the process and look at ways to improve your chances of finding work.
- Sign a ‘Claimant Commitment’. This will set out steps you must take to get a job (such as spending a set number of hours looking for a job). This will depend on things like your health, responsibilities at home and how much help you need to find work or increase your income.
- Go back every two weeks to confirm your benefits claim (called ‘signing on’). You’ll also need to prove you’re meeting the conditions of your Claimant Commitment. After 13 weeks, you’ll have a review with your adviser.
Your benefit payments could be stopped for a while if you don’t agree to do something you agreed to do in your Claimant Commitment and you don’t give a good reason. This is called a sanction.
Statutory redundancy pay
If you’ve been made redundant, you’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for at least 2 years.
Millions of families and adults in the UK get tax credits to help make ends meet.
You could get tax credits if you have children, or if your partner is still working and your total household income is below a certain amount.
Tax credits can be paid weekly or every 4 weeks.
If you already get tax credits, you must tell the Tax Credits Helpline (0345 300 3900) about your job loss.
The amount you get could rise or fall as a result.
Benefits to help with housing costs
Help with your rent
Depending on your income and savings, you could get some help with your rent from Housing Benefit or Local Housing Allowance.
Help with Council Tax
You might also be able to get help with Council Tax.
Help with mortgage interest payments
If you’re a homeowner, you might qualify for help with your mortgage interest payments.
Benefits to help with other costs
Welfare and educational grants
If you’re on a low income, there might be some support available through welfare and educational grants from charities.
If your circumstances change
Remember to tell Jobcentre Plus or Jobs and Benefits Office if you go back to work or if your circumstances change.
The same goes for HM Revenue & Customs – you could be fined £300 if you don’t tell the Tax Credits Office your circumstances have changed.
You might still be entitled to some help when you go back to work and your income is low.
For example, if you were getting Jobseeker’s Allowance you might carry on getting Housing Benefit or Working Tax Credit.
If you are getting Universal Credit, your payments might gradually reduce until your income rises to the point where you’re no longer eligible to get it.
This article is provided by the Money Advice Service.