Unemployed insurance proposals

Hi Anniesmum

Would they be left with nothing? Why could they not claim Universal Credit if they had no income?

David

Yes UC is means tested. You cannot claim if you have over £16,000 in savings and investments.

David

Hi Anniesmum

The proposal is quoted from here --
www.gov.uk/government/consultations/path...-working-green-paper

Introducing a new Unemployment Insurance by reforming contributory benefits
149. We are consulting on creating a new Unemployment Insurance for those that have made National Insurance contributions. This would mean people receive the income they need alongside the right employment support to get back into work. The welfare system was founded upon the contributory principle – the idea of ‘something-for-something’. Contributory benefits are a form of non-means tested support for those who experience unemployment. Currently, New Style Employment and Support Allowance (NS ESA) and New Style Jobseeker’s Allowance (NS JSA) provide support for those who have recently become unemployed. To qualify for these benefits, 2 to 3 years’ worth of National Insurance credits must have been paid or credited prior to the date of a person’s claim. NS ESA supports individuals whose ability to work is restricted due to a disability or health condition. NS ESA relies on the WCA to determine eligibility. After the WCA, NS ESA places people in either a work-related activity group or a support group, which determines how much work preparation activity they are required to do and how long they are able to access the benefit. NS JSA also supports unemployed individuals, or those working on average less than 16 hours a week, but it does not have a health-related requirement. People receiving NS JSA are expected to be actively searching for work and are able to access the benefit for up to 6 months.

150. Under the reformed system, we are consulting on replacing NS ESA and NS JSA with one new Unemployment Insurance benefit. The rate of financial support would be set at the current higher rate of NS ESA. The benefit would not require a health assessment and would be based on an individual’s National Insurance record as is currently the case.[footnote 84] Individuals, such as those with long term health conditions, would also be able to claim other relevant benefits where eligible.

151. We believe this would make the contributory system simpler and significantly more pro-work by first removing the binary distinction between jobseekers and those considered unable to work (by removing the WCA) and second by removing the financial incentive to be considered unable to work (by paying at a flat rate). We would also be improving the income protection available to people who lose their job, while time-limiting that entitlement (for example for 6 to 12 months) to create a strong incentive to get back into the labour market.

David