A Guide to Unemployment Benefits

Unemployment is an issue that is affecting a steadily growing number of people. The long period of relatively low unemployment enjoyed in this country was rudely interrupted by the recession, and redundancy is now on the minds of many. Very few sectors are immune from the effects of the downturn, and it is therefore important for everybody to understand the help and benefits available to them in the event that they become unemployed.

Jobseekers Allowance

The main unemployment benefit is New Style Jobseekers Allowance (JSA) - what most of us know as the dole. New Style JSA is not granted to everyone who is out of work. Rather, you must be under the state pension age and actively seeking work. The official signing off your JSA at the Jobcentre will try to ascertain whether or not you are actually looking. However, it is possible to claim JSA while still doing some work; it is available to all those doing less than 16 hours work per week.

New Style Jobseekers Allowance is a contribution-based benefit. Contribution-based JSA depends on the National Insurance payments that you have made over the course of the previous two years. If you have worked full-time and made your full NI contributions for the previous two years, you will receive New Style JSA for the full period - currently set at 182 days. New Style JSA is paid at a rate of £72.90 per week for those aged under 25, and £92.05 for those aged 25 and over.

Income-based JSA has been abolished as of 1 April 2026. New claimants who need means-tested support must apply for Universal Credit instead, which has different eligibility rules and payment amounts.

Income Support

If you are unemployed because you are unable to work (for example because you are sick or a carer), you cannot claim Income Support as it was abolished on 1 April 2026. You may need to apply for Universal Credit or other benefits depending on your circumstances. Income Support no longer exists for new claims as it was abolished on 1 April 2026. You must also be working less than 16 hours per week. You local Job Centre Plus will be able to advise you on how much you may be entitled to.

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Housing Benefit

Housing Benefit is no longer available to most working-age people who need help paying their rent. New working-age claimants must apply for the housing element of Universal Credit instead. Housing Benefit is still available for pensioners and some people in supported accommodation. Each area of the country has a fixed maximum level of Housing Benefit to which you might be entitled. This is reviewed monthly in line with rental price changes. Your circumstances will dictate what proportion of this figure you are entitled to. Again, you will not qualify if you have more than £16,000 in savings. There is a significant amount of help available to those who are unemployed; consecutive Budgets have seen increases in the rates of redundancy pay.

If you find yourself unemployed, you should remember that there is no shame in claiming that to which you are entitled. You have been, or will be, a taxpayer, and the state is there to support you. Read more in our redundancy category.