JSA and Furlough

[JamesC34]

My umbrella are dragging their heals on making a decision as to whether I can be furloughed through them - from reading other posts on here I am not optimistic!

BUT if I put in a claim for JSA in the mean time what are the implications? By claiming JSA do I effectively destroy the already slim chances of my furlough application being successful? i.e will the umbrella company turn round and decline my furlough application because i am on JSA?

Conversely, delaying applying for JSA costs me money because the claim is backdated to the date of application. So the delay in the furlough decision is costing me money. My though was to apply for JSA as back up and then cancel it if my furlough application was to be successful.

I am sure other contractors must find themselves in a similar Catch 22?

[Lilibet]

My accountant said one can claim for either JSA or furlough, not both

[Wary]

My understanding (someone please correct me if I'm wrong) is to that apply for JSA/UC, I'd need to first end my employment with the brolly … at which point there would be no chance of ever being furloughed.

There are undoubtedly many contractors in same Catch-22 position (myself included), and any Umbrella who strings their employees along by saying it is still under consideration when they know there is virtually no chance that they'll ever participate in CJRS, is doing them a great disservice. But I suppose it is possible that the government may soon announce new rules that actually make it worth the Brolly's while …

[andydd68]

My accountant said one can claim for either JSA or furlough, not both

Thats not true.

You can claim for UC at anytime employed or unemployed, many employed people claim UC to top up their wages, it will be the same for furloughed workers..as many of us will only be on £500 a month, whether you get much UC is another matter.

Also worth pointing out you can claim UC as an individual OR as a self employed person (my understanding is that this includes Ltd/paye)...you claim basically saying I have a businesses but its not doing that well, you then have to show company turnover etc, there was a minumum income floor calculation which was rather confusing although this was dropped as part of the covid19 measures.

My UC claim is currently going through so Ill be able to fill you in more later.

Self-employment and Universal Credit - GOV.UK

*There seems to be a lot of accountants who dont know what they are talking about !

[JamesC34]

Thats not true.

You can claim for UC at anytime employed or unemployed, many employed people claim UC to top up their wages, it will be the same for furloughed workers..as many of us will only be on £500 a month, whether you get much UC is another matter.

Also worth pointing out you can claim UC as an individual OR as a self employed person (my understanding is that this includes Ltd/paye)...you claim basically saying I have a businesses but its not doing that well, you then have to show company turnover etc, there was a minumum income floor calculation which was rather confusing although this was dropped as part of the covid19 measures.

My UC claim is currently going through so Ill be able to fill you in more later.

Self-employment and Universal Credit - GOV.UK

*There seems to be a lot of accountants who dont know what they are talking about !

You can claim UC while still employed, but not JSA.

[JamesC34]

My understanding (someone please correct me if I'm wrong) is to that apply for JSA/UC, I'd need to first end my employment with the brolly … at which point there would be no chance of ever being furloughed.

There are undoubtedly many contractors in same Catch-22 position (myself included), and any Umbrella who strings their employees along by saying it is still under consideration when they know there is virtually no chance that they'll ever participate in CJRS, is doing them a great disservice. But I suppose it is possible that the government may soon announce new rules that actually make it worth the Brolly's while …

I would have thought in this circumstance there would be a strong case for backdating JSA payments.

You could say that you did not initially apply for JSA on the expectation of being furloughed.

[northernladuk]

I would have thought in this circumstance there would be a strong case for backdating JSA payments.

You could say that you did not initially apply for JSA on the expectation of being furloughed.

No chance. They don't backdate it except in exceptional circumstances which tends to be around health and the inability to claim rather than any planning type things.

[andydd68]

You can claim UC while still employed, but not JSA.

I think you cant claim JSA at all now..its dead

[Wary]

I think you cant claim JSA at all now..its dead

I think you can still claim New Style JSA which, unlike UC, is not means tested. So you don't need to provide details of savings, but only to have made sufficient NI contributions over the past 2/3 years.
See Find out if you may be eligible for New Style Jobseeker's Allowance - DWP - Jobseeker’s Allowance
I've filed my application even though I'm still technically an employee of my Umbrella, which is OK as I'm working less than 16 hours (i.e. zero hours). The application has been provisionally "accepted" - just awaiting a call to discuss it further.

[andydd68]

I think you can still claim New Style JSA which, unlike UC, is not means tested. So you don't need to provide details of savings, but only to have made sufficient NI contributions over the past 2/3 years.
See Find out if you may be eligible for New Style Jobseeker's Allowance - DWP - Jobseeker’s Allowance
I've filed my application even though I'm still technically an employee of my Umbrella, which is OK as I'm working less than 16 hours (i.e. zero hours). The application has been provisionally "accepted" - just awaiting a call to discuss it further.

Sounds a confusing mess !

"New Style JSA

New Style JSA is paid if you have enough national insurance contributions and can either be claimed on its own or with a top up of Universal Credit (UC) if you live in a full service UC area and need to claim for other family members or housing costs, for example. In the latter case any New Style JSA received would be treated as income for the UC claim and deducted.

In practise it can be difficult to claim practically as the UC form does not specifically mention New Style JSA and DWP staff and work coaches have at times been wrongly advising claimants that they are now in a full service UC area and can no longer claim JSA – this is, of course, correct if the claimant wishes to claim income based JSA but not if they are eligible to claim New Style JSA.

This is a very serious problem as it may mean that some claimants fail to get any benefit at all eg if they have too much savings or a partner in full time employment. Those who are wrongly refused will miss out on either £57.90 or £73.10 (depending on age) for 6 months."