Benefits and tax credits when you’ve lost your job
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.
Lost your job? What help can you get?
Jobseeker’s Allowance is gradually being phased out and replaced by Universal Credit.
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 claim Jobseeker’s Allowance you might also be eligible for other support, such as tax credits or help with rent or mortgage costs.
Jobseeker’s Allowance is usually paid every two weeks. Tax credits are usually paid every four weeks.
Your local Jobcentre Plus can tell you whether you should claim Jobseeker’s Allowance or Universal Credit.
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;
- 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;
- etails 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 that 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.
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.
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
Depending on your income and savings, Housing Benefit or Local Housing Allowance could pay some or all of your rent.
Find out more about Housing Benefit on GOV.UK
If you’re a homeowner, you might qualify for Support for Mortgage Interest payments.
You might also be able to get help with Council Tax:
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.
You can search for grants on Turn2us
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 that 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.
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