Starting or looking for work
Key information
There are a number of different schemes to help people
on a low income who are looking for a job or starting a new
job.
Applies to: England, Wales, Scotland and
Northern Ireland
Age rules: you must be 16 or over, but in
some circumstances you must be 25 or over
Type of benefit: Means tested
Taxable: No
Administered by: JobCentre Plus
Index
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Who does it help?
There are a number of different schemes to help people on a low
income who are looking for a job or starting a new job.
Eligibility for these schemes depends upon whether you were
getting certain benefits before you started the new job.
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What schemes are available?
Job Grant
This is single tax-free payment to encourage you to consider and
accept work that otherwise you could not take because of the costs
of going back to work. You can spend the money in any way you want
but it will normally go towards things like new clothes or
transport. You must have been getting certain benefits like
Income Support, Employment and Support Allowance or Incapacity Benefit for at least 26 weeks
without a break.
You can claim a Job Grant when you take up full-time work (at
least 16 hours a week) and you expect the work to last for at least
five weeks.
A Job Grant is £100 for single people and couples without
children and £250 for lone parents and couples with children
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Employment on trial scheme
If you are a previously unemployed person, you may be able to
try out a job under this scheme without risking losing
benefits if you have to leave the job.
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Extended payment
You may be able to get an extended payment when
you start a new job, or increase your hours or wages, and come off
certain out-of-work benefits. This means you may continue to
get Housing Benefit (England, Wales, Scotland and Northern
Ireland) and Council Tax Benefit paid at the same rate
for the first four weeks of your new work arrangements.
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Return-to-Work Credit
You may be entitled to Return-to-Work Credit if you are getting
Incapacity Benefit, Income Support because of
incapacity (existing claimants only - you cannot make a new claim
for this benefit) or Employment and Support Allowance and you take a
job where you are working for at least 16 hours a week. You must
apply for it within five weeks of starting your new job. You can
qualify for Return-to-Work Credit if you become self-employed as
long as you meet the other conditions.
You must earn no more than £15,000 per year. This is not a
taxable benefit.
The Return-to-Work Credit is £40 a week
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In-work Credit
You may be able to get in-work credit if you are a single parent
claiming:
and
- you take a job where you are working at least 16 hours a week.
In some places, in-work credit is available for all parents
responsible for a child, not just single parents. You get it
for up to 52 weeks.
In-work Credit is £40 a week or £60 in London. This is not a
taxable benefit.
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In-Work Emergency Discretion Fund
If you are a single parent who has come off benefits and started
work, you may need money to cope with unexpected financial problems
that could stop you carrying on with your job. If you are in this
situation, you could apply to the In-work Emergency Discretion
Fund. In some areas, all parents qualify, not just single
parents.
You must be working for at least 16 hours a week. Your job must
be expected to last for at least 26 weeks and you must have been in
the job for less than 26 weeks. Your Jobcentre Plus personal
adviser makes the decision about whether you should get the money.
Ask your local Jobcentre Plus office for more details.
Hw much you may be able to claim depends on your personal
circumstances, but you could get up to £300 from the In-work
Emergency Discretion Fund.
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New Enterprise Allowance
The New Enterprise Allowance programme is intended to help
unemployed people start a business through business mentoring and a
weekly allowance. You can claim it if you have been claiming JSA
for 26 weeks or more and live in England, Scotland or Wales.
If you take part in the New Enterprise Allowance scheme, you
will get access to a volunteer business mentor who will provide
guidance and support as you develop your business plan and through
the early months of trading. Once you show that you have a viable
business with potential for growth, you will be able to access
financial support. A weekly allowance paid at £65 a week for the
first 13 weeks and £33 a week for a further 13 weeks will be
available.
There is also the chance to apply for a loan of up to £1,000 to
help with business start-up costs.
See the Directgov website for
more information on the New Enterprise Allowance.
What help do the schemes provide?
Usually you get money from the Government that you can spend as
you want. The money is paid into your bank account or building
society account or in some cases at a post office. If you are
getting an extended payment of Council
Tax Benefit, this will be paid in the normal way, that is, you
will not usually get the money directly but it will go towards
reducing your Council Tax bill.
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How to claim
Contact your local
Jobcentre Plus (link opens in a new
window) or Jobs
and Benefits office in Northern Ireland (link opens in a new
window) to claim:
- help under the employment on trial scheme
- Return-to-work credit
- In-work credit.
A Job Grant is paid automatically. However, you should let
your local Jobcentre Plus office or benefits office know when you
start a new job or if your hours of work increase.
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Documents you need
You will need to give:
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Change of circumstance
If you are receiving benefits or tax credits, your entitlement
may change once you start work. Contact your local benefits office
and/or HM Revenue and Customs and explain your new circumstances.
It is very important to do this as otherwise you may be committing
a criminal offence.
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Further help
The
Citizens Advice website (link opens in a new window) and
Directgov, the government website (link opens in a new window)
has more information about these schemes.
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This information has been produced by Citizens Advice.
Last updated: 24 November 2011
Turn2us - to access benefits & grants.
