Employed Or Unemployed: What Benefits Could You Be Eligible For

Employed Or Unemployed: What Benefits Could You Be Eligible For

There is assistance if you are looking for a new job, are out of work, or have been affected by redundancy. The majority of this includes universal credit and jobseeker's allowance (JSA), for which you may be entitled, as well as the Citizens Advice Bureau (CAB). These benefits could help whilst you’re looking for your next job or as you take the first steps in your new career.

1. Key Points at a Glance:
2. When To Claim Benefits
3. Where Do You Start?
4. Types Of Benefits
5. Universal Credit
6. Jobseeker's Allowance
7. Child Benefit
8. Housing Benefit
9. Employment And Support Allowance
10. Key Takeaways

When To Claim Benefits: If You Are Unemployed, On Low Income or Unable to Work

There are some instances where it may be possible for you to claim unemployment benefits:

If You're Unemployed

An unemployed person doesn't have a regular source of income. If a person is over 16 and actively looking for paid work, they are considered to be unemployed. Being fired, laid off, or leaving a company can all result in unemployment.

The eligibility for after-resignation benefits is different from the rest, though. For instance, if you voluntarily quit your job, you probably won't be eligible for benefits for three months unless you can prove that you had a good reason for doing so. Your job's pay might be one of these acceptable explanations if it was below the minimum wage.

If You're on Low Income

Working part-time when you'd prefer to work full-time can result in lower-than-average pay. Universal Credit can top up low earnings whatever hours you work. If you work fewer than 16 hours a week on average and have paid enough National Insurance contributions, you may also be able to claim New Style Jobseeker's Allowance.

If You're Temporarily Unable to Work

If you are temporarily unable to work, you may be eligible for unemployment benefits. A person may be unable to work momentarily due to an accident or illness. In these instances, a person may be entitled to Statutory Sick Pay from their employer for up to 28 weeks. Since April 2026, SSP is paid from the first day of sickness and there is no longer a minimum earnings level: lower earners get 80% of their normal weekly earnings or the standard weekly rate, whichever is lower. If you are not entitled to SSP, or your statutory sick pay period has expired, you may be able to claim Employment and Support Allowance or Universal Credit instead.

Where do You start?

Use a benefits calculator:

A benefits calculator can help you determine how much financial assistance you may be eligible for. It will ask you some questions and then suggest which types of assistance you are most likely to be eligible for. You can also use the free benefits calculators listed on GOV.UK to learn about other benefits and get a more complete understanding of all the assistance that may be available to you and how much you may be eligible for.

Types Of Benefits

Below is a list of some types of unemployment benefits and the eligibility criteria for each:

1. Universal Credit

Universal credit is a single benefit that has replaced six others: income-based Jobseeker's Allowance, income-based Employment and Support Allowance, Income Support, Child Tax Credit, Working Tax Credit, and Housing Benefit. Universal Credit is paid on a monthly basis.

Who Can Get Universal Credit

You can apply for Universal Credit if you have a low income or are jobless. Universal Credit is normally only available to adults over the age of 18, however depending on their circumstances, even as young as 16 or 17 may be eligible.

If you have a medical condition or disability that prohibits you from working or limits the amount of work you can perform, Universal Credit can aid you in both financial and work-related ways. And, while you can't normally claim Universal Credit if you're in full-time study or training, there are certain exceptions. Read the detailed guidance on eligibility and Universal Credit and students to find out more.

If you’re an EU, EEA or Swiss citizen, you and your family usually need settled or pre-settled status under the EU Settlement Scheme to get Universal Credit. If you have not yet applied to the EU Settlement Scheme, you must apply as soon as possible.

You can use a benefits checker to help you understand what benefits you could be entitled to. You will be asked to enter information about your circumstances, and it will tell you which benefits you might be able to apply for. One of those may be Universal Credit.

A benefits calculator may also be useful to get an estimate of what you may be entitled to when you claim Universal Credit. You could be asked to provide additional details about your circumstances to help generate a more accurate estimate of your monthly payment.

The amount you get is worked out each month, so may be different from one month to the next if you earn a different amount, or if your circumstances change.

You can check with a local benefits advisor to find out what you could be entitled to with Advice Local. If you want to go straight to making a claim, visit Universal Credit on GOV.UK.

What If I’m Starting Work but Still Need Help

If you've been offered or begun a job, there may be additional resources to help you remain on track and make the most of the opportunity.

Universal Credit adapts to your income and might boost your earnings while you are working.

Your Universal Credit payments may be cut if you work part-time or for a low income, but you may still get some Universal Credit to complement your wages.

This assures that taking on employment is financially advantageous, and it may make it simpler to begin in a new career or field.

Will I Get Work Allowance

You may be entitled to keep more of your Universal Credit if you work and have children, or if you have a health condition or disability that affects your capacity to work.

This is known as a Work Allowance, and it permits you to work additional hours before your Universal Credit is decreased.

Your circumstances will influence the amount of your Work Allowance.

What About Childcare

If you work or have accepted a job offer, you may be eligible to recover up to 85% of your childcare costs to help you maintain your employment while caring for your family. It doesn't matter how many hours you work as long as you're working. There is a monthly cap on the amount you can claim back, which is higher if you have two or more children; at the time of writing it was £1,071.09 per month for one child and £1,836.16 per month for two or more. Check GOV.UK for the current figures.

Financial Support for Working with A Health Condition or Disability

If you have a disability or a health condition that affects your capacity to work, Access to Work is a government grant programme that can help you acquire or stay in work. Your help will be customised to your unique needs, and it may include a grant to cover the extra expenses of practical support in the workplace. This could pay for additional assistance in addition to any reasonable adjustments you've agreed upon with your employer, such as:

1. Support workers, including interpreters.
2. Specialised equipment to make work easier.
3. Assistance with the additional costs of travel to and from work due to disability.
4. A mental health support service.

You can check the full eligibility criteria and apply for Access to Work on GOV.UK.

Universal Credit If You're Self-Employed

If you are self-employed, Universal Credit will assist you in growing your business. To get this support you will need to be able to show that:

1. Your primary job or main source of income is self-employment.
2. You receive regular work from this source
3. Your work is organised (you have invoices and receipts, or accounts),
4. You anticipate making a profit.

If you can demonstrate all of these things, you will be regarded 'gainfully self-employed.' If you are unable to demonstrate all of these items, you may be required to seek alternative employment in order to continue receiving Universal Credit.

Universal Credit If You're Employed

If you work, Universal Credit does not restrict the amount of hours you may work, and your payments will drop as your earnings increase. You will be able to work in temporary positions without having to make a new claim, and Universal Credit will assist you if you are between employment.

If you want to be eligible for Universal Credit, you must make every attempt to obtain work or increase your income. The things you must perform will be listed on your universal credit Commitment.

How Universal Credit Is Calculated If You Are Working

The amount of Universal Credit you receive will be determined by your circumstances, including your income and the number of children you have. Your Universal Credit payments will reduce as you earn more money. You can earn a certain amount before your Universal Credit payments are reduced, if you or your partner:

1. Are responsible for a child or young person
2. Have a disability or health condition that affects your ability to work

How Often You Are Paid Can Affect Your Universal Credit

Your Universal Credit payment is determined by your wages throughout an Assessment Period (one calendar month). The first Assessment Period begins when you apply for Universal Credit. Your Universal Credit is determined at the conclusion of each Assessment Period.

Reduced Universal Credit Payments If You Work

Your Universal Credit payments will decrease as you earn more and then increase if you stop working or your earnings decrease.

A benefits calculator can help you understand how getting a job or increasing your income will affect your benefits.

It is vital that you enter your information carefully into a benefits calculator to receive an estimate of the benefits to which you may be eligible. You should get neutral counsel before making any changes to your benefits.

If you get Universal Credit and then start working, you must notify Universal Credit of your new employer to ensure that you receive the correct amount.

What Happens If You Earn Too Much Money

If you make too much money, your claim will be closed. Universal Credit will tell you if your claim is being closed. If your circumstances change and you wish to reclaim Universal Credit, you must do so within six months of your prior claim ending. You must make a new claim if you need to reapply for Universal Credit more than six months after your prior claim expired.

1. Jobseeker's allowance (JSA)

Jobseeker's Allowance is a payment for people who are unemployed or working fewer than 16 hours a week. Income-based JSA has been replaced by Universal Credit; the version you can claim today is New Style JSA, which depends on the National Insurance contributions you have paid, usually over the last 2 to 3 tax years. It is paid for up to 182 days (about 6 months), and the weekly amount depends on your age. You can claim it on its own or alongside Universal Credit.

1. Child Benefit

If you are responsible for bringing up a child, even if they are not biologically yours, you may be able to claim Child Benefit. It helps with the costs of raising children under 16, or under 20 if they stay in approved education or training. It is paid at a higher weekly rate for the eldest or only child and a lower rate for each additional child; at the time of writing the rates were £27.05 and £17.90 a week. Rates usually change every April, and if you or your partner earn a higher income you may have to pay some or all of it back through the High Income Child Benefit Charge.

1. Housing Benefit

Housing Benefit is being replaced by Universal Credit. For most people of working age, help with rent is now paid as the housing element of Universal Credit. You can only make a new claim for Housing Benefit if you have reached State Pension age or live in supported, sheltered or temporary housing. You usually cannot get Universal Credit if you have more than £16,000 in money, savings and investments. The amount of help you get with rent depends on things like your household income, where you live and whether you have a spare room.

1. Employment and support allowance (ESA)

An employment and support allowance is an allowance paid to employees who are unable to work due to a disability or illness. You cannot get ESA while you are getting Statutory Sick Pay, but you can apply up to three months before your SSP is due to end. The version you can claim today, New Style ESA, depends on your National Insurance contributions; if you need help with living costs on a low income, you would claim Universal Credit instead of, or as well as, New Style ESA. You must be over 16 and under State Pension age; Northern Ireland has its own benefits system.

Key Takeaways

If you are not working or are on a low income there may be several benefits you can claim, however, this will depend on your circumstances.

Temporary workers have the same rights as permanent employees to receive unemployment benefits such as Jobseeker's Allowance or Universal Credit under UK legislation. New Style Jobseeker's Allowance is only available to people who have paid enough National Insurance contributions in recent tax years, while Universal Credit is means-tested and can help people on a low income.

Remember that just because you take on a temporary position does not imply you will lose your benefits. You may be eligible for a partial payment based on your salary and working hours. If you declare any changes, the new amount will be calculated for you.

**Disclaimer: Jober.uk is not linked with any of the companies, institutions, or organisations mentioned in this article. This article is based on data accessible at the time of writing, which is subject to change at any time. We make no promises that this material is always up to date. Please visit GOV.UK or a local advice service such as Citizens Advice for the most up-to-date information on this subject.