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Jobseeker's Allowance

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Mandatory Work Activity (MWA) was a workfare programme in the United Kingdom whereby individuals had to work for their benefits or risk being "sanctioned" and losing them. MWA started in May 2011, but in November 2015 the DWP confirmed it was "not renewing" it. An academic analysis by the Department for Work and Pensions cast doubt on the effectiveness of MWA, and despite finding "little evidence" that workfare improved claimants gaining paid employment, the DWP ignored the findings of the study, and in June 2012, the scheme received a £5m expansion. A similar but little-known scheme "Jobseeker Mandatory Activity" (JMA) was piloted by New Labour in 2006, but did not last beyond 2008. JMA targeted those claimants 25 and over, who had been unemployed for 6 months or more and made claimants liable to "sanction" for non-compliance.

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103-725: Jobseeker's Allowance ( JSA ) is an unemployment benefit paid by the Government of the United Kingdom to people who are unemployed and actively seeking work. It is part of the social security benefits system and is intended to cover living expenses while the claimant is out of work. JSA is administered by the Department for Work and Pensions (DWP) in England, Wales, and Scotland, and in Northern Ireland by

206-508: A Jobcentre Plus every two weeks to "sign on", that is, to certify that they are still actively seeking work. Until 2020, claims for Jobseeker's Allowance were maintained by the legacy Jobseeker's Allowance Payment System (JSAPS) . Unemployment Benefit was first introduced in 1911 under the National Insurance Act 1911 to job seekers who had paid National Insurance contributions ("the stamp"). The maximum amount payable

309-562: A citizen's dividend ( Bürgergeld ). Mandatory Work Activity The legality of the scheme was indirectly challenged in the case Caitlin Reilly and Jamieson Wilson v Secretary of State for Work and Pensions . The High Court partially found in the claimants' favour; they then appealed to the Court of Appeal, which ruled in February 2013 that the 2011 Regulations 'were unlawful and that

412-544: A fair wage . In February 1922 a means test was introduced which excluded some, such as single adults who lived with relatives, from receiving benefit payments. As a direct consequence of the return from war of injured servicemen, the Disabled Persons (Employment) Act 1944 was brought into force to enable these to secure employment. After the Second World War, National Assistance was introduced by

515-461: A Flexible New Deal scheme started using the private sector to provide tailored employment and skills support, with return-to-work performance incentives for the providers. In Northern Ireland the New Deal was replaced in 2008 by a similar scheme known as Steps to Work. This scheme was administered by the Department for Employment and Learning which operates Jobs & Benefits Offices jointly with

618-459: A benefit of 50% of the minimum wage to supplement the employee's income. The UI also provides financial assistance and capacity-building programs for unemployed or disabled individuals who want to start their own businesses. Armenia also has a Paid Public Works program that provides jobseekers and the disabled with temporary public employment for three months. In Australia , social security benefits, including unemployment benefits, are funded through

721-565: A business, nor could the job seeker choose what type of unpaid work they did. In nearly all cases the unpaid placement involved shop work. From 2012, work placement advisors would receive £5,600 should they find work for a person leaving prison who keeps the job for two years. According to the Government, from June 2011 only 1 in 5 participants in the Work Programme remained off benefits for over six months. Until 2020, men who reached

824-652: A claim, a customer must have actually paid NI contributions for the same number of weeks in one of the last two tax years (the remaining 18 months could be either paid, or credited contributions). When entitlement to JSA(C) is exhausted, Universal Credit may then have become payable if eligible (see below). Certain other benefits including Statutory Sick Pay , Statutory Paternity Pay , Statutory Maternity Pay , statutory adoption pay , Employment and Support Allowance , bereavement benefit , Carer's Allowance and JSA(C) itself also counted towards Class 1 contributions and were called "Credited Class 1 contributions". If there

927-415: A claimant commitment. The contract can be changed at one-to-one interviews. Its terms include that claimants state: Whether claimants are paid therefore depends on whether they uphold the contract they have agreed to – from a political theory known as Welfare Contractualism , first expressed in the 1998 paper "New Ambitions for our Country: A New Contract for Welfare". at the heart of the new state will be

1030-451: A contract between citizen and government based on responsibilities and right Applicants qualified by conforming to all of the following requirements: New-style (contribution-based) Jobseeker's Allowance ( JSA(C) ) entitlement is based on Class 1 National Insurance contributions in the two complete tax years preceding the benefit year of claim. This allowance is paid regardless of assets; however, any personal or occupational pension over £50

1133-578: A day since 1994, and there have been calls to raise this by politicians and NGO groups. On 22 February 2021, the Prime Minister of Australia, Scott Morrison , announced that the JobSeeker base rate would be increased by A$ 50 a fortnight from April 2021. It is also intended to increase the threshold amount recipients can earn before their payment starts to be reduced. The system in Australia

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1236-493: A degree and two years of full-time work. The latter requires participation in training, education, or other employment support, which may be mandated on pain of losing the benefit, but may be paid after the regular benefits have been either maxed out or not available. Although the unemployment funds handle the payments, most of the funding is from taxes and compulsory tax-like unemployment insurance charges. Regardless of whether benefits are paid by Kela or from an unemployment fund,

1339-639: A form of unemployment benefits. This includes all 37 OECD countries. Among OECD countries for a hypothetical 40-year-old unemployment benefit applicant, the US and Slovakia are the least generous for potential benefit duration lengths, with PBD of six months. More generous OECD countries are Sweden (35 months PBD) and Iceland (36 months PBD); in Belgium, the PBD is indefinite. Armenia 's Unemployment Insurance (UI) scheme has been in force since 1991. In 2005, Armenia adopted

1442-525: A job interview instead of attending the job centre. The latter included letters sent by the DWP to the wrong address and people who arrived on time at the job centre but found an unusually long queue. The Independent cited a man who had a heart attack during a work capability assessment and was sanctioned for not completing it. Two cases show reasonably foreseeable consequences for sanctioned diabetic claimants: one resorted to begging for food, whilst another who

1545-506: A maximum of six-months. According to The Economist , in 2015 roughly 2% of welfare expenditure in the UK was spent on unemployment benefits; the bulk was spent in other areas. The average number of claimants between the years 2003 and 2008 was 814,000 and average number of new claims was approximately 2,463,000. Nearly 40% of income-based claimants during 2003 were also claiming Housing Benefit. The DWP for England and Wales showed one third of

1648-411: A parent or parents, the basic rate is A$ 91.60 per week. For over-18- to 20-year-olds living at home this increases to A$ 110.15 per week. For those aged 18–20 not living at home the rate is A$ 167.35 per week. There are special rates for those with partners and/or children. The second kind of payment is called ' JobSeeker Payment ' (called Newstart until 20 June 2020) and is paid to unemployed people over

1751-462: A percentage of the applicant's former income. A typical replacement percentage is 50–65%. Some countries offer much higher levels of wage replacement, such as the Netherlands (75%), Luxembourg (80%), and Denmark (90%). There are often caps on the maximum benefit level, ranging from 33% of a country's average wage (Turkey) to 227% of its average wage (France). The average maximum benefit level

1854-520: A report in 2008 by the Social Market Foundation there were approximately 100,000 long-term unemployed persons claiming JSA, at any given time. From 2010 to April 2011 the number of claimants having sanctions imposed increased to 75,000 persons amid claims that DWP staff deliberately made claiming more difficult and were required to refer 3 people a week for sanctions . The number of disabled people sanctioned doubled to 20,000 over

1957-519: A sharp fall in Liberal support in the Atlantic provinces in the 1997 election . In 2001, the federal government increased parental leave from 10 to 35 weeks, which was added to preexisting maternity benefits of 15 weeks. In 2004, it allowed workers to take EI for compassionate care leave while caring for a dying relative, although the strict conditions imposed make this a little used benefit. In 2006,

2060-416: A sliding scale function of the applicant's past employment history and age, or it may be a set length for all applicants. In Argentina, for example, six months of work history results in a PBD of two months, while 36 months or more of work history can result in a PBD of a full year, with an extra six months of PBD to applicants over the age of 45. Most countries calculate the amount of unemployment benefit as

2163-504: A subject in cases before the Federal Constitutional Court . The possibility of sanctions cutting someone's benefits to zero was declared unconstitutional in 2018. In July 2022 Germany's government implemented a one-year moratorium on sanctions, permitting only a 10% cut for repeatedly missing appointments ( Meldeversäumnis ). This measure was taken as a precursor to restructuring type II unemployment benefits into

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2266-554: A vacancy be available is obliged to give a "good reason" for the choice or their monies are to be withheld. The Work and Pensions Committee of the House of Commons discovered single parents, care leavers and claimants with health problems and disabilities were "disproportionately vulnerable" to, and impacted by, sanctions. There was an excessive human cost. Children could become "collateral damage" since parents losing benefits affects them. Examples of "extreme hardship and distress" included

2369-551: A waiting period before being able to receive benefits. In the US, there is no waiting period on a temporary basis currently due to the COVID-19 pandemic, but in many states there is a waiting week. In Germany and Belgium, there is no waiting week. The current waiting period in Canada is seven days. Countries implement varied potential benefit durations (PBD), which is how long an individual is eligible to receive benefits. The PBD may be

2472-417: A way that does not push people further into poverty . People need support not punishment. They need understanding not condemnation. The Guardian has listed ten cases of stopped benefits which it regards as either for "trivial reasons" or due to DWP "administrative errors". The former included three people who were in hospital due to their own sickness or attending a sick partner and a person who went for

2575-543: A week would result in deductions. There were also other caveats (related to job-seeking activity) which excluded payment. Many older citizens seeking work could not receive payments, despite qualifying through NI contributions, because they had pension income. Self-employed people do not pay Class 1 contributions, and may not have been able to claim JSA(C) until their case had been decided. However, they were both still eligible for NI credits (see below). JSA(C) may be claimed for only 26 weeks in any benefit year. In order to make

2678-498: A wheelchair user who "sofa-surfed" or slept in a college library for a year when her whole benefit was wrongly withdrawn. A man was sanctioned because he missed a job centre appointment three days after he went to hospital with severe epileptic seizures. The committee found the impact of sanctions had not been properly evaluated and was "pointlessly cruel". Other reasons to be denied money are: Sanctions have been found to be ineffective in getting claimants into work but do great harm to

2781-440: Is 77% among OECD countries. Most benefit payments are constant over the course of the PBD, though countries such as the Netherlands, Sweden, Hungary, Slovenia, Spain, and Italy have a declining benefit path, in which the wage replacement percentage decreases over time. Most countries require those receiving unemployment benefits to search for a new job, and can require documentation of job search activities. Benefits may be cut if

2884-581: Is designed to support recipients no matter how long they have been unemployed. In recent years the former Coalition government under John Howard has increased the requirements of the Activity Agreement, providing for controversial schemes such as Work for the Dole , which requires that people on benefits for six months or longer work voluntarily for a community organisation regardless of whether such work increases their skills or job prospects. Since

2987-685: Is informally called "being on the dole". "Dole" here is an archaic expression meaning "one's allotted portion", from the synonymous Old English word dāl . In Australia, a " dole bludger " is someone on unemployment benefits who makes no effort to find work. The first modern unemployment benefit scheme was introduced in the United Kingdom with the National Insurance Act 1911 , under the Liberal Party government of H. H. Asquith . The popular measures were introduced to stave off poverty inflicted through unemployment, though they also gave

3090-523: Is no government contribution to this fund. The amount a person receives and how long they can stay on EI varies with their previous salary, how long they were working, and the unemployment rate in their area. The EI system is managed by Service Canada , a service delivery network reporting to the Minister of Employment and Social Development Canada . A bit over half of EI benefits are paid in Ontario and

3193-416: Is no longer available. Universal Credit was due to replace Jobseeker's Allowance and other benefits for 500,000 new claimants from October 2013, and eventually will replace income-based Jobseeker's Allowance entirely. To be eligible for JSA, claimants must state that they are actively seeking work by filling in a Jobseeker's Agreement form and attending a New Jobseeker interview (NJI). They must also go to

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3296-610: Is no recognition of professional qualifications: An academic has to join the menial workforce, regardless of the fact that their potential might be wasted in that industry. Neither are one's personal religious or ethical concerns relevant: Prostitution is legal in Germany (although as of 2021 no job centre has urged any beneficiary to engage in prostitution). In exchange for that, beneficiaries are assisted in that process, e.g. by reimbursing travel expenses to interviews, receiving (free of charge) training in order to increase their chances on

3399-527: Is not a requirement. Due to wage dumping and other labour market dynamics, a large number of working beneficiaries supplement their monthly income. They have the same obligations as non-working beneficiaries. People receiving benefits are obligated to cease their eligibility at all costs, but at least minimise their dependence on welfare until no money would be paid. That means, they are obliged to seek for jobs nationwide, and accept every job offered, otherwise sanctions (retrenchment) may be applied. There

3502-486: Is now 66 for both men and women, as of 2020. All customers must move from JSA to either State Pension, or Pension Credit (if eligible) at the State Pension age. A special part-week payment of State Pension is paid for the benefit week including the customer's birthday, making the claim continuous. A claimant's Jobseeker's Allowance may be stopped as a punishment. A person choosing to remain out of employment should

3605-510: Is paid to young people aged 16–20 (or 15, if deemed to meet the criteria for being considered 'independent' by Centrelink). Youth Allowance is also paid to full-time students aged 16–24, and to full-time Australian Apprenticeship workers aged 16–24. People aged below 18 who have not completed their high school education, are usually required to be in full-time education, undertaking an apprenticeship or doing training to be eligible for Youth Allowance. For single people under 18 years of age living with

3708-595: Is responsible for 3 benefits: ARE, ACA and ASR The main ARE scheme requires a minimum of 122 days membership in the preceding 24 months and certain other requirements before any claims can be made. Employers pay a contribution on top of the pre-tax income of their employees, which together with the employee contribution, fund the scheme. The maximum unemployment benefit is (as of March 2009) 57.4% of €162 per day (Social security contributions ceiling in 2011), or €6900 per month. Claimants receive 57,4% of their average daily salary of

3811-454: Is the first-tier program supporting unemployed people. It is designed like an insurance, involuntary unemployment through no personal fault being the "event of damage". It is therefore also known as unemployment insurance ( Arbeitslosenversicherung ). In order to qualify, the unemployed person All workers with a regular employment contract ( abhängig Beschäftigte ), except freelancers and certain civil servants ( Beamte ), contribute to

3914-448: Is therefore €2964 (in 2012). If the benefits fall below the poverty line it is possible to supplement type I unemployment benefits with type II benefits if its conditions are met as well. Type I unemployment benefits are only granted for a limited period of time, the minimum being 6 months, with a maximum of 24 months in the case of old and long-term insured people. This takes account for the difficulty older people face when re-entering

4017-463: The Department for Communities . Claimants must be between 18 years of age and the State Pension age . There is now one form of the benefit, based on National Insurance contributions, referred to by the DWP as New Style Jobseeker's Allowance or New Style JSA for short. The previous form of the benefit, which was based on income and had replaced Income Support for most customers in 1996,

4120-632: The Labor government under Kevin Rudd was elected in 2008, the length of unemployment before one is required to fulfill the requirements of the Activity Agreement (renamed the Employment Pathway Plan) has increased from six to 12 months. There are other options available as alternatives to the Work for the Dole scheme, such as undertaking part-time work or study and training, the basic premise of

4223-599: The National Assistance Act 1948 ( 11 & 12 Geo. 6 . c. 29), allowing anyone of working age on a low income to apply for support. National Assistance was replaced by Supplementary Benefit in November 1966, and Unemployment Benefit claimants could transfer to this after their initial entitlement had expired. Supplementary Benefit was later replaced by Income Support in April 1988. In 1995, legislation

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4326-520: The 2009, 2010 and 2011 annual deficits by increasing EI premiums. On 11 December 2008, the Supreme Court of Canada rejected a court challenge launched against the federal government by two Quebec unions, who argued that EI funds had been misappropriated by the government. The level of benefit is set between the minimum wage and the minimum living allowance by individual provinces , autonomous regions and municipalities . Each Member State of

4429-476: The Act included Robert Laurie Morant and William Braithwaite. By the time of its implementation, the benefits were criticized by communist parties, who saw such insurance as a means to prevent workers from starting a revolution, while employers and tories sometimes saw it as a "necessary evil". The scheme was based on actuarial principles and was funded by fixed amounts from workers, employers, and taxpayers. It

4532-590: The Canadian provinces. A significant part of the federal fiscal surplus of the Jean Chrétien and Paul Martin years came from the EI system. Premiums were reduced much less than falling expenditures – producing, from 1994 onwards, EI surpluses of several billion dollars per year, which were added to general government revenue. The cumulative EI surplus stood at $ 57 billion at 31 March 2008, nearly four times

4635-531: The DWP was potentially obliged to repay if Reilly and Wilson won their case in the Supreme Court. The Government sought to avoid having to make these repayments by retrospectively changing the law through the Jobseekers (Back to Work Schemes) Bill , which became law on 26 March 2013. However, Mandatory Work Activity was created under its own set of regulations so though the ruling touched on many of

4738-505: The Employment Pathway Plan being to keep the welfare recipient active and involved in seeking full-time work. For people renting their accommodation, unemployment benefits are supplemented by Rent Assistance, which, for single people as at 20 September 2021, begins to be paid when fortnightly rent is more than A$ 124.60. Rent Assistance is paid as a proportion of total rent paid (75 cents per dollar paid over A$ 124.60 up to

4841-485: The European Union has its own system and, in general, a worker should claim unemployment benefits in the country where they last worked. For a person working in a country other than their country of residency (a cross-border worker), they will have to claim benefits in their country of residence. Two systems run in parallel, combining a Ghent system and a minimum level of support provided by Kela , an agency of

4944-730: The European convention on human rights and the rule of law, as an interference in the judicial process by the legislature'. The Department for Work and Pensions worked to keep secret the list of organisations participating in the MWA scheme. A freedom of information request submitted around March 2012 resulted in a first-tier tribunal ruling in May 2013 that the DWP must reveal these names. The deadline for appeals expired in October 2013. A provisional list of organisations using workfare has been collected by

5047-498: The JobCentre. In both cases, the amount of benefit paid was the same (an additional Pensioner Premium was added to Income-based JSA). National Insurance credits were paid by the Government on his behalf, even if he claimed another benefit; this came to an end in 2016, with the new State Pension . Women could only claim until they reached the State Pension age; this increased gradually between 2010 and 2020. The State Pension age

5150-589: The Liberal Party the added benefit of combatting the Labour Party's increasing influence among the country's working-class population. The Act gave the British working classes a contributory system of insurance against illness and unemployment. It only applied to wage earners, however, and their families and the unwaged had to rely on other sources of support, if any. Key figures in the implementation of

5253-510: The Province of Quebec opted out of the federal EI scheme in respect of maternity, parental and adoption benefits, in order to provide more generous benefits for all workers in that province, including self-employed workers. Total EI spending was $ 19.677 billion for 2011–2012 (figures in Canadian dollars ). Employers contribute 1.4 times the amount of employee premiums. Since 1990, there

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5356-654: The Secretary of State had acted beyond the powers given to him by Parliament by failing to provide any detail about the various "Back to Work" schemes in the Regulations'. The Department for Work and Pensions appealed to the Supreme Court of the United Kingdom . Meanwhile, it also drafted new regulations to ensure the continuance of the work placements. During the period of the scheme which had been ruled unlawful, perhaps 300,000 people had had benefits of an average of around £530-70 withheld, totalling around £130m which

5459-676: The Social Security Agency. During October 2009 the New Deal programmes were replaced by the Flexible New Deal programmes, which were available to claimants still unemployed after a period of twelve months. Various work programmes, under the collective label of " New Deal " (including Flexible New Deal, New Deal for Young People, New Deal 25+, New Deal for Disabled people, New Deal for Lone parents, Pathways to Work, Progress2Work and Employment Zones), were replaced by The Work Programme during June 2011. On 6 March 2012

5562-485: The UK Government announced benefits changes for prisoners at the end of their sentence and those claiming JSA. They would be sent on the work programme, as would JSA claimants who had been claiming for the previous 26 weeks. On the work programme they were required to sign a form to agree to 30 hours a week of unpaid work or face sanctions of 6 months. Unlike New Deal there was no choice of training or help setting up

5665-503: The United Kingdom. The dole system provided 39 weeks of unemployment benefits to over 11 million workers—practically the entire civilian working population except domestic service, farmworkers, railroad men, and civil servants. Unemployment benefits were introduced in Germany in 1927, and in most European countries in the period after the Second World War with the expansion of the welfare state . Unemployment insurance in

5768-592: The United States originated in Wisconsin in 1932. Through the Social Security Act of 1935, the federal government of the United States effectively encouraged the individual states to adopt unemployment insurance plans. Eligibility criteria for unemployment benefits typically factor in the applicant's employment history and their reason for being unemployed. Once approved, there is sometimes

5871-596: The Western provinces but EI is especially important in the Atlantic provinces, which have higher rates of unemployment. Many Atlantic workers are also employed in seasonal work such as fishing, forestry or tourism and go on EI over the winter when there is no work. There are special rules for fishermen making it easier for them to collect EI. EI also pays for maternity and parental leave , compassionate care leave , and illness coverage. The program also pays for retraining programs (EI Part II) through labour market agreements with

5974-580: The adoption of the 1971 UI Act. At the same time, the federal government gradually reduced its financial contribution, eliminating it entirely by 1990. The EI system was again cut by the Progressive Conservatives in 1990 and 1993, then by the Liberals in 1994 and 1996. Amendments made it harder to qualify by increasing the time needed to be worked, although seasonal claimants (who work long hours over short periods) turned out to gain from

6077-539: The age of 21 and under the pension eligibility age. To receive a JobSeeker Payment, recipients must be unemployed, be prepared to enter into an Employment Pathway Plan (previously called an Activity Agreement) by which they agree to undertake certain activities to increase their opportunities for employment, be Australian Residents and satisfy the income test (which limits weekly income to A$ 32 per week before benefits begin to reduce, until one's income reaches A$ 397.42 per week at which point no unemployment benefits are paid) and

6180-489: The amount needed to cover the extra costs paid during a recession. This drew criticism from Opposition parties and from business and labour groups, and has remained a recurring issue of the public debate. The Conservative Party , chose not to recognize those EI surpluses after being elected in 2006 . Instead, the Conservative government cancelled the EI surpluses entirely in 2010, and required EI contributors to make up

6283-412: The applicant does not fulfil the search requirements, or turns down a job offer deemed acceptable by the unemployment benefits agency. Agencies may also provide resources, training, or education for job seekers. Some countries allow beneficiaries to accept part-time jobs without losing benefit eligibility, which can counter the disincentive of unemployment benefits to accepting jobs that do not fully replace

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6386-509: The assets test (an eligible recipient can have assets of up to A$ 161,500 if he or she owns a home before the allowance begins to reduce and $ 278,500 if he or she does do not own a home). The rate of allowance as of 12 January 2010 for single people without children was A$ 228 per week, paid fortnightly. (This does not include supplemental payments such as Rent Assistance or Energy Supplement. ) Different rates apply to people with partners and/or children. Effectively, people have had to survive on $ 39

6489-416: The claimants, especially to disabled claimants who are disproportionately targeted with sanctions. The charity Oxfam oppose what they consider unfair sanctions: We [Oxfam] have spoken to people who have had delays and sanctions for mundane reasons, such as not having the right ink to fill an application or missing appointments due to sickness which is unacceptable. Any sanctions system needs to operate in

6592-465: The country and the status of the person, those sums may be small, covering only basic needs, or may compensate the lost time proportionally to the previous earned salary. Unemployment benefits are generally given only to those registering as becoming unemployed through no fault of their own, and often on conditions ensuring that they seek work. In British English, unemployment benefits are also colloquially referred to as "the dole "; receiving benefits

6695-406: The former wages. Unemployment benefits are typically funded by payroll taxes on employers and employees. This can be supplemented by the government's general tax revenue, which can occur periodically or in response to economic downturn. Contribution rates are usually between 1 and 3% of gross earnings, and are usually split between the employer and employee. Across the world, 72 countries offer

6798-570: The grant altogether, virtually pushing them into poverty, homelessness and bankruptcy, as there are no other precautions installed. Germany does not have an EBT (electronic benefits transfer) card system in place and, instead, disburses welfare in cash or via direct deposit into the recipient's bank account. As of 2022 a single person without children receives at most €449 per month at free disposal intended to cover living expenses, plus costs for reasonable accommodation (rent and heating). People granted benefits are automatically insured at reduced rates in

6901-544: The individual does not qualify for any unemployment benefit he may still be eligible for the housing benefit ( asumistuki ) from Kela and municipal social welfare provisions ( toimeentulotuki ). They are not unemployment benefits and depend on household income, but they have in practice become the basic income of many long-term unemployed. France uses a quasi Ghent system , under which unemployment benefits are distributed by an independent agency (UNEDIC) in which unions and Employer organisations are equally represented. UNEDIC

7004-487: The job market in Germany. In contrast to type II unemployment benefits, there is no means test. However, it is necessary to remain unemployed while seeking employment. In this context unemployment is defined as working less than 15 hours a week. Type II unemployment benefits ( Arbeitslosengeld II , also referred to as Hartz IV or Bürgergeld colloquially) are an open-ended welfare program intended to ensure people do not fall into poverty. Despite its name, unemployment

7107-425: The labour market, or subsidising moving expenses once an employment contract has been signed but the place of work requires relocation as it is further than the acceptable daily commute duration (at most 3 hrs a day). If they do not voluntarily participate in training, they may be obliged by administrative action. Beneficiaries not complying with orders can be sanctioned by pruning their allowance and eventually revoking

7210-502: The last 12 months preceding unemployment with the average amount being €1,111 per month. In France, tax and other payroll taxes are paid on unemployment benefits. In 2011, claimants received the allowance for an average 291 days. Germany has a two-tiered system of unemployment benefits. Their common goal is to eventually cease dependence on unemployment benefits entirely. Both programs assist their beneficiaries to varying degrees through Type I unemployment benefits ( Arbeitslosengeld I )

7313-612: The law on Employment of the Population and Social Protection in Case of Unemployment, which provided a legal framework to the Unemployment Insurance and active labour policies. Armenia's UI is a contributory program, which is obligatory for public and formal private sectors, as well as the self-employed. To be eligible for benefits, the claimant must be unemployed as a result of business reorganization, staff reduction, or

7416-410: The maximum). The maximum amount of rent assistance payable is A$ 139.60 per fortnight, and is paid when the total weekly rent exceeds A$ 310.73 per fortnight. Different rates apply to people with partners and/or children, or who are sharing accommodation. In Canada , the system is known as "Employment Insurance" (EI, French : Prestations d’assurance-emploi ). Formerly called "Unemployment Insurance",

7519-542: The monthly unemployment benefit will get a payment of 18,000 AMD per month for a minimum of 6 months and a maximum of 12 months. The UI also includes a scheme to help employers hire people who are unemployed with at least 35 years of UI contributions but have not reached retirement age; unemployed for more than three years; returning from corrective or medical institutions; returning from mandatory military service; disabled; refugees; or are 16 years of age and newly eligible to work. Employers who hire these groups are eligible for

7622-489: The name was changed in 1996. In 2024, Canadian workers paid premiums of 1.66% of insured earnings in return for benefits if they lose their jobs. The Employment and Social Insurance Act was passed in 1935 during the Great Depression by the government of R. B. Bennett as an attempted Canadian unemployment insurance program. It was, however, ruled unconstitutional by the Supreme Court of Canada as unemployment

7725-456: The national government. Unionization rates are high (70%), and union membership comes with membership in an unemployment fund. Additionally, there are non-union unemployment funds. Usually, benefits require 26 weeks of 18 hours per week on average, and the unemployment benefit is 60% of the salary and lasts for 500 days. When this is not available, Kela can pay either regular unemployment benefit or labour market subsidy benefits. The former requires

7828-436: The national health and nursing care insurances. The national pension insurance accounts the time living on benefits, but it does not increase the pension entitlement since in 2011 the federal government stopped paying €205 monthly. Type II unemployment benefits have been heavily criticized since their introduction. As Type II benefits are meant to ensure a minimum subsistence level, the mechanism of sanctions has repeatedly been

7931-413: The number of hours of contact time). Starting in 2001, the New Deal introduced a second stage to the claim period. Initially, there was the jobseeker's agreement and allowance. If a claimant who was below the female state pension was unemployed for over twelve months, they were placed on the New Deal scheme. They may also have entered the New Deal process early if they fell in special categories. From 2009,

8034-546: The replacement, in 1996, of weeks by hours to qualify. The ratio of beneficiaries to unemployed, after having stood at around 40% for many years, rose somewhat during the 2009 recession but then fell back again to the low 40s. Some unemployed persons are not covered for benefits (e.g. self-employed workers), while others may have exhausted their benefits, did not work long enough to qualify, or quit or were dismissed from their job. The length of time one could take EI has also been cut repeatedly. The 1994 and 1996 changes contributed to

8137-509: The salary paid to the employee. The contribution level was reduced from 3.25% for employees and employers as part of labour market reforms known as Hartz. Contributions are paid only on earnings up to the social security ceiling (2012: 5,600 EUR). Furthermore, the system is supported by funds from the federal budget. Claimants get 60% of their previous net salary (capped at the social security ceiling), or 67% for claimants with children (as long as beneficiary of child benefit ). The maximum benefit

8240-524: The same issues and the Jobseekers (Back to Work Schemes) Act amended the regulatory foundation of the scheme, it was not directly affected by the outcome of the Appeal Court ruling. The law firm acting for Reilly and Wilson, Public Interest Lawyers, reportedly lodged submissions to the supreme court, arguing that 'the actions of the secretary of state … represent a clear violation of article 6 of

8343-419: The same nominal amount since the 1980s and was never uprated with inflation, unlike benefits themselves. The benefit was withdrawn from those working 16 or more hours a week (though this did not apply to voluntary work). Part-time students could claim provided they did not have more than 16 hours a week in teacher contact time and the course was not officially designated as full-time by the college (irrespective of

8446-399: The same period. The Department for Work and Pensions denied persecuting vulnerable people. According to the UK government webpage on how to apply, application can be made online or by phone. Application can also be made on paper forms; JSA1, or JSA4RR if reclaiming JSA. When claimants attended their first 'Jobseeker Interview', they were required to sign a contract with their advisor, called

8549-758: The stress sanctions cause can worsen mental health . Paul Jenkins, chief executive of the Tavistock and Portman NHS Foundation Trust , who previously worked for Rethink Mental Illness , criticised the reintroduction of sanctions, which were suspended in March 2020 because of the COVID-19 pandemic in the United Kingdom . He said benefit sanctions policy was "really cruel and ineffective". According to Patrick Wintour in The Guardian , job centre staff were threatened they would be disciplined and given targets because it

8652-401: The system. It is financed by contributions from employees and employers. This is in stark contrast to FUTA in the US and other systems, where only employers make contributions. Participation (and thus contributions) are generally mandatory for both employees and employers. Employees pay 1.5% of their gross salary below the social security threshold and employers pay 1.5% contribution on top of

8755-511: The tasks they are often unfairly set, or even help them understand what sanctions are. Instead, people with a learning disability have been sanctioned again and again for not completing tasks which they simply were not able due to their learning disability. Unemployment benefits Unemployment benefits , also called unemployment insurance , unemployment payment , unemployment compensation , or simply unemployment , are payments made by governmental bodies to unemployed people. Depending on

8858-640: The taxation system. There is no compulsory national unemployment insurance fund. Rather, benefits are funded in the annual Federal Budget by the National Treasury and are administrated and distributed throughout the nation by the government agency, Centrelink . Benefit rates are indexed to the Consumer Price Index and are adjusted twice a year according to inflation or deflation. There are two types of payment available to those experiencing unemployment. The first, called Youth Allowance ,

8961-460: The termination of a collective bargaining agreement. To be eligible, applicants must have contributed for at least 12 months prior to unemployment or be actively looking for work after a long period of unemployment. The UI is also available to first-time job seekers. Those who do not qualify for the monthly payment are nonetheless eligible for the UI scheme's capacity building programs. Those who qualify for

9064-458: The total number of claimants for JSA were persons having been convicted of a crime resulting in their act(s) having been recorded by the police authorities. In The Guardian newspaper in March 2001, the success of the New Deal scheme was reported; the report stated that 270,000 people were found full-time employment and the cost of achieving this end was half of the estimated amount. According to

9167-514: The unemployed person receives assistance from the Työ- ja elinkeinokeskus ( TE-keskus , or the "Work and Livelihood Centre"), a government agency which helps people to find jobs and employers to find workers. In order to be considered unemployed, the seeker must register at the TE-keskus as unemployed. If the jobseeker does not have degree, the agency can require the job seeker to apply to a school. If

9270-431: The women's State Pension age had two options. They could still claim Jobseeker's Allowance, but had to remain actively seeking work. They would continue to receive the contribution-based rate of JSA if they were claiming it. Alternatively, a man on a low income could apply for Pension Credit on reaching the women's state pension age. This replaced Jobseeker's Allowance payments and he would no longer need to "sign on" at

9373-506: Was apparently unable to afford to keep his insulin properly refrigerated was found dead, leading to a parliamentary select committee investigation of sanctions. In the last quarter of 2013 there were 227,629 claimants sanctioned, a rise of 69,600 compared to the equivalent time in 2012. Over a million British claimants were sanctioned between October 2012 and December 2013. 633,000 got their benefits back after referral and 580,273 referrals were cancelled. Even when benefits are restored on appeal

9476-465: Was considered. The governmental bodies had a look at the ideas and felt they were not altogether correct. So the government only accepted the need for two-thirds of the total of changes suggested. In 2011 the Jobseeker's Allowance (Employment, Skills and Enterprise) Regulations were brought into force. One part of the scheme required the long-term unemployed to participate in unpaid work activity for

9579-567: Was expected would be subject to mandatory work activity were those who had been 'signing on' for at least thirteen weeks. Despite this any recipient of Jobseeker-benefit could be required to take part in work activity regardless of how long that person had been 'signing on'. At some time the Social Security Advisory Committee felt a need for an initiative so the Employment Skills and Regulations Scheme

9682-474: Was extended dramatically by Pierre Trudeau in 1971 making it much easier to get. The system was sometimes called the 10/42, because one had to work for 10 weeks to get benefits for the other 42 weeks of the year. It was also in 1971 that the UI program was first opened up to maternity and sickness benefits, for 15 weeks in each case. The generosity of the Canadian UI program was progressively reduced after

9785-507: Was felt too few claimants were sanctioned. Statistics are kept about the proportion of claimants sanctioned at each job centre and those with relatively low proportions of claimants sanctioned can face questions. There was reportedly a 'climate of fear' at job centres with staff under pressure to sanction innocent people to meet targets. Sanctions also harm the children of sanctioned claimants. Sanctioned claimants and their families sometimes need food banks to get something to eat. The government

9888-562: Was introduced to streamline the systematic administration of benefits by improving claimant compliance and to partially remove the distinction between means-tested claimants and those claiming against contribution records. in April 2011 Iain Duncan Smith introduced a period of mandatory work activity amounting to a maximum of four weeks of thirty hours each week in employment. It was expected this activity would be required of approximately 10,000 individuals. The main claimants who it

9991-514: Was judged to be an insurance matter falling under provincial responsibility. After a constitutional amendment was agreed to by all of the provinces, a reference to "Unemployment Insurance" was added to the matters falling under federal authority under the Constitution Act, 1867 , and the first Canadian system was adopted in 1940. Because of these problems Canada was the last major Western country to bring in an employment insurance system. It

10094-483: Was no entitlement to Universal Credit, a person could re-qualify for JSA(C) in a subsequent benefit year based on contributions paid in the relevant contribution years, providing that there had been a break of at least twelve weeks. They had to wait until the beginning of a new benefit year before they could claim again. People who were eligible for JSA(C) could also claim JSA(IB) for any additional payments due under that benefit (for family dependents, for example). JSA(IB)

10197-722: Was passed through the House of Commons entitled the Jobseekers Act 1995. The Jobseeker's Allowance Regulations 1996 were produced within a period of six months from the act coming into force, with the change of Income Support provision to Jobseekers Allowance occurring on 7 October 1996. Previously, on 11 September 1996, the Social Security (Credits and Contributions) (Jobseeker's Allowance Consequential and Miscellaneous Amendments) Regulations 1996 were created, brought before parliament five days later and subsequently made policy coming into force also on 7 October. The change

10300-478: Was payable only if the claimant had less than £16,000 in capital (correct as of May 2022). Payments are reduced if the claimant has savings between £6,000 and £16,000. Both forms of benefit faced 100% marginal deductions if the individual earned more than a small amount – the 'disregard' – which was £5 per week for single people, £10 per week for couples and £20 per week for certain other groups such as some lone parents and disabled people. The 'disregard' remained at

10403-439: Was restricted to particular industries, particularly more volatile ones like shipbuilding, and did not make provision for any dependants. After one week of unemployment, a worker was eligible to receive seven shillings per week for up to 15 weeks in a year. By 1913, 2.3 million were insured under the unemployment benefit program. The Unemployment Insurance Act 1920 created the dole system of payments for unemployed workers in

10506-464: Was seven shillings a week (equivalent to £45 in 2023). These payments were thus made only to people who had recently been in work, and not simply to those on low incomes. Furthermore, benefits were only paid for up to twelve months, by which time a claimant had to have regained work. The Unemployment Insurance Act of March 1921 introduced a 'seeking work' test which required claimants to be actively seeking work and willing to accept employment paying

10609-406: Was urged to review the effects of sanctions in particular on claimants with psychiatric problems and disabilities . People with learning difficulties frequently have trouble understanding what is required of them. James Bolton of Mencap said: Learning disability is often misunderstood or ignored by advisors and, as a result, essential simple adjustments aren't made to help individuals complete

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