Out of work


If you are made redundant your redundancy payment won’t be treated as income when working out which benefits you can get. It will be treated as savings also known as capital. This means that the amount of your redundancy payment will be added to any other savings you already have.

If you have savings of more than £6,000, it will affect how much Universal Credit you can get. If you get pay in lieu of notice or holiday pay, this will affect how much Universal Credit you can get. If you have savings of over £16,000, you won’t be able to get Universal Credit. It won’t affect how much New Style Jobseeker’s Allowance (JSA) you can get. The best way to check how this will affect you is to use look in the information on a Benefits Calculator.

Jobseeker's Allowance

Jobseeker’s Allowance is a benefit for people who are not in full-time employment (work less than 16 hours per week), can work and are looking for work. Type of benefit:

Income-based Jobseeker’s Allowance is means tested – this has been replaced by Universal Credit.

New-style Jobseeker’s Allowance is non means tested and is calculated using your national insurance contributions. If you qualify, you can get New Style Job Seekers Allowance for up to 182 days. After this your work coach will talk to you about your options.

Your savings and capital (or your partner’s savings, capital and income) are not taken into account when claiming New Style JSA. However, your earnings and any payment you are getting from a pension can affect the amount you may receive. While you receive New Style JSA you’ll be awarded Class 1 National Insurance credits, which can help towards your State Pension and other contributory benefits in the future. If you qualify for both New Style JSA and Universal Credit, any New Style JSA you receive will be taken into account as income for Universal Credit.

Find out more information on new-style Jobseeker's Allowance.

Universal Credit

You may be entitled to Universal Credit. For more information please check our Low income section.

Jobcentre Plus Travel Discount Card

When you’ve been claiming certain benefits (including Jobseeker’s Allowance or Universal Credit) because you are out of work and looking for a job, after 3 months, you’re entitled to a Jobcentre Plus Travel Discount Card. You can get half-price rail tickets and discounts on selected bus services for six months (18-24-year-olds) or nine months (over 25s). You can apply for a Jobcentre Plus Travel Discount Card at your local Jobcentre Plus.

Flexible Support

You might be able to use the Flexible Support Fund to help with the cost of travelling to interviews and training or with extra costs you might have in the first months of starting a new job. You can also apply to pay for upfront costs if you need to secure a childcare place. You can apply to the Flexible Support Fund at your local Jobcentre Plus.

You can check what you might be entitled to by using a benefits calculator or contact our Services Team who are trained to help people access the state benefits they are entitled to. Simply fill in the Services Contact Form or you can call us on 0800 0093 8543 and and one of the team will be in touch.  

All advice is free and fully confidential.

The helpline is open 9am – 4.30pm Monday, Tuesday, Thursday and Friday. Open 10am – 4.30pm on Wednesday. Excludes bank holidays.