Benefits you can claim if you lose your job: universal credit, jobseeker's allowance, and more explained
From universal credit to jobseeker's allowance, here are all the benefits you can claim if you lose your job
Oscar DayusDigital journalist
Sign up to FREE email alerts from the Money Saving Club
The coronavirus pandemic has been rough for us all, for so many reasons. But there are more than a million people who have lost their jobs over the course of the crisis, and as furlough begins to taper off, more will likely follow.
The furlough scheme was introduced in the spring of 2020 as a way of reducing the cost to businesses of keeping staff employed, thereby discouraging them from laying people off.
The scheme has likely saved millions of jobs: 11.6 million jobs have been supported by the programme altogether, though not all of these would have lost their jobs.
READ MORE: Self-employed universal credit claimants face huge cut from next month
Workers were paid 80% of their usual wage (up to a maximum of £2500 per month) by the state, though employers could top up the remaining 20% if they wished.
From July 2021, however, employers were required to begin contributing to the cost of their furloughed employees again.
This was initially set at a 10% contribution, but from the start of August it rises to a 20% contribution. Employers are already needing to pay national insurance and pension contributions for their furloughed staff, too.
This is designed both to begin saving the government money after spending somewhere in the region of £66 billion on the furlough scheme, but also to encourage employers to bring their furloughed staff back to work full-time.
Of course, not every employer's business is yet back to normal, and some may never recover their lost income from the pandemic, so more job losses are sadly almost inevitable over the coming months.
With that in mind, we thought it would be a good time to look at potential benefits you can claim if you were to lose your job.
Universal credit is the biggie, the main tool in the Department of Work and Pensions' crown. Anyone who is of working age but on a low income (including those out of work) may be eligible. It's means-tested, as your income and savings - as well as living and family circumstances - can affect how much you'll get per month.
At present, the standard rate for universal credit is £411.51, but this can vary quite a bit.
Although universal credit is a simpler and more convenient one-stop-shop for many legacy benefits, it does have its downsides: it can take five weeks or longer to get your first payment, so make sure you get your application in as early as possible. If you're in dire need of money immediately, you can apply for an advance on your first payment, though this will have to be paid back over time.
You may be required, as a condition of receiving universal credit, to do certain things. You might need to prove you're applying for jobs, completing training courses, or paying your rent on time. These depend on your personal circumstances and are agreed with your work coach.
Find out more and apply for universal credit on gov.uk.
How to save money on your home
It is always worth checking you are getting the best deal from your energy and TV suppliers, every saving can make a difference.
Save on your energy bills - Sometimes it takes minutes to make a difference to your bill. LookAfterMyBills is a free service which automatically switches you to the cheapest energy company, and you could save up to £290. You can also use MoneySupermarket to compare different switching services.
Cut your TV costs - Sky normally offers discounts and deals when you renew or change your contract and could cut your bills without you missing out on your favourite shows. Virgin customers can do the same and often combine broadband and mobile costs too.
Switch it up - Uswitch is a quick option for hassle-free switching and saving to different tariffs, you can find exclusive offers and it takes minutes. You could save more than £200 over the course of a year.
This article contains affiliate links, we may receive a commission on any sales we generate.
Jobseeker's allowance (JSA)
New style jobseeker's allowance replaces the legacy versions, contribution- and income-based JSA, which have effectively been replaced by universal credit. New style JSA, in contrast to those benefits, is not means-tested, meaning anyone who is out of work and education and is looking for work can apply, no matter how much money they own. You can also apply if you're working less than 16 hours per week.
New style JSA pays £59.20 per week for people aged 24 and under; for those aged 25 and above it's £74.70 per week. Payments are usually made every two weeks. You can only claim JSA for up to 182 days (about six months), and you'll need to be able to prove you're applying for jobs or you'll be cut off sooner.
Find out more and apply for jobseeker's allowance on gov.uk.
Employment and support allowance (ESA)
Employment and support allowance is designed for people who have a disability or health condition that affects how much they can work. It helps such people with their living costs if they can't work, and helps them get back into work if they can.
You can apply whether you're employed, self-employed, or unemployed.
ESA claims can take 13 or more weeks to be assessed. In this time you'll be paid an assessment rate of up to £59.20 (if you're under 25) or £74.70 (if you're 25 or over) per week.
Once you've been assessed, you'll get up to £74.70 per week if the assessors believe you might be able to get in to work in the future. Otherwise, you'll get up to £114.10 per week.
Find out more and apply for employment and support allowance on gov.uk.
These are just the main three benefits the DWP offers to people who are out of work; see the full list on the government's website.
Want our best stories with fewer ads and alerts when the biggest news stories drop? Download our app on iPhone or Android
DWP: Self-employed Universal Credit claimants face benefit cut on Sunday
Universal credit will pay 'barely half' of 'acceptable' standard weekly income of £482 a week