Work and Pensions Secretary Pat McFadden is working on a new bill which includes plans to introduce a new ‘unemployment insurance’ scheme providing higher payments
Workers who have recently lost their jobs will be paid higher benefits than the long-term unemployed in a reported Labour Government welfare overhaul.
Department of Work and Pensions Secretary Pat McFadden is drafting a bill to pay bigger, short-term payments to those who contributed to National Insurance before entering unemployment.
The plan is to help the newly out of work back into a job quicker while simultaneously cutting the welfare bill. An “unemployment insurance” scheme will be introduced, which pays approximately £140 a week for up to a year.
Applicants who did not contribute to National Insurance will stay on lower support from means-tested Universal Credit. The enhanced payments will be available for six to 12 months before claimants will be dropped to standard benefits.
A Department for Work and Pensions spokesman told The Sun: “We consulted on reforming the contributory benefit system to better support those who have made National Insurance contributions.
“Our plan is to create a single new Unemployment Insurance to replace both New Style Jobseeker’s Allowance and Employment & Support Allowance.
“The new Unemployment Insurance would make the contributory system simpler and more pro-work by providing a stronger, time-limited level of financial support for people who lose their job.
“We’re now considering responses to the consultation as we develop our proposals, and we will set out more details in due course.”
It comes as State pensioners and other benefit claimants may be in line for an extra tax-free payment from the Department for Work and Pensions (DWP) before the year is out. Those who are eligible will typically get this bonus automatically, but you may want to check your eligibility for the one-off payment.
The extra £10 payment, known as the Christmas Bonus, is usually awarded to those who are claiming specific benefits during the first week of December, referred to as the ‘qualifying week’. The bonus typically lands in bank accounts before December 25, providing claimants with additional funds for the festive season.
This year, anyone receiving 24 benefits may be entitled to the Christmas Bonus. Claimants must be either present or ‘ordinally resident’ in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week.
The DWP explains that if you are in a married couple, civil partnership, or cohabiting with a partner and both receive a qualifying benefit, each person will get a Christmas Bonus. However, even if your partner or civil partner does not qualify for benefits, they might still be eligible for a Christmas Bonus.
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