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In principle, no problem if she has a child under 16. No benefit penalty for leaving your job in IS. She'll have to have the compulsory interview while Jobcentre Plus bends her ear about the benefits of working, re-training, etc, but the final decision is hers. IS will then, of course, bring passported HB & CTB in due course.
No child under 16? Much more awkward, as IS is likely to be refused unless she has certificated health problems, etc. JSA would then also want to refuse benefit due to jacking her job in. She'd have to show this was justified due to her circumstances and also that she is available for and seeking other work (which it sounds like she isn't). If she is accepted as a jobseeker but with sanctions applying, she has to argue for the minimum length sanction period that can be applied, bearing in mind her circumstances, plus hardship payments (if appropriate) while the sanctions apply.
Note that total refusal of JSA (including hardship payments) doesn't debar her from HB & CTB - no sanctions in those benefits. Some LAs have in the past tried to refuse such claimants on the grounds of 'no visible means of support - must be a fiddle somewhere.' This is not legitimate decision making.
Jim
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