Claiming New Style JSA whilst on Tax Credits

Hi all,

Client and his partner currently claim TCs for two children. They have more than 16k savings. Client has stopped work and is seeking advice re. claiming “new-style” JSA.

My initial feeling was that there would not be any problem with this. But I have had a look at the CPAG handbook and am slightly worried by what is on page 23. In the section about CBJSA/CBESA the handbook states:

“If you make a new claim for JSA or ESA and you live in a UC full service area you come under the UC system…when paid under the UC system, the DWP refers to CBJSA as ‘new style’ JSA….If you come under the UC system, you must claim UC if you need to ‘top up’ your contribution-based JSA”

So what I am worried about is that if client claims “new-style” JSA this will bring him under the UC system and stop the Tax Credit claim, which then cannot be replaced by UC as client is over the capital limits.

Or are the Tax Credits only stopped by a claim for UC itself, which is different to ‘coming under the UC system’?

I’m thinking I am probably overthinking things and that it is the latter, but would appreciate a second opinion to put my mind at rest a bit :/ .

Thanks!

Claiming new-style JSA won’t stop the tax credits claim - what CPAG book is referring to I think is that he cannot claim income-based JSA as it doesn’t exist in new-style JSA. The only thing that will move them to UC is if they would have had to put in a new claim for a legacy benefit (eg HB) which they will no longer be able to do, but it doesn’t bring current ones to an end.

Page references and link below if these are of further assistance

See CPAG WB&TC; 2018/19 page 645 &

https;://www.gov.uk/guidance/new-style-employment-and-support-allowance

See CPAG WB&TC; 2018/19 page 703 &

https;://www.gov.uk/guidance/new-style-jobseekers-allowance

Thanks both for your replies! Reassuring!

S