Jobseeker’s Allowance was designed by the Department for Work and Pensions (DWP) to offer a financial helping hand to those currently unemployed and looking to get into work. To be eligible to receive the so-called ‘new style’ of JSA, Britons will need to have worked as an employee and paid Class 1 National Insurance contributions in the last two to three years. However, this form of support is only available for a six-month time period under current rules.
As such, this means many people who made their first claim during the height of the crisis will be coming to the end of their arrangement.
Many people who have not managed to find employment within this time period will therefore have to consider alternative options.
Universal Credit, offered to those on a low income or out of work, could be a suitable alternative.
The Resolution Foundation, a think tank, has said there has been an increase of JSA cases by 164,000 since March.
He said: “When the crisis has passed, there is a very good case for reviewing the balance between contributory and means-tested benefits.
“Making a fundamental change will take years, but the government should consider bridging the gap between what was a generous furlough scheme and what is a very limited form of unemployment insurance provided by JSA.
“Such a system could provide a more flexible welfare system that would enable more targeted economic support for families during a future recession, and provide higher income replacement rates for those who lose their jobs.”
Mr Handscombe also called upon the government to make changes to Universal Credit to help those coming off JSA to provide further support.
Those up to the age of 24 can receive up to £58.90 per week.
Individuals who are 25 or over are allocated up to £74.35 weekly.
And finally, couples where both are over the age of 18 will get up to £116.80 from JSA.
Express.co.uk has contacted the Department for Work and Pensions for comment.