Unemployment Insurance Benefit
The Labour government is planning to introduce a single, time-limited unemployment insurance (UI) benefit to replace the current contributory benefits: New Style Jobseeker's Allowance (NS JSA) and New Style Employment and Support Allowance (NS ESA).
I was wondering does anyone know how this new benefit will affect existing claimants on ESA (CB) and who are in the support group?
Comments
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Thanks for replying Chris. I knew it was being talked about in the Green Paper.
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The Autumn Budget will be announced on 26th November. We won't have any information until then but we will update the community when we can.
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Just so you're aware, they are only consulting on this and the announcement will be made 26th November.
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Thanks for your reply @Rachel_Scope
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You may be correct. I have been told that full details will be announced 26th November.
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I'm going to have a read through the link you provided. Thanks for that. When is this new benefit going to start and what impact will it have on existing claimants?
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Once it goes ahead, it will be challenged in court for many reasons. This link provides one:
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I seem to remember DPAC writing something about legal challenges to the proposed unemployment insurance for other reasons. If I find it I’ll post it here.
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I wonder if someone from scope could bring up again the latest threat regarding the Green paper. Seems to be deleted and there was some interesting info there
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Hi @alexroda I'm not sure what thread you mean. Do you know when it was posted?
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it was the very long post about the green paper, I think it had different versions as admin kept creating a new one once it had 100 Pages. I’m interested in the latest one and I can’t find it
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I'll ask the team in the morning as I'm not sure.
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found it
I think somewhere in there there’s an article about possible future challenges to the proposed unemployment insurance
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one of the legal challenges would be the withdrawal agreement
If someone from the uk on receipt of ESACB moves to the EU, they are entitled to receive the benefit for five years.
Likewise, if a British national from Germany moves to the UK the German government must pay any disability or sickness for five years a s per the withdrawal agreement.
So if this new unemployment insurance overrides that agreement then I’m guessing that it could face legal challenges. Especially if you are a EU member in the UK planning on moving back to the EU.
There are other reasons I just can’t remember them now
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That's interesting to know @alexroda. I was also just looking through the Green Paper and saw this
54. Alongside levelling up the rate, this change would end the indefinite entitlement to contributory ESA for those assessed as having limited capability for work-related activity (for new people claiming). Those unemployed after the time-limited period would be able to claim UC, depending on their personal circumstances. We believe this reform would align with the removal of the WCA, by offering a route to financial support for those with temporary and short-term health conditions, including for those who may not be entitled to PIP and therefore not entitled to the health element of UC.
I'm wondering if this new Employment Insurance Benefit will affect existing claimants who are on ESA. I suppose we'll find out soon enough.
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This is going to get interesting. None of this has been thought through.
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this article is interesting, see point 4 where it goes a little be in depth of the new unemployment insurance which was proposed in the green paper. Seems to say that it will affect only new claimants:
https://lurgeelife.wordpress.com/2025/08/17/the-5-remaining-pathways-to-work-proposals-the-2025-autumn-white-paper-whats-the-likely-impact/1 -
I think this doesn’t apply to a contributory benefit as ESACB
All countries have a five year rule for contributory benefits except pension which is for life
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