Recession impact on out-of-work benefits
Key points
- Most people receiving out-of-work benefits in London are not receiving Job Seeker's Allowance (JSA).
- Nearly 100,000 more people in London claim some form of incapacity or disability-related benefit than claim JSA.
- Since 2007, the total number of people claiming out-of-work benefits has risen by around 60,000. Most of this has been in JSA.
Working-age adults receiving out-of-work benefits in London
What does this graph show?
At the end of 2009 around 735,000 working-age adults in London claimed some out-of-work benefit. The single largest group among these are people claiming for reasons of incapacity or illness (either Incapacity Benefit, Income Support or Employment Support Allowance).
The total figure is up by around 60,000 compared to 2007. Nearly all of this increase has been in JSA, with some small rises in incapacity and carers' benefit numbers.
The number of people claiming JSA has risen by just over 80,000 (around 60%) to 214,000. Some of this increase is as a result of changing rules regarding lone parents. In 2008, lone parents whose children were younger than 12 were moved to JSA. In 2009, this age was further lowered to 10, with a further change to age 7 planned for October 2010. In the graph above, the number of lone parent IS claimants fell by 26,000 between 2007 and 2009. However, this is only one-third of the total increase in JSA.
Find out more about people claiming Job Seeker's Allowance.
Data used
DWP Longitudinal Study, 2007 and 2009
See glossary below right for more detail on benefits. Further information is available from Welfare benefits and tax credits handbook, published by the Child Poverty Action Group
Indicator last updated: 8 October 2010
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Other indicators in Lone parents
Other indicators in Working-age adults
- Poverty in Inner and Outer London
- Working-age out-of-work benefits by region
- Working age out-of-work benefits within London
- Income inequality in London compared with other English regions
- Income inequalities within London boroughs
- Pay inequalities within London
- Working-age adults lacking work over time
- Working-age adults lacking work by borough
- Adult ill health
- Adult ill-health by borough
- Low-paid residents by borough
- Low-paid jobs by borough
- Low income and ethnicity in London
- Lacking work by ethnicity
- Not working by country of birth
- Not working by ethnicity and country of birth
- Low pay by ethnicity
- Premature death by borough
- Low-paid residents by region
- Low-paid jobs by sub-region
- Families receiving in-work benefits
- Working age out-of-work benefits by borough
- Unemployment rates over time
- Unemployment numbers by sub-region
- Unemployment by ethnicity, country of birth and gender
- Unemployment in London by age
- Part-time work
- Job Seeker's Allowance by region
- Job Seeker's Allowance by borough
- Child, adult and pensioner poverty
- London's low income population
- Child and adult poverty and work
- Young adult unemployment over time
View all indicators
Glossary
Employment and Support Allowance:
Employment and Support Allowance (ESA) is replacing Incapacity Benefit (IB) for out-of-work adults with disabilities or who are ill. There are two rates of ESA, one for those assessed as able to work and one for those not able to work, the former rate being higher than the JSA rate. Neither is above the poverty threshold. There is a contribution- based version of ESA. Unlike JSA, it is not time limited.
Income Support:
Income Support (IS) is means-tested benefit paid to out-of-work adults including lone parents of young children and people with caring responsibilities. It is below the poverty threshold.
Job Seeker's Allowance:
Job seeker's allowance (JSA) is paid to those out-of-work but actively seeking it. There is both an income-based and contribution-based version of this benefit. The contribution- based version is limited to six months, after which a claimant may receive the income-based benefit, or no benefit at all, depending on their family income. In 2009, the basic rate of JSA was £64.30 per week for a single adult and £100.95 for a couple. 'Receiving JSA' is not the same as 'unemployment', which is measured via a household survey.
Incapacity Benefit:
Given to people who cannot work because of illness or disability. It is paid if Statutory Sick Pay (SSP) has ended or the individual cannot get SSP. Claimants must have paid NI contributions and been incapable of work because of sickness or disability for at least 4 days in a row including weekends and public holidays.
Since October 2008 new claimants have received an Employment and Support Allowance. This allowance will eventually replace Incapacity Benefit
(Taken from DWP website)