Contribution-based
The payment of those outside of employment an allowance of money, is a type of social insurance.
Contribution-based Jobseeker's Allowance (JSA(C)) entitlement is based on Class 1 National Insurance contributions in the two complete tax years preceding the calendar year of claim. This allowance is paid regardless of assets; however, whilst this statement applies to "savings, capital or a partner's earnings", there are other caveats which exclude payment. For instance,any personal or occupational pension over £50 a week result in deductions. Thus many older citizens seeking work are excluded, despite qualifying through NI contributions payments, because they have pension income.
Certain other benefits including statutory sick pay, statutory paternity pay, statutory maternity pay, statutory adoption pay, Employment and Support Allowance, bereavement benefit, carer's allowance and JSA(C) itself also count towards Class 1 contributions and are called "Credited Class 1 contributions".
Self-employed people do not pay Class 1 contributions, and thus may not claim JSA(C).
JSA(C) may be claimed for only 26 weeks before having to move onto JSA(IB), if eligible (see below).
Read more about this topic: Jobseeker's Allowance