While most previously claimed benefits remain unaffected when someone resigns from a job, through this article, we will discuss the details of additional benefits that an individual may claim once they leave their job, the situations that may be classified as sound reasons for leaving a job and what will be the impact of their low income on their financial future.

What Benefits Can I Claim If I Resign From My Job In The UK?

If you resign from your job on professional terms and are able to provide evidence for having sound reasons for leaving your workplace, you may be able to claim the following benefits:

  • New Style Jobseeker’s Allowance
  • New Style Employment and Support Allowance
  • Universal Credit
  • Pension Credit

However, there are certain conditions that will apply for each benefit to be claimed. For instance, in the case of JSA, you should be under State Pension age, unemployed or working for less than 16 hours per week. Additionally, you should have made sufficient National Insurance contributions over the recent 2 to 3 years.

In the case of New Style Employment and Support Allowance, all of the above conditions will remain applicable; additionally, the claimant must be able to provide proof of a disability or health condition that has an impact on the number of hours that they are able to work. 

In order to claim Universal Credit, you or your partner are required to be under State Pension age and have saving equal to less than £16,000.

For Pension Credit, both you and your partner should have reached State Pension age. Otherwise one of you should be claiming Housing Benefit for people above the State Pension age.

In addition to benefits claim, you may also be eligible for an income tax refund after your resignation and until you are able to find another job.

If you were claiming any other benefits than the ones listed above prior to your resignation, you may be able to continue claiming them as long as you are able to provide evidence of sound reason(s) for leaving your job. This may include any of the following reasons:

  • You have opted for Voluntary Redundancy 
  • Your pay was below the National Minimum Wage 
  • The working conditions failed to health and safety standards
  • You were being bullied or harassed at work
  • You had to work under a zero-hour contract

If you are unable to prove that your resignation was due to any of the above reasons, you may face a sanction on your benefits claim. This means that you will not be receiving any amount in benefits for a period of three months.

During this time, the DWP may provide you with a hardship payment. However, this will lead to lower payments for Universal Credit once your sanction period is over.

Who Is Eligible For Job Seekers’ Allowance?

Those seeking job seekers allowance must be able to fulfil the following criteria:

  • aged 18 years or above
  • under state pension age
  • currently unemployed or working for less than 16 hours per week
  • previously held a job
  • available for and looking for work
  • have employment rights in the UK
  • previously paid National Insurance (in the recent 2 to 3 years)
  • currently not in full-time education
  • do not have an illness or disability that prevents being employed
  • live in England, Scotland or Wales

Should the above criteria be fulfilled, candidates will be able to claim JSA for 6 months; after which they will be advised by their work coach with regard to employment options.

It must be noted that the claimant’s or their partner’s savings do not disqualify them from receiving JSA.

What Changes Need To Be Reported For Benefits Claim?

Claimants need to inform the local council authorities in case of any of the below listed circumstantial changes to their conditions as they will bear a direct impact on their benefits claim:

  • one’s name or gender
  • finding a new job or ending a previous one
  • different working hours
  • increase or decrease in income
  • an increase or decrease in pension, savings, investments or property
  • salary arrears (this applies to you and your partner)
  • beginning or ending an educational degree, training or apprenticeship
  • home address
  • extended stay out of the UK
  • number of people in the household 
  • marital status
  • physical and mental health conditions
  • extended hospital stay or moving into a care home
  • starting or stopping caring for someone
  • change of medical adviser 
  • increase or decrease in benefits you or anyone else in your household receives
  • your immigration status (in case you are not a British citizen)

What Is Classed As Low Income?

Households in the UK are classified as being on low income if they live on less than 60 per cent of the median net disposable income earned. As per recent data gathered and analysed by the Department for Work and Pensions People in low-income households – GOV.UK a household with a couple having no children would be considered to be in low income if their annual household income is less than £17,100 BHC (before housing costs) and £14,800 AHC (after housing costs). 

According to a DWP report titled Households below average income: an analysis of the income distribution FYE 1995 to FYE 2020 median income for the term 2019-2020 has been taken as £547 per week. This value serves as the basis for measurement of which income bands fall within the median range and which exceed it. 60 per cent of the median income mark falls at £328 during the last fiscal. This means that any household with a combined income of less than £328 is considered to be on low income.

Can I Get Council Tax Reduction On Low Income?

Yes, you can get a council tax reduction on your bill if you are on low income. If an individual is earning 60 per cent below the median income threshold, they become eligible for a council tax reduction on their bill. However, they must contact their local council office to apply for council tax reduction and share relevant details regarding their income and circumstances. The council will then proceed with their application to decide the percentage of discount that will be applicable. 

You may be low on income but if you jointly hold capital with someone, you will be considered as half owner of it. For instance, if someone has joint ownership of an asset or they share joint savings account with someone (other than their partner), they will be considered as half owner of the total amount of saving in that account.

How Many People Are Claiming Out of Work Benefits In The UK?

The covid-19 pandemic brought with certain ripple effects of lockdowns and business closures. The past couple of years have witnessed a significant increase in the number of people claiming out-of-work benefits. According to statistics shared by BBC, around 2.6 million people were seeking Job Seeker’s Allowance or Universal Credit in April 2021. It does not mean that all of these claimants are completely out of work; it just happens that the pandemic has led to a rise in many individuals cutting short their working hours by working part-time and that has led to low incomes.

When Do I Tell DWP That I Have A Job?

You should inform the Department for Work and Pensions immediately when you have a job, an increase in pay or any other change in circumstances that affect your eligibility criteria or the scale of payments that you receive in the form of Universal Credit (or any other state benefit). 

In case of finding a job, you are required to provide the below information to the DWP:

  • who your employer is 
  • the date when the job will start 
  • the date by when your pay will increase

Conclusion:

Through this article, we have come to learn that when someone voluntarily resigns from their workplace, not only do they remain eligible for any previous benefits that they were claiming but may also be able to claim additional benefits including Job Seekers Allowance and Universal Credit. For this purpose, they must be able to provide evidence of sound reasons for their resignation; which may include anything from voluntary redundancy to workplace harassment.

FAQs: What Benefits Can I Claim If I Resign From My Job In The UK?

Can I claim benefits if I quit my job in the UK?

Yes, you can claim benefits if you quit your job in the UK. When someone voluntarily resigns from their workplace, not only do they remain eligible for any previous benefits that they were claiming but may also be able to claim additional benefits including Job Seekers Allowance and Universal Credit. For this purpose, they must be able to provide evidence of sound reasons for their resignation; which may include anything from voluntary redundancy to workplace harassment.

What reasons can you quit a job and still get unemployment benefits in the UK?

If you quit your job due to any of the following reasons, you may still be able to get unemployment benefits in the UK:

  • You have opted for Voluntary Redundancy 
  • Your pay was below the National Minimum Wage 
  • The working conditions failed to health and safety standards
  • You were being bullied or harassed at work
  • You had to work under a zero-hour contract

What benefits can you get if you resigned from your job?

If you resign from your job on professional terms and are able to provide evidence for having sound reasons for leaving your workplace, you may be able to claim the following benefits:

  • New Style Jobseeker’s Allowance
  • New Style Employment and Support Allowance
  • Universal Credit
  • Pension Credit

 

Can you claim Universal Credit if you quit your job?

Yes, you can claim Universal Credit if you quit your job. You may also claim New Style Jobseeker’s Allowance, New Style Employment and Support Allowance and Pension Credit. Additionally, you can also claim an income tax refund until your find another job. However, it is not essential to be unemployed to claim Universal Credit.

 

Will I get paid if I resign with immediate effect?

Yes, even if you resign with immediate effect, your employer is supposed to pay you for the days and hours that you have worked until the time of your resignation. There may be exceptions only in cases where it is categorically mentioned in the employment contract that a resignation without notice may lead to reductions in the amount due for payment to the employee.

References:

Being made redundant: finding work, claiming benefits and managing debts – GOV.UK

Deciding whether to resign – Citizens Advice

Will I lose out on benefits if I leave my job voluntarily

Apply for Council Tax Reduction

Council Tax Support | Claiming Benefits

Report benefits change

Jobseeker’s Allowance (JSA) – GOV.UK (www.gov.uk)

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