Contribution-Based Benefit

New Style JSA is a contribution based benefit: a claimant may be able to get it if they've paid enough National Insurance (NI) contributions, usually in the 2 full tax years before the year they're claiming in, with NI credits also able to count towards this. Similarly, New Style ESA requires a claimant to have worked as an employee or been self-employed and paid enough National Insurance contributions, usually in the last 2 to 3 years - National Insurance credits also count. Because entitlement turns on the NI record rather than means, savings and a partner's income generally do not affect these benefits in the way they affect Universal Credit.

Contribution-based benefits can be claimed instead of, or alongside, Universal Credit — a household's savings or a partner's earnings will not disqualify a claimant from New Style JSA or ESA, though any contribution-based benefit received is taken into account as income for Universal Credit purposes. A claimant cannot get New Style ESA if they claim Jobseeker's Allowance (JSA) or Statutory Sick Pay, reflecting the general rule that these contribution-based benefits are not paid in combination with each other. The State Pension is the other major contribution-based benefit, with entitlement built up over a working life through qualifying years of NI contributions or credits.