Observation (CEACR) - adoptée 1998, publiée 87ème session CIT (1999)

With reference to its previous comments, the Committee notes the information provided by the Government in the reports on Conventions Nos. 102 and 44. It also notes the new comments on the application of the Convention by the Trade Unions Congress (TUC) received by the Office on 9 November 1998.

With respect to Part IV (Unemployment benefit), the TUC draws attention to the fact that, according to the statistics given in the Government's report, a man with a dependant wife and two children, who is not entitled to a means-tested jobseeker's allowance which amounts to 71.89 per cent of the standard wage plus family benefit, would receive contributory jobseeker's allowance worth only 41 per cent of the standard wage plus family benefit. The contributory jobseeker's allowance is below the Convention's minimum standards (45 per cent of the reference wage for a standard beneficiary). According to the TUC, there are several reasons why such a man might not be entitled to means-tested jobseeker's allowance. In particular, a worker who has been made redundant, and who has received 8,000 or more in compensation, would not be entitled to a means-tested allowance. For a person aged under 25 the situation would be worse, as he would receive a lower rate of benefit.

The Committee notes that, according to the information provided by the Government, the rules for the calculation of the income-based jobseeker's allowance, in most cases, are identical to those for income support. The amount of the income-based allowance varies depending on the age of the claimant and whether he or she is single or has a partner and children, and, where appropriate, mortgage interest payments. If the claimant has other income, benefit will in most cases be reduced by the amount of that income. It will also be reduced if the claimant has capital between 3,000 and 8,000. The Government adds that there will be no entitlement if this capital exceeds 8,000 or if the claimant's partner works 24 hours a week or more. The Committee notes in this respect that, according to section 12 of the Jobseekers Act 1995, in relation to a claim for jobseeker's allowance, the income and capital of a person shall be calculated or estimated in accordance with prescribed rules and that circumstances may be prescribed in which (a) a person is treated as possessing capital or income which he does not possess; (b) capital or income which a person does possess is to be disregarded; (c) income is to be treated as capital; (d) capital is to be treated as income. Section 13 of the Act further stipulates that no person shall be entitled to an income-based jobseeker's allowance if his capital, or a prescribed part of it, exceeds the prescribed amount, and that the income and capital of any member of the claimant's family shall be treated as the income and capital of the claimant. Detailed provisions implementing the above sections of the Act are included in the Jobseeker's Allowance Regulations 1996.

The Committee recalls in this respect that Article 67 read in conjunction with Article 22, paragraph 2, of the Convention allows the reduction of unemployment benefit where the beneficiary or his family has financial means under certain conditions. In particular, Article 67 provides that the rate of the benefit, which shall be determined according to a prescribed scale, may be reduced only to the extent by which the other means of the family of the beneficiary exceed substantial amounts prescribed by the legislation or fixed by the public authorities, so that the beneficiary should be allowed to have a reasonable amount of means of his own other than unemployment benefit. The total of the benefit and any other means after deduction of the substantial amounts shall be sufficient to maintain the family of the beneficiary in health and decency and shall not be less than the benefit calculated in accordance with Article 66 (45 per cent of the reference wage taking account of the family allowance paid during the employment and the contingency). In view of the complexity of the legislation and of the Government's statement under Convention No. 44 that in most cases benefit is reduced by the amount of any additional income of the claimant, the Committee would like the Government to supply full information on the manner in which the rules for the calculation of the income-based jobseeker's allowance take into account these provisions of the Convention and, in particular, the requirement that the reduction of the benefit is only authorized when the means of the beneficiary and his family exceed the substantial amounts referred to above. Please also supply the information requested under Article 67, Titles I and II, and Article 76, Title IV, by the report form of the Convention together with statistics on the number of persons receiving the income-based jobseeker's allowance. Furthermore, it would also like the Government to provide statistics on the level of this allowance for claimants under 25 years of age, taking into account that the income-based jobseeker's allowance varies depending on the age of the claimant, as well as to explain how the protection guaranteed by the Convention is ensured with respect of a claimant whose partner, while working 24 hours a week or more, receive wages which are below the level of the substantial amounts and the benefit calculated under Article 67 of the Convention. In addition, the Committee wishes to be informed of any measure taken by the Government to increase the level of the contribution-based jobseeker's allowance. Finally, noting the Government's intention to introduce a national minimum wage as soon as convenient and to make corresponding modifications in the jobseekers' legislation, it expresses the hope that the Government would provide information on any progress achieved in this respect.

The Committee raises a number of other points in a request addressed directly to the Government.

[The Government is asked to report in detail in 2000.]