Guidelines for suspension or cancellation

If a client has commenced full-time employment they cannot get Jobseeker Support. Generally, their benefit must be suspended or cancelled from the date they commenced employment.

If their full-time employment is for a limited period, there are different ways to treat the benefit depending on:

• the proposed length of employment
• the client's circumstances
• whether they qualify for Extra help such as Accommodation Supplement, Disability Allowance, Family Tax Credit, Best Start tax credit or in-work tax credit

In determining whether the Jobseeker Support should be suspended or cancelled, MSD will consider:

• if the employment is likely to last for less than 8 weeks
• if the client qualifies for Extra help during the period of employment
• whether the client gets Family tax credit and Best Start tax credit
• if the client qualifies for Working for Families Tax Credits from Inland Revenue.

Note when the client's employment is likely to last for less than 8 weeks, the Jobseeker Support should generally be suspended and not cancelled, so the client can have their benefit resumed once their employment ends.

Family tax credit and Best Start tax credit can be paid for a maximum of 8 weeks after a benefit is suspended or cancelled when a client commences full-time employment. Payment of tax credits will continue at the same rate that was paid while the client was getting a benefit.

For more information see:

• Family tax credit [no link find out why]
• Best Start tax credit

If a client commences full-time employment they may qualify for Extra Help as a non-beneficiary.

The client does not need to complete an application form if they were already getting the Extra Help with their main benefit. If they continue to qualify, the rate payable should be reviewed.

If the client qualifies for Extra help they are not already getting with their main benefit, a new application is generally required.

All clients on the social housing register, or renting social housing, must continue to declare any change in their circumstances, including their income, when their main benefit has been cancelled, that may affect the following:

• whether they still qualify for social housing while on the register
• the need to be allocated, assigned or let any particular social housing property
• whether they still qualify for social housing when they are a current tenant
• the need for particular property requirements in the place they are renting
• their calculated rate of Income Related Rent

MSD will record any changes in circumstances when cancelling the benefit, including the client's new income details. If the client does not yet know their new income details, MSD will ask them to provide the information as soon as possible.

For more information see:

• Social housing - duty to advise changes in circumstances
• Change in circumstances for current tenants
• Register management and referrals - change in circumstances