Annex A

Annex A

Dear Miss Murphy,

Thank you for your Freedom of Information request received on 12 August 2009. You asked for a breakdown of how the job seekers allowance benefit (England) of £64.50 a week is broken down. By that you mean how that actual amount was deemed the amount necessary to sustain a person for their job hunting and living expenses. You also wanted to know the name of the body/panel who makes such decisions.

The national rate of Jobseekers Allowance for 2009/10 for a person over 25 is £64.30 per week. The benefit rates do not reflect nor are they made up of specific items of household and other expenditure. Instead the rates are intended to cover overall household expenditure taken as a whole, including such things as food, normal replacement of clothing and local travel.

Each year the Government reviews the rates of benefit. A number of factors are taken into account during the review, the most important of which is the level of inflation. Two indexes are used to calculate any uprating. The first is the Retail Price Index (RPI), which is used for benefits, such as State Pension, Child Benefit etc. The RPI takes account of variations in a wide range of goods and services to reflect the typical change in costs (both increases and decreases) that people face from year to year. This includes the average change in council tax.

Income-related benefits, such as income-based JSA but also including contributory-based JSA, are increased by the “Rossi” index. This index is based on the RPI but excludes rent, mortgage interest payments, council tax and depreciation costs. Housing costs are separately provided for through Housing Benefit and JSA mortgage interest.

The RPI linked benefits must be reviewed and uprated annually by at least the level of inflation (Social Security Administration Act 1992). The Secretary of State has discretion as to whether or not to provide for annual increases in the Rossi linked benefits.

The proposed rates from this review are submitted to Parliament for approval and become law under The Social Security Benefits Up-rating Order. The current one for JSA is available to view through the Office of Public Sector Information website. Their web address is:

In many cases the basic rate of JSA is just one element of the total package of support that a person receives. Additional support may be available in terms of Housing Benefit and Council Tax Benefit, Child Benefit and Child Tax Credit and Disability Living Allowance.

Financial help can also be given for some work search costs. For example travel to interviewsin the UKcan be reimbursed in certain circumstances and help may also be available to cover other costs associated with starting work which might otherwise prevent someone taking up a suitable vacancy. Your local Jobcentre Plus adviser can provide you with more information on this.

If you have any queries about this letter please contact me quoting the reference number above.

Yours sincerely,

DWP Central FoI Team

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Your right to complain under the Freedom of Information Act

If you are not happy with this response you may request an internal review by e-mailing or by writing to DWP, Central FoI Team, 2nd Floor The Adelphi, 1-11, John Adam Street, LondonWC2N 6HT. Any review request should be submitted within two months of the date of this letter.

If you are not content with the outcome of the internal review you may apply directly to the Information Commissioner’s Office for a decision. Generally the Commissioner cannot make a decision unless you have exhausted our own complaints procedure. The Information Commissioner can be contacted at: The Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow Cheshire SK9 5AF