subject: The Alternative Option to Jobseekers' Allowance [print this page] The Alternative Option to Jobseekers' Allowance
In the first three months of 2010, unemployment rose to 2.47 million. Although this was a less dramatic rise than was expected, many economists predict a further rise due to the upcoming job losses expected in the public sector. Some positive news has come form financial experts who believe that unemployment will peak at around 2.7 million, a figure far lower than was initially thought. In addition to this, those signing on to claim jobseekers' allowance actually fell by 30,900 in May, which translates as 4.6% of the workforce.
Despite this, there are still almost 1.5 million UK citizens claiming jobseekers' allowance, with 926,000 of those within the 16-24 age group. For graduates the situation has been particularly bleak, with a meagre amount of job opportunities on offer. Although the general situation is improving, graduates will be experiencing the consequences for years to come due to a chain reaction effect; the supply has been far greater than the demand, and has therefore created a backlog of graduate job seekers.
For those who have been made redundant as a result of the recession, the 'signing-on' ritual of the job centre can be a disheartening experience. The transition from a decent, stable salary to the jobseekers' allowance (51 for those under 25, 65 for those 25 and over) can be a difficult one to make, not least because of the severe drop in earnings. This need not be the only solution.
As an alternative, Income Payment Protection can provide security in times of unemployment. With some policies offering up to 75% of your original earnings while you are out of work, or are unable to work temporarily. For a monthly contribution, one can safeguard their lifestyle for the period in which they are unemployed, which means that there is one less aspect to worry about during an already anxious time. IPP is a back-up plan, the significance of which is bolstered by the current economic instability in which unemployment, though gradually slowing, remains on the rise.
