The person concerned was in receipt of unemployment assistance at the rate of £54.10 per week based on a means assessment of £79 per week, derived from self-employment.
He requested a review of his means. The review has been completed and he has been assessed with weekly means of £138, derived from self-employment and a small amount of capital. The revised assessment will be effective from 9 March 1994.
As the revised means exceed the maximum rate of assistance payable in his case of £133.10 per week he will not be entitled to assistance from 9 March.
The person concerned does not satisfy the contribution conditions for receipt of unemployment benefit, in particular, he does not have the necessary 39 paid or credited contributions in the relevant contribution year 1992-1993. Self-employed persons with income in excess of £2,500 per annum are insured under the social insurance system for old age and widow's pension purposes and pay a contribution at the Class S rate. They are not covered for unemployment benefit.
Unemployment benefit is intended to provide an employee with a replacement income in the event of involuntary loss of employment. An employee, by definition, supports himself-herself through earnings from employment. Loss of employment in such a case generally occurs as a result of a decision by the employer and the person is therefore in need of income maintenance. This is supplied through unemployment benefit.
In the case of a self-employed person, the overall income position rather than the week-to-week earnings is the relevant factor in regard to his-her need for income maintenance. The position of such a person between jobs would not be regarded as unemployment in the sense in which that term applies to employees.