Income support (IS) is a means tested benefit for people who are not registered as unemployed and looking for a job. The amount payable is the difference between the claimant's net weekly income and the amount required to meet his or her needs calculated according to the IS rule. The payment of IS does not depend on a person's National Insurance contribution record and:
IS payable to some strikers or people interested in a trade
dispute is taxable. Payments are made by the Benefits Agency and
not through the National Unemployment Benefits System. Strikers are
not entitled to JSA (see
A single person cannot receive taxable benefit while on strike. A striker who is either married or are in a civil partnership or living with someone as husband or wife or civil partner, may receive benefit for his or her partner. This amount is taxable under the method described below.
In theory there are two categories of taxable claimant:
It has been rare for a couple under 18 to get IS since September 1988.
The Benefits Agency adds up the weekly amounts of taxable
benefit and benefit paid. These figures are notified to the Inland
Revenue on form P181 when the strike is over. Income tax is not
deducted from payments of benefit.
Regarding the procedure for taxing this IS, see EP8655 onwards. The suspension of tax refunds during a trade dispute is dealt with at EP1305.