Social Security Programs Throughout the World: Europe, 2006

 

Isle of Man

Exchange rate: US$1.00 equals 0.58 pounds (£).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1948.

Current laws: 1992 (consolidated legislation); 1995 (pensions); 1999 (welfare reform and pensions), implemented in 2000 and 2001; and 2004 (pensions).

Type of program: Social insurance and social assistance system.

Coverage

Contributory benefits: Employed persons aged 16 to 65 (men) or aged 16 to 60 (women) with weekly earnings of at least £84 (from April 2006).

Self-employed persons aged 16 to 65 (men) or aged 16 to 60 (women) with net annual income of at least £4,465 are covered for all benefits except the state second pension, work injury benefits, and contributory jobseeker's allowance.

Voluntary coverage for the basic retirement pension for nonemployed persons.

Noncontributory benefits: All persons residing in Isle of Man.

Source of Funds

Insured person: 10% of weekly earnings between £97 and £645 (from April 2006); certain married women and widows pay 3.85% of weekly earnings.

Around 16% of the insured's contribution is allocated to the Health Services Division toward the cost of medical benefits. The insured's contributions also finance sickness and maternity benefits, work injury benefits, and unemployment benefits.

Self-employed person: A flat-rate £2.75 a week. In addition, self-employed persons with annual profits between £5,035 and £33,540 (from April 2006) pay an earnings-related contribution of 8%.

Voluntary contributors pay a flat-rate £7.55 a week. Voluntary contributions finance only the flat-rate basic state retirement pension and bereavement benefits.

A percentage of the self-employed person's contribution is allocated to the Health Services Division to assist with the costs of medical benefits. The self-employed person's contributions finance all benefits except the state second pension, work injury benefits, and the contributory jobseeker's allowance.

Employer: 12.8% of the employee's weekly earnings greater than £97 (from April 2006).

Around 16% percentage of the employer's contribution is allocated to the Health Services Division toward the cost of medical benefits. The employer's contributions also finance sickness and maternity benefits, work injury benefits, and unemployment benefits.

Government: The total cost of means-tested allowances and other noncontributory benefits.

Qualifying Conditions

Basic state retirement pension (flat-rate): Age 65 (men) or age 60 (women, rising gradually to age 65 from 2010 to 2020). To receive the full pension, contributions must have been paid or credited for 90% of the years in the working life.

Partial pension: The pension is proportionately reduced for a coverage period of less than 90% of the years in the working life. A basic retirement pension is not payable if contributions (paid or credited) cover less than 25% of the years in the working life.

Early pension: There is no early pension.

Deferred pension: The pension can be deferred for an unlimited period.

The basic retirement pension is payable abroad, though annual increases for changes in the cost of living are only payable if living in a country with a reciprocal agreement.

Pension supplement: Payable if ordinarily residing in Isle of Man, has at least 10 years of contributions paid in Isle of Man, and is entitled to the retirement pension.

State second pension (S2P): Age 65 (men) or age 60 (women, rising gradually to age 65 from 2010 to 2020). The earnings-related pension is based on contributions paid as an employed person on earnings between the lower and upper earnings limit in any tax year from April 1978.

The annual lower earnings limit is £4,368 (from April 2006).

The annual upper earnings limit is £33,540 (from April 2006).

The pension is payable abroad, though annual increases for changes in the cost of living are only payable if living in a country with a reciprocal agreement.

Old person's pension (noncontributory retirement pension): Payable at age 80 or older if the insured receives less than 60% of the full basic retirement pension. The insured must be ordinarily residing in Isle of Man and must have lived in Isle of Man or the United Kingdom for at least 10 years in any 20-year consecutive period after age 60.

The old-person's pension is payable abroad.

Retirement pension premium: Must be older than age 75, ordinarily residing in Isle of Man, and eligible for or receiving a retirement pension. The insured must have at least 10 years of contributions paid in Isle of Man.

Long-term incapacity benefit: Payable to men younger than age 65 and women younger than age 60 who are unable to work as the result of an illness or a disability. The insured must have contributions paid on earnings of at least 25 times the weekly lower earnings limit in one of the last 3 tax years before the benefit claim year, plus contributions paid or credited on earnings of at least 50 times the weekly lower earnings limit in both of the last 2 tax years before the claim starts. The benefit is payable after 52 weeks of incapacity for work (as determined by a medical assessment) or after 28 weeks if terminally ill or receiving the highest-rate care component of the disability living allowance.

The benefit is also payable under specific conditions to persons who became incapable of work in their youth, became incapable of work and whose spouse died before April 9, 2001, or are incapable of work and are aged 16 to 19 (in some cases, age 24).

Pension supplement: Payable if older than age 45, ordinarily residing in Isle of Man, with at least 10 years of contributions paid in Isle of Man, and entitled to the long-term incapacity benefit.

Disability living allowance (noncontributory, no means test): Payable if the date of onset of disability was before age 65. The person must reside permanently in Isle of Man and have lived in Isle of Man or the United Kingdom for at least 6 of the last 12 months. The allowance is determined by care and mobility needs and is payable after 3 months of disability (except if terminally ill).

Attendance allowance (noncontributory, no means test): Payable if the date of onset of disability was at age 65 or older and the person needs a high level of care. The person must reside permanently in Isle of Man and have lived in Isle of Man or the United Kingdom for at least 6 of the last 12 months. The allowance is usually payable after 6 months of disability (except if terminally ill).

Disability working allowance (noncontributory, means-tested): Payable for persons enrolled in a training course, starting work, or already employed for at least 16 hours a week, but who have an illness or disability that puts them at a disadvantage in securing employment. The person receives a qualifying benefit (such as the disability living allowance or attendance allowance) or had received one of the following benefits in the 8 weeks before making the claim: incapacity benefit (short-term high rate or long-term rate), severe disablement allowance, or income support (in certain circumstances). The insured or his or her partner must have been born in Isle of Man, qualify as an Isle of Man worker, or have resided in Isle of Man for at least 6 months. The income test varies according to the family situation, number of children, housing costs, number of hours worked, and child care costs.

Carer's allowance (noncontributory, earnings-tested): Payable to an insured person who forgoes full-time work to care for a severely disabled person (receiving certain qualifying benefits) for 35 or more hours a week. The carer must be older than age 16 and younger than age 65 at the time of the claim and not be a full-time student or earn more than £84 a week. The carer must reside permanently in Isle of Man and have lived in Isle of Man or the United Kingdom for at least 6 of the last 12 months.

Widow's pension: The deceased was a pensioner or met the requirements for a basic state pension at the time of death. The pension is payable to widows and for transitionally protected cases only. The pension is payable abroad.

Widowed parent's allowance: For widow(er)s who have children for whom they receive child benefits and to pregnant widows. The deceased spouse had paid at least 52 weeks of contributions (50 if before 1975) and had paid contributions for at least 25% of his or her working life (90% for the full-rate benefit). The survivor must be younger than the normal pensionable age and have been married to the deceased at the time of death.

Bereavement allowance: The survivor must be aged 45 or older when the spouse died or when the widowed parent's allowance ceased. The deceased spouse had paid at least 52 weekly contributions (50 if before 1975) and had paid contributions for at least 25% of his or her working life (90% for the full-rate benefit). The allowance is payable for 52 weeks following the date of widowhood. The survivor must have been married to the deceased at the time of death. The allowance is payable abroad.

Pension supplement: Payable if older than age 45, ordinarily residing in Isle of Man, with at least 10 years of contributions paid in Isle of Man, and entitled to the widow's pension, widowed parent's allowance, or basic bereavement allowance.

Bereavement payment: Payable to widow(er)s younger than age 60 or for a survivor whose spouse was not entitled to the basic state pension at the time of death. The spouse had paid at least 25 weekly contributions in any tax year, or his or her death was caused by their job. The survivor must have been married to the deceased at the time of death.

Guardian's allowance: Payable for rearing an orphan or, in very limited circumstances, a child with one surviving parent. At least one of the child's deceased parents was born in Isle of Man or spent 52 weeks of any 2-year period after age 16 in Isle of Man. The allowance is payable in addition to child benefits for the same child.

Funeral grant (universal benefit): The deceased ordinarily resided in Isle of Man.

Income support (noncontributory, means-tested social assistance): The benefit is payable to those with income below prescribed levels and who ordinarily reside in Isle of Man. Certain income (including child benefits) may be disregarded when calculating entitlement. The benefit is payable to unemployed persons not required to seek employment, such as elderly, sick, or disabled persons; single parents; and carers. Assistance can be given with housing costs, and single payments can be made to cover urgent and exceptional needs. Personal savings over £12,000 may reduce the benefit payable. The benefit is not payable to persons working for more than 16 hours a week (or whose partner is working 24 or more hours a week).

Old-Age Benefits

Basic state retirement pension (flat-rate): The maximum weekly pension is £84.25 (from April 2006).

Dependent's supplement: £50.50 a week is paid for each dependent adult (from April 2006). An additional £2 a week is paid for a dependent older than age 80.

Early pension: There is no early pension.

Deferred pension: The pension is increased by approximately 10.4% for each year of deferral, subject to a minimum deferral period of 5 weeks. If receipt of the pension is deferred for at least 12 consecutive months, the awarded increase may be paid as a taxable lump sum plus interest.

There is no earnings test for pensioners who work while receiving the basic retirement pension.

A person who qualifies for both the basic retirement pension and the carer's allowance (see permanent disability benefits, below) receives the higher of the two benefits.

Pension supplement: The weekly rate is equal to 50% of the basic retirement pension, up to a maximum of £42.13 (from April 2006).

State second pension (S2P): The pension is based on average indexed earnings.

Retirement pension premium: £12.40 a week is paid (from April 2006), minus any entitlement from the state second pension or old person's pension.

Old person's pension: £50.50 a week (from April 2006), minus any basic state pension entitlement. The pension is paid weekly or monthly.

Benefit adjustment: Benefits are adjusted annually in April according to increases in the United Kingdom retail price index.

Income support (noncontributory, means-tested social assistance): Cash benefits are payable to those with income below prescribed levels, subject to conditions. Benefits vary according to the claimant's age, family situation, number of children, and housing costs.

Benefit adjustment: Benefits are adjusted annually in April according to increases in the United Kingdom retail price index.

Permanent Disability Benefits

Long-term incapacity benefit: £78.50 a week (from April 2006) is payable from the 53rd week of incapacity (or starting from the 29th week if terminally ill) following the payment of a short-term incapacity benefit (see Sickness and Maternity, below). A supplement is payable if the disability began before age 45.

Dependent's supplement: £50.50 a week is paid for each dependent adult (from April 2006).

Pension supplement: The weekly rate is equal to 50% of the long-term incapacity benefit, up to a maximum of £39.25 (from April 2006).

Disability living allowance (noncontributory, no means test): The care component is £62.25, £41.65, or £16.50 a week according to needs (from April 2006). The mobility component is £43.45 or £16.50 a week according to needs (from April 2006). The benefit is paid weekly or monthly.

Attendance allowance (noncontributory, no means test): £41.65 or £62.25 a week according to needs (from April 2006).

Disability working allowance (noncontributory, means-tested): The claimant is employed for at least 16 hours a week and has an illness or disability that puts the person at a disadvantage in securing employment. The allowance is £0.70 for every £1 that income falls below the prescribed level depending on the size of the family, the number of work hours, and other factors. Personal savings over £12,000 may reduce the benefit payable. The allowance is paid weekly and is awarded for between 4 and 26 weeks; thereafter, the award may be renewed.

Carer's allowance (noncontributory, earnings-tested): £46.95 is paid weekly to an insured person who earns less than £84 a week (after deducting allowable expenses) and who cares for a severely disabled person (who receives certain qualifying benefits) for 35 hours or more each week (from April 2006). The payment of the benefit may continue for up to 8 weeks after the death of the person cared for.

Benefit adjustment: Benefits are adjusted annually in April according to increases in the United Kingdom retail price index.

Income support (noncontributory, means-tested social assistance): Cash benefits are payable to those with income below prescribed levels, subject to conditions. Benefits vary according to the claimant's age, family situation, number of children, and housing costs.

Benefit adjustment: Benefits are adjusted annually in April according to increases in the United Kingdom retail price index.

Survivor Benefits

Widow's pension: Up to a maximum of £84.25 is paid a week (from April 2006).

Pension supplement: The weekly rate is equal to 50% of the widow's pension, up to a maximum of £42.13 (from April 2006).

Widowed parent's allowance: Up to a maximum of £84.25 is paid a week (from April 2006).

Pension supplement: The weekly rate is equal to 50% of the widowed parent's allowance, up to a maximum of £42.13 (from April 2006).

Bereavement allowance: The allowance varies according to the survivor's age when widowed, up to a maximum of £84.25 a week (from April 2006).

Pension supplement: The maximum weekly rate is equal to 50% of the maximum bereavement allowance (from April 2006).

Bereavement payment: A lump sum of £2,000.

Guardian's allowance: £12.20 a week is paid for each child.

Universal funeral payment: £210 is paid if the death occurs in Isle of Man; £350 is paid if the death occurs outside Isle of Man and burial or cremation is to take place within Isle of Man (from April 2006). Additional support is provided to persons receiving income-related benefits and whose savings are less than £12,000.

Benefit adjustment: Benefits are adjusted annually in April according to increases in the United Kingdom retail price index.

Administrative Organization

Isle of Man Department of Health and Social Security, Social Security Division (http://www.gov.im/dhss/security/), collects national insurance contributions and administers and distributes pensions and benefits.

Sickness and Maternity

Regulatory Framework

First law: 1951.

Current laws: 1992 (pensions), 1994 (incapacity benefit), 1999 (welfare reform and pensions), 2001 (national health service), and 2004 (pensions).

Type of program: Social insurance, social assistance (cash benefits), and universal (medical benefits) system.

Coverage

Short-term incapacity benefit: All those who satisfy certain contribution conditions, whether or not employed at the onset of incapacity.

Maternity allowance: All women who satisfy certain employment and earnings rules.

Payment for maternity expenses: Expectant mothers who receive, or whose partner receives, income-related benefits.

Medical benefits: All persons residing in Isle of Man.

Source of Funds

Insured person: For incapacity benefit and maternity allowance, see source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: For incapacity benefit and maternity allowance, see source of funds under Old Age, Disability, and Survivors, above.

Employer: For incapacity benefit and maternity allowance, see source of funds under Old Age, Disability, and Survivors, above.

Government: Most of the cost of medical benefits and the total cost of means-tested allowances.

Qualifying Conditions

Short-term incapacity benefit: The insured must have at least 4 consecutive days of sickness within a period of incapacity for work. Contributions must be paid on earnings of at least 25 times the weekly lower earnings limit (£84 from April 2006) in one of the last 3 tax years before the benefit claim year, plus contributions paid or credited on earnings of at least 50 times the weekly lower earnings limit (£84 from April 2006) in both of the last 2 tax years before the claim starts.

The insured must be younger than the state pension age of 65 (men) or 60 (women).

Maternity/adoption allowance: All employed or self-employed earners must have worked for at least 26 weeks in the 66-week period before the expected week of childbirth and have earned at least £30 a week or paid self-employed contributions for at least 13 of those weeks. Insured women who do not meet the qualifying conditions for a maternity allowance may qualify for a short-term incapacity benefit for 6 weeks before and 2 weeks after the expected date of childbirth.

Men and women are eligible to receive a benefit for the adoption of a child, but only one member of a couple will receive the allowance. Self-employed persons are not eligible for the adoption allowance.

Paternity allowance: The insured must be employed continuously for at least 26 weeks by the same employer up to and including the 15th week before the date of childbirth (in case of adoption, 26 consecutive weeks immediately before the date the adoption is confirmed) and ordinarily reside in Isle of Man. The insured's weekly earnings must be at least equal to the lower earnings limit (£84 from April 2006) in any 8 weeks of the 26-week period. The beneficiary is the child's father, is married to the child's mother or the person adopting the child, or is living with the child's mother or the person adopting the child in an enduring family relationship. Self-employed persons are not eligible.

Medical benefits: All residents.

Income support (noncontributory, means-tested social assistance): The benefit is payable, depending on circumstances, to those with income below prescribed levels who ordinarily reside in Isle of Man. Certain income, including child benefits, may be disregarded when calculating entitlement. The benefit is also payable to unemployed persons who are not required to seek employment, such as elderly, sick, or disabled persons; single parents; and carers. Assistance can be given with housing costs, and single payments can be made to cover urgent and exceptional needs. Personal savings over £12,000 may reduce the benefit payable. The benefit is not payable to persons who are working 16 hours or more a week.

Sickness and Maternity Benefits

Short-term incapacity benefit: The benefit is payable after a 3-day waiting period at a lower and a higher rate. The lower rate is payable for the first 28 weeks at £59.20 (from April 2006), plus £36.60 a week for a dependent adult. The higher rate is payable from the 29th to the 52nd week at £70.05 a week (from April 2006), plus £36.60 a week for a dependent adult.

Maternity/adoption allowance: The allowance is payable for up to 26 weeks starting no earlier than 11 weeks before the expected date of childbirth or 2 weeks before the child is placed for adoption. The standard rate is 90% of average earnings.

Average earnings are based on earnings in the 13 weeks with the highest earnings during the 66-week period before the expected date of childbirth or adoption.

The maximum weekly benefit is £174.65 (from April 2006); £108.85 for a self-employed person.

Dependent's supplement: £36.60 a week is paid for a dependent adult (from April 2006).

Paternity allowance: The allowance is equal to 90% of the insured's average earnings and is payable for up to 2 weeks in the first 8 weeks following the date of birth or adoption of the child (beneficiaries may opt to claim the benefit for only 1 week).

The maximum weekly benefit is £174.65 (from April 2006).

Benefit adjustment: The standard rates of the short-term incapacity benefit and the maternity allowance are adjusted annually in April each year according to increases in the United Kingdom retail price index. The maximum rates of the maternity allowance and the paternity allowance are adjusted annually according to the increase in average earnings on the Isle of Man.

Income support (noncontributory, means-tested social assistance benefit): Cash benefits are payable to those with income below prescribed levels.

Workers' Medical Benefits

Medical services are provided by doctors and dentists under contract with and paid directly by the Health Services Division of the Department of Health and Social Security. Benefits include general practitioner care, specialist services, hospitalization, maternity care, dental care, medicines, appliances, home nursing, and family planning.

Social security benefits are paid at the full rate for the first 52 weeks of hospitalization; thereafter, may be reduced to £16.40 a week.

Cost sharing: Patients pay £3 for each prescription and 80% of the cost of dental work, up to a maximum of £390 (periodic check-ups are free). Exemptions from prescription and dental charges are available to those receiving income-related benefits and their dependents, students younger than age 19, nursing mothers, all people aged 60 or older (prescription charges only), and war pensioners. Women aged 60 or older and men aged 65 or older are exempt from dental charges.

There is no limit to duration.

Dependents' Medical Benefits

Medical services are provided by doctors and dentists under contract with and paid directly by the Health Services Division of the Department of Health and Social Security. Benefits include general practitioner care, specialist services, hospitalization, maternity care, dental care, medicines, appliances, home nursing, and family planning.

Dependents' supplements are paid at the full rate for the first 52 weeks of hospitalization; thereafter, may be reduced to £16.40 a week.

Cost sharing: Patients pay £3 for each prescription and 80% of the cost of dental work, up to a maximum of £390 (periodic check-ups are free). The dependents of those receiving income-related benefits are exempt from prescription and dental charges.

There is no limit to duration.

Administrative Organization

Isle of Man Department of Health and Social Security, Social Security Division (http://www.gov.im/dhss/security/), collects National Insurance payments and administers and distributes pensions and benefits.

Health Services Division (http://www.gov.im/dhss/health/main) administers and provides medical services.

Work Injury

Regulatory Framework

First law: 1948.

Current law: 1992 (consolidated legislation).

Type of program: Social insurance system.

Coverage

Employed earners.

Exclusions: Self-employed persons and members of the armed forces.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, and Survivors, above.

Government: See source of funds under Old Age, Disability, and Survivors, above.

Qualifying Conditions

Industrial injuries disablement benefit: There is no minimum qualifying period. In the case of work-related injury, the insured must be an employee and must ordinarily reside in Isle of Man.

Income support (noncontributory, means-tested social assistance): Payable to persons with income below prescribed levels who ordinarily reside in Isle of Man. Certain income, including child benefit, may be disregarded when calculating entitlement. The benefit is also payable to unemployed persons not required to seek employment, such as sick or disabled persons or carers. Assistance can be given with housing costs, and single payments can be made to cover urgent and exceptional needs. Personal savings exceeding £12,000 may reduce the benefit payable. Benefits are not payable to persons working 16 hours or more a week.

Temporary Disability Benefits

Short-term incapacity benefit: The benefit is payable after a 3-day waiting period at a lower and a higher rate. The lower rate is payable for the first 28 weeks at £59.20 (from April 2006), plus £36.60 a week for a dependent adult. The higher rate is payable from the 29th to the 52nd week at £70.05 a week (from April 2006), plus £36.60 a week for a dependent adult.

Income support (noncontributory, means-tested social assistance): The benefit amount depends on income and circumstances.

Permanent Disability Benefits

Industrial injuries disablement benefit: If the insured is assessed as 100% disabled, up to £127.10 a week is payable from the 90th day after the accident or the onset of the disease (from April 2006). The benefit is paid weekly or monthly.

A reduced benefit is paid if the insured is younger than age 18 and has no dependents.

A medical board assesses the degree of disability.

Partial disability: The benefit varies from £25.42 a week for an assessed degree of disability of at least 15% up to a maximum of £114.39 a week for an assessed degree of disability of at least 90% (from April 2006).

No benefit is payable for an assessed degree of disability of 14% or less, unless the insured is diagnosed with pneumoconiosis, byssinosis, or diffuse mesothelioma.

Constant-attendance allowance: The weekly allowance is £25.45, £50.90, £76.35, or £101.80 according to attendance needs (from April 2006). (Other complementary benefits are payable under certain conditions to persons with severe disabilities, with difficulties finding any form of suitable employment, or disabled from a young age.)

The industrial injuries disablement benefit is payable in addition to any contributory benefits the insured may also be entitled to, including the long-term disability benefit or retirement pension.

Workers' Medical Benefits

All necessary benefits are provided by the Health Services Division of the Department of Health and Social Security.

Survivor Benefits

Widowed parent's allowance: Up to a maximum of £84.25 a week is paid to a widowed parent with at least one dependent child for whom he or she receives child benefits (from April 2006). The allowance is paid weekly or monthly.

Pension supplement: The weekly rate is equal to 50% of the widowed parent's allowance, up to a maximum of £42.13.

Partial allowance: A reduced allowance is payable if the deceased made contributions for between 25% and 90% of his or her working life.

The allowance ceases on reaching the state pension age of 65 (men) or 60 (women) or on remarriage. The allowance is suspended if the survivor is cohabiting with a life partner.

Bereavement allowance: The allowance varies according to the survivor's age when widowed: the maximum rate of £84.25 a week is paid if aged 55 or older (from April 2006); a percentage of the full rate is paid if aged 45 to 54. The allowance is paid weekly or monthly from the first day after the spouse's death for up to 52 weeks.

The allowance ceases on remarriage and is suspended if the survivor is cohabiting with a life partner.

Bereavement payment: A lump sum of £2,000 is payable immediately to help with costs arising on the death of a spouse.

Guardian's allowance: £12.50 a week is paid per child (from April 2006).

Universal funeral payment: £210 is paid if the death occurs in Isle of Man; £350 is paid if the death occurs outside Isle of Man and burial or cremation is to take place within Isle of Man (from April 2006). Additional support is provided to persons receiving income-related benefits and whose savings are less than £12,000.

Administrative Organization

Isle of Man Department of Health and Social Security, Social Security Division (http://www.gov.im/dhss/security/), collects National Insurance payments and distributes benefits.

Health Services Division (http://www.gov.im/dhss/health/main) administers and provides health care.

Unemployment

Regulatory Framework

First law: 1948.

Current law: 1995 (jobseekers).

Type of program: Social insurance and social assistance system.

Coverage

Social insurance: All unemployed jobseekers meeting the qualifying conditions.

Exclusions: Self-employed persons. (Excluded persons may qualify for assistance under the social assistance program.)

Social assistance: All persons residing in Isle of Man with income below prescribed levels.

Exclusions: Persons working 16 or more hours a week or whose partner works 24 or more hours a week.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: None.

Employer: See source of funds under Old Age, Disability, and Survivors, above.

Government: The total cost of noncontributory social assistance allowances.

Qualifying Conditions

Jobseeker's allowance (social insurance): The insured must be aged 16 or older (but younger than the state pension age), involuntarily unemployed, or working fewer than 16 hours a week. Contributions must have been paid on earnings of at least 25 times the lower earnings limit (£84 from April 2006) in one of the last 2 tax years before the start of the benefit year (January to December) in which the claim is made. The insured must have paid or credited contributions on earnings of at least 50 times the lower earnings limit in both of the 2 tax years immediately before the start of the benefit year in which the claim is made.

Must be registered as unemployed, be capable of and actively seeking employment, be earning less than a prescribed amount, be physically present in Isle of Man, and have a current Jobseeker's Agreement.

The Jobseeker's Agreement is drafted and signed by the jobseeker and the jobseeker's advisor and obliges the jobseeker to actively seek training and work. Failure to sign a Jobseeker's Agreement results in the suspension of benefits.

Jobseeker's enhanced allowance: An additional weekly payment is made to those entitled to the jobseeker's allowance (social insurance) provided that the period of unemployment is preceded by 2 years' continuous employment in Isle of Man.

Jobseeker's allowance (social assistance): The allowance is payable to those not entitled to jobseeker's allowance (social insurance) or if the allowance payable is less than a prescribed amount. Income must not exceed a prescribed amount, and personal savings over £12,000 may reduce the benefit payable. Certain income, including child benefits, may be disregarded when calculating entitlement.

Must be registered as unemployed, be capable of and actively seeking employment, be earning less than a prescribed amount, be physically present in Isle of Man, and have a current Jobseeker's Agreement. There is no entitlement if a partner works 24 or more hours a week.

The Jobseeker's Agreement is drafted and signed by the jobseeker and the jobseeker's advisor and obliges the jobseeker to actively seek training and work. Failure to sign a Jobseeker's Agreement results in the suspension of benefits.

Unemployment Benefits

Jobseeker's allowance (social insurance): A flat-rate £57.45 a week is paid for up to 6 months if aged 25 or older, £45.50 a week if aged 18 to 24, or £34.60 a week if younger than age 18 (from April 2006). The allowance is payable after a 3-day waiting period.

Jobseeker's enhanced allowance: In addition to any entitlement to the jobseeker's allowance (social insurance), £57.45 a week is paid if aged 25 or older and £45.50 a week is paid if between ages 18 and 24 (from April 2006). The allowance is payable for up to 52 weeks after a 3-day waiting period. A supplement is also payable for an eligible adult dependent.

Jobseeker's allowance (social assistance): The allowance varies depending on the claimant's age, family income, and household composition. The claimant must be ordinarily residing in Isle of Man. Assistance can be given with housing costs, and single payments can be made to cover urgent and exceptional needs. Personal savings over £12,000 will reduce or eliminate the benefit payable. Benefits are not payable to persons working 16 or more hours a week (or whose partner works 24 or more hours a week).

Administrative Organization

Isle of Man Department of Health and Social Security, Social Security Division (http://www.gov.im/dhss/security/), collects National Insurance payments and distributes cash benefits.

Family Allowances

Regulatory Framework

First law: 1951.

Current law: 1992 (consolidated legislation).

Type of program: Universal (child benefit) and social assistance (family income supplement) system.

Coverage

All persons residing in Isle of Man with one or more dependent children.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Child benefit (noncontributory, universal benefit): The child must be younger than age 16 (age 19 if a student). Parents must have resided in Isle of Man or the United Kingdom for at least 182 days in the last 52 weeks or fulfill certain special conditions.

Maternity grant: Payable to women aged 16 or older whose pregnancy lasts at least to the 25th week or to an individual or couple adopting an infant younger than 12 months at the date of the claim. The beneficiary or his or her partner must be receiving an income-tested benefit (income support, jobseeker's allowance, social assistance, family income supplement, or disability working allowance).

Family income supplement (income-tested): Payable to employed or self-employed single or unmarried persons responsible for a child or a disabled adult and to married persons working at least 16 hours a week. The claimant was born in Isle of Man, is an Isle of Man worker, or permanently resided in Isle of Man during the last 6 months.

Income test: The family income threshold varies according to the number of children, housing costs, the number of hours worked, and child care charges. Certain income, including child benefits, may be disregarded when calculating family income.

Family Allowance Benefits

Child benefit (noncontributory, universal benefit): £19.90 a week is paid for children younger than age 16; £29.25 a week is paid for children in full-time education between ages 16 and 18 (from April 2006). The benefit is paid weekly or monthly.

Maternity grant: A lump sum of up to £380.

Family income supplement (income-tested): The supplement is £0.70 for every £1 that income falls below the assessed family income threshold for receiving the supplement. The benefit is paid weekly or monthly.

Income test: The family income threshold varies according to the number of children, housing costs, the number of hours worked, and child care charges. Certain income, including child benefits, may be disregarded when calculating family income.

Administrative Organization

Isle of Man Department of Health and Social Security, Social Security Division (http://www.gov.im/dhss/security/), administers and distributes benefits.