Really Confused. Benefits after Redundancy?

GeeGee73

i have removed the info from this OP. having re-read it today i see its pretty much useless as a guide to my position. yesterday i was worried, confused and in shock and probably tried too hard to understand things.

having had a nights rest and looked at things today i realise now i was completely confused about benefits.

i have left my introduction and the final points i would like to be clear on, everything else was irrelevant and has been removed.

thanks for the help i have received thus far.

hello.

i am still in a bit of shock after hearing i will be out of work after Christmas due to redundancy.

i have been working for my current employer for 15 years+. the process of being made redundant is progressing smoothly through the various stages and my line manager is brilliant. redundancy package is in place (statutory only). i am now working my notice.

i have done a bit of reading about what i may be entitled to assuming the worst and i dont find another job, but its all gobledygook to me as i have never had to claim benefits other than the WTC i get now.

Background:

when i leave my job i will have been working 34 hours per week and claiming tax credits. no children, i live in my mortgaged home with my partner. i understand no help is forthcoming for at least 39 weeks regarding the mortgage.

OH does not work and claims no benefits. this situation suits both of us for personal reasons and OH will not be claiming any benefits.

CAN SOMEONE HELP?

1. having worked for many years i will be on "contribution based JSA" which is currently £60.50?, savings are not taken into account for this element and it is payable for 26weeks?

2. due to this i wouldnt get the couples allowance of £94.95 which would only apply ONLY if i were on IB?

3. i have an insurance policy that should pay £500 per month to pay my mortgage, will this be classed as income when it comes to a Council tax claim?

4. taking all the above into account i could expect £60.50 JSA + £500.00 from my insurance and maybe some council tax help depending on how the £500 insurance money is treated? i MAY get the extra £34.45 couples allowance or definetely will NOT? i will lose any WTC?

i am feeling a little clearer about things today.

thanks so much.

proview

Remember to add your saving of £6,000 or more if your redundancy pay you of more than £6,000 depend on your age ! cos 15 years is a long term service like 15 weeks of redundancy pay out plus your work might pay you extra ! I had redundancy pay out of £5,000 myself from my ex-job after 14 years.

Benefits will be affected if saving of more than £6,000 in your bank.

Oldernotwiser

proview wrote: »

Remember to add your saving of £6,000 or more if your redundancy pay you of more than £6,000 depend on your age ! cos 15 years is a long term service like 15 weeks of redundancy pay out plus your work might pay you extra ! I had redundancy pay out of £5,000 myself from my ex-job after 14 years.

Benefits will be affected if saving of more than £6,000 in your bank.

Contributions based JSA isn't affected by savings.

Oldernotwiser

OP, if your OH doesn't want to claim benefits for personal reasons, should you be claiming on his behalf?

Oldernotwiser

Forget about IB; you've not mentioned being ill and it only confuses matters.

GeeGee73

thanks for the replies.

having had a nights reast things seem clearer to me today. i have updated my OP and made things alot more straight forward.

any help on the points that remain would be greatly appreciated.

GG

Oldernotwiser

Glad you've calmed down a bit. You should be able to claim the £60.50 per week contributions based JSA and the £500 per month insurance will pay (towards) your mortgage. If you're still unemployed after 39 weeks and your insurance finishes you'd be able to get help towards the interest on half your mortgage if it's a joint or towards all of it if it's yours alone.

I'm not big on tax credits and I'm still confused about your claiming for your partner who doesn't want to claim anyway. Sorry I can't be of more help.

cw18

As mentioned, contributions based JSA is not means tested. You will be entitled to this as long as you've paid enough Class 1 (I think that's what I was told) contributions in the 2007-08 tax year.

But whether you could get anything else will depend on what capital you have. As a couple you are allowed £6k in savings without it counting against you -- this includes any stocks & shares (owned outright, or value of a Unit Trust), any bank/building society accounts, any premium bonds, and any cash you have. This also includes your redundancy payment and your final pay cheque (which I assume you will receive around the time you leave).

(Note of warning: If you use any of your redundancy money to clear debts/reduce your mortage this will count against you if you apply for means tested benefits -- and you will treated as if you still have full and easy access to it)

If you have between £6k and £16k (as a couple) but qualify for means tested top-ups, then they deduct £1/week from the means tested part of your entitlement for each £250 (or part of £250 - so £510 counts as the same as £750).

Contributions based JSA will not automatically mean you get assistance with your Council Tax, as that is a means tested benefit.

Unless either of you is in receipt of high level DLA, then yes you have to wait 39 weeks for mortgage assistance -- and I believe that if you have a policy paying out at that point they still won't pay. They also only pay towards the interest -- the maximum you will get is Bank of England base rate + 1.38% on a maximum of £100,000.

I'm not sure when they start the clock running if you're not in receipt of means tested benefits -- I have a feeling they don't start until you do get something else. If you can't initiate a claim for mortgage assistance until April, then new (temporary) rules will be in force meaning it's a 13 week wait and they help with mortgages up to £175,000


(I'm in partially the same boat as you -- last day of employment is 26th November, but I'm going to be claiming Carers Allowance rather than JSA which is why I'm not 100% sure on how some of it works for you).

healy

As mentioned, contributions based JSA is not means tested. You will be entitled to this as long as you've paid enough Class 1 (I think that's what I was told) contributions in the 2007-08 tax year. END QUOTE.

The tax years they will look at are 2005/6 and 2006/7.

cw18

when I phoned to ask if I'd be entitled they said they didn't know without doing detailed checks (which they can't/won't do until I put in an application for it) -- and the confusion is 'cos I was off sick without pay for 4+ months in 2007-08 !!

healy

cw18 wrote: »

when I phoned to ask if I'd be entitled they said they didn't know without doing detailed checks (which they can't/won't do until I put in an application for it) -- and the confusion is 'cos I was off sick without pay for 4+ months in 2007-08 !!

They were wrong to say that. I am not a DWP basher but it seems like there is a severe lack of training these days as there seems to be alot of incorrect advice given these days.