Redundancy / Unemployment Benefit

HER

My father may become redundant after 35 years of employment. He is 59 years of age would he be entitled for enemployment benefits.

He does have a mortgage to pay.

My Mother works full time as a machine operator.

2 children who leave away from home.

He has savings of around 10, 000 pounds.

Could someone please advice. Thank You

briona

Hi HER

Has your father worked for 35 years in the same company?
With regards to statutory redundancy pay, to calculate the number of weeks pay due, you should use the following amounts:

• 0.5 week's pay for each full year of service where age during year less than 22
• 1.0 week's pay for each full year of service where age during year is 22 or above, but less than 41
• 1.5 weeks' pay for each full year of service where age during year is 41+

There's more info on the link below, although it only seems to allow you to go to 20 years' service, so I'm not clear whether that means that that's the maximum redundancy pay you can claim? Perhaps someone could clarify?

http://www.berr.gov.uk/whatwedo/employment/employment-legislation/employment-guidance/page33157.html

With regards to benefits, he could claim contributions-based JSA for 6 months, which is non-means tested, but after those 6 months, I doubt that he could claim anything, as with 10K already in savings plus whatever redundancy payment he receives he will more than likely be over the upper savings limit allowed.

To claim means-tested benefits, you need to have no more than 16K in savings/capital. Between 6K and 16K you can claim benefits but you lose £1 of benefits per every £250 or part thereof that you have in savings.

Hope that helps

Briona