Redundancy payment / Housing Benefit / JSA

cherry09

Hi

Myself and my partner are both beiong made redundant in the next few months. We will receive a total payment of £20,000 approx, this includes 10 weeks PILON.

We have about £14,000 in dept and was going to pay this off straight away to make sure we don't have it hanging over us.

Will this effect a claim then for housing benefit and JSA etc ???

We will be able to show that the money went to creditors from settlement literature etc and that we have not gone on a spending spree.

Any help would be appreciated.

Salazar_2

I believe if an individual applying for JSA has capital greater than £6000 then JSA will be reduced by a certain amount. The fact that there are two of you means that your remaining £6000 will equate to £3000 each so you should be okay.

They will ask to see your most recent bank statements and will ask for account numbers and sort codes of all accounts held between you to establish the true position. I think, based on what you've said, that you will qualify for JSA without penalty.