RP1 claim (PILON) and JSA?

jules73_2

Hi

I have been made redundant and I'm entitled to claim notice period, but as the company went into adminstration, I will need to claim this using the RP1 form.
The question is, do I make a claim for JSA now, or do I wait until my claim for 3 months notice has ended?
I don't see the point in claiming JSA if it gets deducted from my notice pay claim, as I will effectively be losing out on 3 months JSA should I not manage to find a job in this time.
Does anyone know the answer to this and if so, what is your advice on this?

ClaireS

I was made redundant at the end of October and was unsure whether to claim JSA as i had heard if you get PILON that you cannot get JSA until the notice pay runs out. This is incorrect and i would urge you to start claiming straight away. As long as you have paid enough NI contributions over the last 2 years you will be entitled to JSA, it doesnt matter if you have/will recieve PILON.

Hope that helps.

lizzie_dripping

My husband was made redundant last December, but given 3 months PILON. he didn't receive any JSA until this period had expired but still signed on to get his NI contributions met. NI contributions can't be backdated to the date of leaving employment if you don't sign on immediately unless there is an exceptional reason.

ClaireS

I would suggest calling the job centre to clarify as there seems to be a difference of opinion.

I was paid 3 months PILON at the end of October 09 and have been claiming JSA for a month and have been getting £64.30 a week. As i said previously, if you have paid enough NI contributions within the last 2 tax years then they do not take into consideration any PILON/redundancy pay.

ALIBOBSY

They used to take into account the PILON but when a report looked into it they worked out it cost more in staff time/postage/calls etc to actually get PILON details from employers and input the computer details than it would cost in benefits to just ignore PILON periods.
Not sure of the date of change but it was fairly recent.
I believe any PILON would now be lumped in with the redundacy and treated as capital instead, but thie would only effect income based JSA, cont based as Claire said is just based on you contributions.

ali x

dickydonkin

lizzie_dripping wrote: »

My husband was made redundant last December, but given 3 months PILON. he didn't receive any JSA until this period had expired but still signed on to get his NI contributions met. NI contributions can't be backdated to the date of leaving employment if you don't sign on immediately unless there is an exceptional reason.

I can assure you that PILON will not affect an immediate claim for contribution base JSA following redundancy. PILON is classed as capital (such as savings etc.)and not wages.

Cousin_Yellowstone

I have recently been made redundant and have researched the issue of PILON and JSA entitlement extensively on the internet and have also spoken with two senior benefits advisers.

The bottom line is that PILON is classed as CAPITAL for the purposes of CONTRIBUTION BASED JSA.

This change came about as a result of The Social Security (Miscellaneous Amendments) Regulations 2008.

Quoting from the Explanatory Memorandum 2008 No.698 section 7.14 states:

In addition, following the October 2007 changes to the treatment of final earnings, pay in lieu of notice (PILON) is now fully disregarded in IS, as are compensation payments in JSA, where someone was previously in full-time remunerative work or was in part-time work which ceased prior to the first day of entitlement to IS or JSA. Further amendments are now required to remove obsolete references to PILON and to compensation payments within the IS and JSA Regulations.

My understanding is that a Compensation Payment is a payment made as part of a compromise agreement which is different to PILON which is in effect lump sum wages. I queried this with the benefits agency and was told that for the purposes of Contribution Based JSA they were classed as being the same.

I hope this clarifies things.

C.

Disclaimer: These are the results of my findings. If in doubt please speak with the benefits agency.

Ewarwoowar2

jules73 wrote: »

Hi

I have been made redundant and I'm entitled to claim notice period, but as the company went into adminstration, I will need to claim this using the RP1 form.
The question is, do I make a claim for JSA now, or do I wait until my claim for 3 months notice has ended?

Before you jump ahead of yourself, make sure you understand what you can claim from the National Insurance Fund via the RP1 form.

In relation to notice, my understanding is that you can only claim statutory notice from the fund i.e.

one week for employees continuously employed for one month or more but less than two years;
one week for each year of continuous employment of two years or more but less than 12 years;
12 weeks for 12 or more years of continuous employment.

Have a look here for more information:

http://www.insolvency.gov.uk/guidanceleaflets/redundancypayments/guideforips/guideforips.htm

barbie3030

You must also make sure you do claim JSA as soon as you can - as the RPO will deduct the payments from your notice pay even if you don't claim it. It will explain this in the booklet you have been given, but if in doubt, please do phone the administrator.

Hope that helps