voluntary redundancy

wiwori_steve

I work for a local authority and have been offered the option of voluntary redundancy. Someone has told me that I that if I take this up then I will not be able to use the money for anything other than living on or I will not be able to claim any benefits. Is this the case? If I use the money to clear my debts (mortgage) then is that classed as living on the money or I am I causing problems for myself??

p.s. this will be my first spell out of work in 40 years and at age 56 I don't hold much hope of being able to get another job

alwaysonthego_2

If you have paid enough NI conts for tax years 07-08 and 08-09 you will be entitled to contribution based JSA, for 6 months, and it does not take into account savings/income.

Rough;y how much savings will you have?

Jowo_2

Google the following terms to get a bit more info on it. Perhaps they are referring to the 'deprivation of capital' rules where 'notional capital' is assumed when people apply for means tested benefits and are found to have deliberately spent or given away their assets and savings, or paid off non priority debts, in order to qualify for benefits.

This type of thing covers scenarios where someone gets an inheritance and then squanders it on a new expensive car, expensive holidays and gifts for relatives in order to be able to keep claiming benefits, for example. It also covers scenarios where elderly relatives transfer their properties to their children to try and avoid having to pay for care home fees in the future, for example. We do actually get posts on this forum where a long term benefit claimant sees coming into a lump sum as a curse because they are used to 'free money' and can't handle the prospect of having to pay their living expenses with their own money....!

I did once come across a ruling where a person had been made redundant, had paid off their mortgage and then was disallowed claiming benefits by the DWP. The judge actually found in the persons favour and ordered the DWP to pay the benefits, saying the paying off of a mortgage by a mature person couldn't be classed as deprivation of capital. I doubt that I can find details of this judgement anyhow and can't remember the specific details.

However, do take expert advice - the paying off of certain debts when not seen to be necessary is classed as deprivation of capital.

Be_Happy

The person who gave you the info may have been thinking of the fact that this would be voluntary redundancy. I don't know if the rules have changed, but this used to be classed as 'choosing to give up your job' and you would have to wait a period of time (6 months?) before being able to claim JSA. The employer has to class it merely as 'redundancy'.

alwaysonthego_2

Be_Happy wrote: »

The person who gave you the info may have been thinking of the fact that this would be voluntary redundancy. I don't know if the rules have changed, but this used to be classed as 'choosing to give up your job' and you would have to wait a period of time (6 months?) before being able to claim JSA. The employer has to class it merely as 'redundancy'.

This no longer applies.