Can you claim housing benefit if receiving redundancy money

mediaO

Hello

I will be made redundant shortly. I have 1 dependent in full time education. Once I receive my redundancy payout (20k, have worked with company for long time) will I be able to claim housing benefit or is this redundancy money for everything including rent,council tax, debts, bills, general living expenses.

I currently also receive child and work tax credits. Will I still be able to claim? or do I receive nothing?

Stressful times ahead (i hope I lose some weight through the stress, might then just be a little worth while;))

richard9991

mediaO wrote: »

Hello

I will be made redundant shortly. I have 1 dependent in full time education. Once I receive my redundancy payout (20k, have worked with company for long time) will I be able to claim housing benefit or is this redundancy money for everything including rent,council tax, debts, bills, general living expenses.

I currently also receive child and work tax credits. Will I still be able to claim? or do I receive nothing?

Stressful times ahead (i hope I lose some weight through the stress, might then just be a little worth while;))

It will be treated as capitol as its over the £6000 allowed and between £6000 and £16000 they will take £1 for every £500 over £6000

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018926

McKneff

Try to think positively, why are you stressing because you have £20K in the bank. There are plenty of people who wouldnt mind the stress of having £20k and losing a few pounds in the process.

Can your dependant child find a part time job to help out.

Hope you find a job soon.

zzzLazyDaisy

mediaO wrote: »

Hello

I will be made redundant shortly. I have 1 dependent in full time education. Once I receive my redundancy payout (20k, have worked with company for long time) will I be able to claim housing benefit

No. You will be over the £16k upper limit on savings. There is a sliding scale of assistance for savings between £6 and £16k, so you will be able to claim once your savings drop, if you are still out of work. But google 'deprivation of capital' as some spending is not permitted for the purposes of calculating benefit and in that case you would be treated as still having the money.

mediaO wrote: »

I currently also receive child and work tax credits. Will I still be able to claim?

You will still be able to claim CTC, and the amount may go up as your income will have reduced. For Tax credits only the taxable interest is counted, and the first £300 of interest is disregarded. So for example, interest on an ISA is ignored because it isn't taxable.

You won't get WTCs because you are not working.

You should register for JSA. You will get contribution based JSA for 6 months. You may then go onto means tested JSA after that, but that will depend on your circumstances.

krisskross

I think it is a bit naughty to expect people who will never have £20K capital in their lifetime to help pay your rent.

flashnazia

mediaO wrote: »

Hello

I will be made redundant shortly. I have 1 dependent in full time education. Once I receive my redundancy payout (20k, have worked with company for long time) will I be able to claim housing benefit or is this redundancy money for everything including rent,council tax, debts, bills, general living expenses.

I currently also receive child and work tax credits. Will I still be able to claim? or do I receive nothing?

Stressful times ahead (i hope I lose some weight through the stress, might then just be a little worth while;))

Don't get too stressed. 20k redundancy is alot of money and way over the minimum statutory redundancy pay (maximum 30 weeks pay capped at £380 per week)

mediaO

krisskross wrote: »

I think it is a bit naughty to expect people who will never have £20K capital in their lifetime to help pay your rent.

There is nothing naughty about trying to find out your entitlement. Thanks everyone.

mandi

mediaO wrote: »

There is nothing naughty about trying to find out your entitlement. Thanks everyone.

Take no notice of krisscross Media.


She is a cranky at the best of times

But in answer to your post. I am afraid not .:)

michaelvintner

krisskross wrote: »

I think it is a bit naughty to expect people who will never have £20K capital in their lifetime to help pay your rent.

Why? The poster has been working for ages and got this money through being made redundant. They either earned a massive salary or were there many years to get a payout this size. I have no problem with my tax money going to help out someone who has paid into the system for ages.

I have a problem with all the layabouts who never work and expect everyone to pay for them.

Anyway for the original poster. You can claim contributions based JSA for 6 months. Make sure you have kept a record of your national insurance contributions for the last two years as the Jobcentre are almost certain to send you a letter saying you have not payed enough for the last two years. It took me two months to get any money out of them. I also got Local Housing allowance and council tax benefit. I was made redundant and got around £12000.

Best bit of advice I can give is apply and see what happens.

alwaysonthego_2

richard9991 wrote: »

It will be treated as capitol as its over the £6000 allowed and between £6000 and £16000 they will take £1 for every £500 over £6000

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018926

It's £1 for every £250 over £6000.

viktory

Mandi and skcollobcat10 both your posts have been reported. I was put 'on a yellow' for a much more minor infraction so hopefully you will both be similarly penalised. skcollobcat, not only are you offensive but also, stupidly, factually incorrect. If you are going to insult someone, at least get the insults right.