Challenging Question!

dustywallet_2

I wasn't sure where to put this, but I need some advice.
I have been offered voluntary severance at work which amounts to about 15 and half grand. I would like to take this and leave but I am also 7 months pregnant. This means that they are reluctant to pay me maternity ( I am still waiting for them to get back to me about this).

Firstly I am wondering whether its a good idea to take the money. I have a mortgage, and obviously a baby on way. I could pay the mortgage for a several months (how do you do this in a lum sum?)

Will I be entitled to any benefits if my work says so to Statutory maternity pay? And if so, what benefits?

If I take voluntary severance (redundacy -kinda) what are the rules and regs about claiming benefits? I know nothing about the benefit system as I've never been entitled to anything.

Should I see a financial advisor?

I really don't know...

I was wondering whether anyone could help or point me in the right direction.

I have asked every agency you can think of, apart from a financial advisor and no-one seems to know anything!!

Thanks...x

kelloggs36

When would you be leaving if you were to take severance? Would it be after your baby is due?

dustywallet_2

kelloggs36 wrote:

When would you be leaving if you were to take severance? Would it be after your baby is due?

No, just before the baby is due.

kelloggs36

If you are made redundant, then you would be unemployed and therefore entitled to claim MATERNITY ALLOWANCE which is administered by the Jobcentre.
http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits/Dev_008115.xml.html

It isn't subject to tax or national insurance nor are there any limits on savings that you may have, as it is based upon your income.

You need to claim it as soon as you are 26 weeks pregnant, otherwise you will lose money. Clearly you must have made the decision to take redundancy at this time and provide evidence of your ineligibility for Statutory Maternity Pay which is paid by your employer.

If you do not choose to take the severance then what are the options open to you? Compulsory redundancy? If not, then they have no choice but to pay your maternity pay.

A-Wing

you could claim council tax benefit based on your earnings, but be aware that the upper capital limit is £16,000 and a tariff income will be used for any balance between £6000 and £16,000. I'm not sure whether you'd qualify now as I don't know your circumstances (I'm a Housing Benefit officer in North Wales), but give your local council a ring and ask them as you may once the baby is born.

lynzpower

job seeekers allowance also pays out if you have contributd enough- up to 16k savings.

Prudent

I guess you need to work out how much you would be entitled to in maternity pay first. Also are you intending going back to work? And how easy would it be to find another job with the same salary/conditions?

clairec79

I think you'd be entitled for them to pay you maternity pay anyhow. I seem to remember a woman coming in who'd been made redundent at 32 weeks and her old company HAD to pay her her maternity leave (she didn't want to take it till 37 weeks and it was messing up other benefits, we couldn't pay because they had to - this was about 2 years ago, but I don't think it's changed, if you would qualify for maternity pay off them (so been working there long enough) and are still working at 29 (?) weeks then even making you redundent doesn't stop it.

Contact CAB to make sure though (otherwise you'd get MA)