Jobseekers Allowance and Redundancy Payment

NoSpin

Hi

I'm being made redundant at the end of the month and need to claim Jobseekers Allowance so I qualify for Cover My Payments from Payplan. I really need to get the Cover My Payments payments as they're worth #500 pounds per month and will keep the creditors at bay whilst I retrain and look for work.

I've been in full time employment for the last 8 years and paid all my National Insurance contributions, so I should qualify for 'contribution-based Jobseeker's Allowance' but I'm worried that as my redundancy payment will be (not much more) more than #16,000 pounds that I won't qualify.

As I'm applying for 'contribution-based Jobseeker's Allowance' rather that 'income-based Jobseeker's Allowance' will my redundancy money be an issue?

Any helpful thoughts on this would be greatly appreciated.

NoSpin

wombles_forever

Hi, providing you have paid enough NI contributions for 'contribution-based Jobseeker's Allowance' then you will be fine as CJSA is not means tested at all for the 26 weeks at is paid for.

If your unemployment lasts longer than this then you will be assessed for 'income based JSA' and only then will any savings or partners income be taken into account.

Hope this helps puts your mind at ease.