A little advice please....

Knight_Templar

I am due to take Voluntary redundancy very soon, infact in the next couple of weeks, it's very much a case of take a good package now, or wait 6 months when it will be compulsory redundancy at the government minimum.

The money I'm due to get will go a long way to paying off the debts that my wife and I have, some of which are to my family (a long running saga that has led to a break down in relationships), my concern is that as this money will be going to family will it go against me when it comes to claiming any benefits that I am due?

While I am trying to find another job in my area it is proving somewhat difficult and I fear that it will be some time before the right vacancy can be found...

Any and all helpful advice will be greatly appreciated. Thanks.

Lady_gaga

So if you wern't taking VR how would you be planning on servicing your debts? I think that's how they would look at it for benefit purposes, you can't pay more than you normally would have to to service a debt otherwise it could be seen as deprivation of capital.
I' m sure someone with a better knowledge of redundancy/savings and paying off debt will be along soon to advise.

Knight_Templar

At the moment I can service my debts using my current income, but as that's shortly coming to an abrupt end the redundancy pay off means I can all but clear ANY debt hanging over me... (no mortgage as I privatly rent, at the moment at least).

I borrowed money from my parents several years ago and have never been in a position to re-pay them, leading to lengthy arguments etc... now, for the first time, I'll be in a possition to do so... it's a heart and head situation... which of course the benefits people have no stake in... that's my dilema.

Lady_gaga

I don't think your allowed to pay off all of your debts and then claim means tested benefits, they would say you should just be paying them at the rate you normally would do.

would they only have your say so that you do indeed owe this money to your parents? I take it there was no formal agreement? I'm not being funny or saying your not telling the truth, but on this board there seems to be a lot of people who come into money, but all of a sudden have to pay back a debt to a family member, which would then rid them of all their cash and have to claim benefits, I think the DWP would also find this a bit suspicious

pmlindyloo

Hello again

Just had a couple of thoughts - have you got any PPI which covers redundancy for any of your debts?

You will be able to claim JSA (contribution based) as this is only dependent on your past NI contributions and not on any savings you have.

Lady_gaga

pmlindyloo wrote: »

Hello again

Just had a couple of thoughts - have you got any PPI which covers redundancy for any of your debts?

You will be able to claim JSA (contribution based) as this is only dependent on your past NI contributions and not on any savings you have.

does that cover voluntary redundancy?

pmlindyloo

Lady_gaga wrote: »

does that cover voluntary redundancy?

Mmmmm good point.

The OP would need to check the terms and conditions very carefully.