Confused about benefits

LeiLeiMusic

Hi,
I am being made redundant. My last day will be 31 Jan 2012 as I have to work my notice. I have been told I will get £20k tax free. I will also receive a taxable bonus of circa £5k.

I currently receive some housing benefit and also working tax and child tax credits. I will have to declare that I have received this money and I suspect all my benefits will stop.

Am I right in thinking that I can make a new claim at a later date once my redundancy money has gone and I am working again?

I will be using my redundancy money to live off until I find a new job. I will pay off as much of my debt as I can. Once all the money is gone can I submit a new claim based on the new salary and no savings?

I think I read somewhere that when you have over £16k in savings you do not get anything (fair enough i say!!) so my benefits will completely cease on receipt of my redundancy payout. Is that correct?

Any help would be greatly appreciated!!

Thank you.

SarEl

I am not a benefits expert and you may find the benefits board more useful for this question - but do not pay off debts until you are certain of the advice you get. You will be entitled to JSA (contributions based) for six months because it doesn't take into account any capital - but some benfits can penalise you if you have capital and spend it! So you do not want to get four or five months down the road and find that paying off your debts or whatever means that you can't claim because you are treated as still having the money, but don't have it because you spent it!

LeiLeiMusic

Thank you so much! On your advice I have posted on the benefits board too. Thank you again x