confused about benefits

LeiLeiMusic

Hi ya,
I posted this on the redundancy board and was advised to post it on the benefits board as no one really knew the answer so apologies if I am still posting in the wrong place

I am being made redundant. _pale_ 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.

BrettMorganxD

LeiLeiMusic wrote: »

Hi ya,
I posted this on the redundancy board and was advised to post it on the benefits board as no one really knew the answer so apologies if I am still posting in the wrong place

I am being made redundant. _pale_ 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.

it is true that if you have over £16,000 you will not get any benefit.

As for the reclaiming at a later date, im not 100% but I would (personally) judge it on the circumstances.

Lets say, for example.

A sensible person receives that £20,000, they could make this last a year or more. Then you should beable to receive the benefits again once it runs out

Lets say a not so sensible person gets this. They could go straight out and buy a £18,000 car/holiday home whatever. Then the remaining £2,000 wouldn't be counted because it is below £6,000. But I do not think the benefits office will be leniant.

So I think they will judge it.

By the way if you did the second one I think you can be sanctioned for "depriving yourself"

LeiLeiMusic

Thank you for your answer. This is very helpful and I really appreciate your information. Thank you.

BrettMorganxD

LeiLeiMusic wrote: »

Thank you for your answer. This is very helpful and I really appreciate your information. Thank you.

Your most welcome.

Basically if you use the money wisley and make it last I would say (but not too sure) a year. Then they should let you reclaim, because it probably can cost £20,000 in one year if you have childrend and have to pay full rent/mortgage

BrettMorganxD

Forgot to add. If you have been working for the last 2 tax years in a row, you may qualify for contribution based JSA for 182 days, which is not affected by savings

sleepless_saver

Your working tax credit will stop if you're not working, but you will still get child tax credit even with the £20k redundancy pot.

You should sign on for jobseekers allowance and if you have paid enough contributions you will get that.

You'll need to notify the tax credits people and the local authority. You don't need to wait till all your money has gone before you reapply for housing benefit. Apply when your savings are down below £16k.

And don't just pay off the debts. You could end up being treated as if you still had the money. To be on the safe side, the best time to do it would be after you start in a new job.