Redundancy pay, debts and available benefits?

Monkeyballs

Hi all,

I'm in a position whereby my employer has announced that there are job cuts imminent but not specified where at this point in time as they still need to assess the areas in which they can stand to take cuts in their workforce.

This got me wondering, I have debts which I am currently in the process of discussing and setting up a DMP with Step Change.

The total redundancy pay out I would get is around about enough to pay off my debts... Is this a good idea?

I am totally clueless about all of this and would appreciate any help on the matter - would my redundancy pay impact the benefits I would be entitled to as I go about trying to find new employment for example?

I'm not stressing it too much as I know that if the worst happens then my debts are gone and I can crash at my parents but I don't want to make any silly mistakes and make myself more strife than necessary?

Thanks, MB

mcfisco

Monkeyballs wrote: »

The total redundancy pay out I would get is around about enough to pay off my debts... Is this a good idea?

You need to prioritise keeping you and your family warm, fed and sheltered.
If paying off debts means you'll struggle to do that, let the creditors wait

saintjammyswine

Cant help on benefits but you would be able to access Skills Supoprt for Redundancy funding to help with (re)training to help you return to work if required. Available through most local FE Colleges.

anamenottaken

If you used your redundancy payout to pay off debts which did not have to be paid off at that point (eg because you had a repayment plan in place), then it could be seen as deprivation of assets if you needed to claim income based benefits.

Monkeyballs

Hi St.JS,

Thanks for the info, fingers crossed it won't happen but it doesn't hurt to get a bit of guidance...

Im no stranger to redundancy but in the past Ive always been able to get another job quite quickly as Ill have a go at anything :-)

Difference this time is that my employer has a good redundancy package and would like to use any monies received wisely...

If it comes to it, Ill take anything again and juat work upwards!

Thanks again, MB

saintjammyswine

Monkeyballs wrote: »

Hi St.JS,

Thanks for the info, fingers crossed it won't happen but it doesn't hurt to get a bit of guidance...

Im no stranger to redundancy but in the past Ive always been able to get another job quite quickly as Ill have a go at anything :-)

Difference this time is that my employer has a good redundancy package and would like to use any monies received wisely...

If it comes to it, Ill take anything again and juat work upwards!

Thanks again, MB

It is also for people who are 'at risk' not just those who have been made redundant.