Should I take voluntary redundancy or stop?

Mr_Benji

Hi all,

I need help!

Ok so I have worked for my employer for 9 years as a warehouse op. we are moving to a new multi million pound depot which is 3 miles closer to home. We have all been offered voluntary redundancy and mine works out at £19,000. Now my current salary is £25,000 so decent really for current climate although I do work nights.
I can move to the new depot and have a opportunity to drive for the company on days for £28,000.
The dilemma is this, I have a secure loan on the house with 3 years left and have a figure of £7000 to write this off. I also have a iva with 4 years left and have a guided figure of £7500 to write the dept off.
Do I take the money and pay these off and be dept free for the first time ever! ( other than low mortgage and normal household bills) or stop with the company where I have a secure well paid job and good pension?

I'm pulling my hair out with this please help me make a decision

marlot

The £19k is only a benefit to you if you think you can find a new job within a few weeks or so. Otherwise you'll need the money to pay your household bills.

Don't forget that if you think you may qualify for mean tested job seekers allowance, you won't be allowed to claim if you've used the VR to settle your debts - you're expected to live off the money instead.

So I'd recommend having a good look at the local job market. If you think you can find another decent job then the VR may be worth taking.

Okydoky25

When I accepted voluntary redundancy I was not even asked my settlement figure when making a JSA claim. They don't/ didn't take it into consideration at all.

However IMO stick with the job

Mr_Benji

It's a real tricky one, my partner also works but her wage would just fall short of the monthly out goings.
I do have about 3 months until the date of VR and I can change my mind at anytime.

warwicktiger

If you have 3 months to decide, find a job first?

If no job then keep yours

Mr_Benji

warwicktiger wrote: »

If you have 3 months to decide, find a job first?

If no job then keep yours

Unable to take VR for 3 months and not before. Probably pointless looking until around 1 month to go.

Also have to mention I am 30 years old with 2 kids

Angela

The other thing to think of is are you happy with your employers and the people you work with that may have some bearing on the matter.
You may go somewhere new and be unhappy.
Money isn't everthing

marlot

Okydoky25 wrote: »

When I accepted voluntary redundancy I was not even asked my settlement figure when making a JSA claim. They don't/ didn't take it into consideration at all.

However IMO stick with the job

You were probably applying for contribution-based JSA. That's fine, but only payable for six months @ £72 per week.

Accessing any of the means-tested benefits requires declaration of savings. And deliberately depleting the savings can be a problem.

TTC40

As others have said, can you get another job on the same money?

I would hazard a guess that in the current climate, it would take some time to get a job with reasonable hours, close to home, low skilled & earning £28k per year (and maybe the chance for extra earnings with overtime?).

If you can meet your outgoings on your current earnings, you could use the additional pay each week/ month to overpay debts & get rid of them quickly.

So, test the local employment market & that should help you make a choice.

As an aside, not sure how/ why the company are considering paying redundancy when they still have the need for people in a similar location with similar skills.

itch_for_a_glitch

Roll forward three years.
On £28k all those debts could be gone (effort required) and you still have a decent paynig job.
Take the VR - debts gone straight away and a possibility of (after three years) starting to build them up again.
I was in a similar situation twenty years ago, stick with it and take VR later so you can finish work altogether.

getmore4less

One thing to consider is will the company offer similar packages in the future.

Some make it obvious this is the last chance future will be lower.

you also need to know the policy on getting the package if you get a job quickly.

I think I would err towards staying if the company is a good one and try to get on top of the finances