Redundancy and JSA

Shirazmerlot

I'm being made redundant as of 6 Sept, does anyone know if I am entitled to JSA straightaway or do I have to live on my redundancy for the 4 months (enhanced package) my employer is paying me? I've had conflicting advice from people. I have a small amount of mortgage debt which I was going to use the redundancy to clear but not if it means I have nothing else to live on. Have applied for 57 jobs since I was notified of redundancy but no luck a yet!

HappyMJ

Shirazmerlot wrote: »

I'm being made redundant as of 6 Sept, does anyone know if I am entitled to JSA straightaway or do I have to live on my redundancy for the 4 months (enhanced package) my employer is paying me? I've had conflicting advice from people. I have a small amount of mortgage debt which I was going to use the redundancy to clear but not if it means I have nothing else to live on. Have applied for 57 jobs since I was notified of redundancy but no luck a yet!

If you are looking for work you apply straight away...well the last day of work anyway. You will at the very least get credit for NI contributions. If they do pay you contributions based JSA then you can pay off your mortgage but if you do not find a job within 6 months this may affect your eligibility for income based JSA. You can continue to make your mortgage payments for the next 6 months so paying them all upfront may save you a little bit of interest.

LittleVoice

Other than the waiting days, you would be eligible for JSA straight away.

One is usually advised not to use redundancy pay to pay off debts which do not have to be paid as this can be seen as deliberately depriving yourself of assets which otherwise could affect your eligibility for income based JSA (the sort payable if you have not found work after 6 months of contribution based JSA). You should simply continue to pay your mortgage as normal.

Linda32

Yes, you will be able to get JSA. The first six months is called contribution based Job Seekers Allowance and is paid from the last two years NI Contributions that you have paid.