Redundancy and Employment Support Allowance

unbrandedentity

This is a bit complicated, so first here are the facts...

I am employed, but claiming Employment Support Allowance (ESA) at the same time (see below for how this is possible). I am in the ESA Support Group for people with disabilities and those unable to work. My employer is making me redundant and I will receive a payment of somewhere between one and two thousand pounds. Does any one know if this will affect the ESA payments I receive?

More information:

I have not worked for about a year due to a permanent disability which occurred last year. I was receiving Statutory Sick Pay (SSP) for the first 6 months. After six months employers can stop paying SSP so I started claiming ESA, even though I am technically still employed. My employers are now making me redundant.

Any advice on this would be appreciated as I don't want my benefits to be affected by receiving a redundancy payout.

getmore4less

HOw long have you worked there

What is the company notice to you.

They may need to pay full pay during/for the notice period.

Also accrued unuesd holiday as it accrues during sick.


can't comment on the ESA

Undervalued

First of all are you sure you are being made redundant? Technically it is a post that is redundant, not a person. Obviously it is possible the post has become redundant whilst you have been sick but otherwise you are being dismissed on capability (i.e health) grounds. This may or may not come with some compensation via a settlement (formally a compromise) agreement.

If you are getting contribution based ESA then it will not be affected by any redundancy or settlement payment as this is compensation for losing your job.

However, if you receive any payment in lieu of notice (you might, this is complex when off sick but under some circumstances is payable even when sick pay has run out) and / or holiday pay then this could affect ESA for those months. You would need to check this carefully.

If any or all of your ESA is income based and if the redundancy or settlement payment increased your capital over a certain figure, this could affect your eligibility.

I'm afraid I'm too out of date to know the current figures. You might try asking this on the benefits board or alternatively you local CAB.

unbrandedentity

Yes I am being made redundant. My employers informed me yesterday that they would be getting back to me with a figure.

I'm not sure whether my ESA is contribution based or not. I didn't know there was more than one type. Is there a way to work out which I get?

Also I have posted this on the Benefits forum, so I may get some answers there.

I will also contact my local CAB office; good idea. Thanks.

unbrandedentity

I read through the documents the DWP sent me and I am on Contribution based ESA.

unbrandedentity

Just to follow up. I contacted Citizen's Advice who told me that as I am in the Support Group my ESA is not means tested and my benefits will not be affected.

Thanks to those who replied to this post.

jobbingmusician

Thank you for your helpful contribution, and for coming back to us with a definitive answer!