Accept redundancy or go for reduced hours?

lowriful

Looks like the company my partner is working for is in trouble. (Not a big surprise).

Late last night, the boss said to my other half, informally and in confidence, that most of the staff will be made redundant, with a skeleton staff kept on for now.

I think the boss is hoping to save it from going under. Not sure how he's going to manage to pull that one off though. Think we have to assume if my partner does get kept on, the company could fold in the coming months anyway ...

The boss said he's is probably going to be offered 1 day's work (commuting to London) and just a few hours working from home.

I work 16 hours a week, in a job which is on paper is great for my CV, but not much more than minimum wage. My contract is until the end of September, I'm hoping to renew it but I have no idea if there's any chance of that, it was only meant to be a short project. We have two young children (1 and 5).

We need 24 hours between us to claim tax credits, that's right isn't it?

So if he takes say 10 hours a week, then what happens if I lose my job in September and don't find anything new? Am I right in thinking we'll lose tax credits, but not be able to claim anything else while I'm working? He won't be able to just leave his job will he, as you can't just leave your job and then sign on these days can you?

But if he accepts redundancy, then what? We'll lose tax credits won't we? Will he be eligible for JSA if I'm working 16 hours? Or will we all have to live on my income till one of us finds more work?

Work are probably going to put it on the table next week.
I'd really appreciate any advice. Thanks

lowriful

Thanks, that's good to know.

Does anyone know, what happens if he takes redundancy? Will he be able to claim JSA while looking for work, with me working 16 hours (and sometimes a bit more, maybe 18 hours)?

rogerblack

lowriful wrote: »

Thanks, that's good to know.

Does anyone know, what happens if he takes redundancy? Will he be able to claim JSA while looking for work, with me working 16 hours (and sometimes a bit more, maybe 18 hours)?

Assuming for the moment that he has been working as an employed earner in tax years 2011/12 12/13, and earned significantly in both of those years - he will likely be entitled to JSA contributory-based.
This will last for 6 months, at which time he falls back onto income-based.
At 16/18 hours even on the minimum wage, your earnings as a couple are too high to get much/any JSA(IR).

On another topic - if he resigns, he cannot claim JSA normally. But - redundancy is very different, and there is no problem claiming JSA, after even voulentary redundancy.

lowriful

Thanks for the reply.

He wasn't working at all in 2011-13, he was a full time (mature) student. This is is first job since graduating.

He was self-employed before that and I believe he owes some money for NI contributions. Not sure how much (not a huge amount I shouldn't think) or whether that will be an issue?

rogerblack

lowriful wrote: »

Thanks for the reply.

He wasn't working at all in 2011-13, he was a full time (mature) student. This is is first job since graduating.

He will certainly then not be entitled to contributions based JSA.
His only entitlement to JSA will be income-based, which will be almost, or entirely eliminated by your contributions to the household.

lowriful

That's bad news. My salary is just over £500 a month. It doesn't even cover the bills, let alone food / my travel to work etc. If we lose his salary and Tax Credits, we're screwed.

!!!!.

My partner knew this could be on the cards and has been actively job hunting for a couple of months already. He's had one interview, no job offers.

lowriful

Ha, the site censored me. I though swearing in Father Ted language would be considered mild enough to be OK, but obviously not, oops!

Horseunderwater

You'll get a 4 week run on of WTC which may be 4 the full amount.

lowriful

We get £130 a week including WTC, basic CTC and also the childcare element of CTC.

Without the CTC I couldn't work. When my 1 year old is in childcare, I'm earning only £3.50 an hour more than we pay for childcare. But when both children are in childcare (like now, in the summer holidays) some days I'm actually paying £1.50 an hour to go to work, as the childminder costs more than I earn!

It's worth it to me though as that's not everyday (my 5 year old goes to a cheaper holiday club on the days I could get a place for him) and also it's a job which will be great for my CV, so hopefully lead to something better in time ...

lowriful

That figure will likely change when I tell WTC how much more I'm spending on childcare over the summer.

Oh well, at least we won't have to pay those fees from September I suppose! (childminder requires a month's notice to break contract).

lowriful

Horseunderwater that's good to know, thanks

That can cover the childminding fees then!