Redundancy and SMP

Babymomma

I am currently 33 weeks pregnant and have taken voluntary redundancy at work. They have paid me my SMP in one lump sum rather than monthly which I requested. I eas just wondering from others experiences did anyone still recieve help from universal credit? My SMP will have to last me 39 weeks but I'm worried the job centre will see this as savings and I have rent to pay for. Also, whether I am classed as still working as I am not able to look for work until the 39 weeks is up or I have to pay my SMP back. I do have a meeting with the job centre but just wanted to see what others experiences are. I am single so it will just be my income.

TELLIT01

I believe it will be classed as income at the weekly rate until the end of the 39 weeks.

pmlindyloo

TELLIT01 wrote: »

I believe it will be classed as income at the weekly rate until the end of the 39 weeks.

I am not sure that this is what will happen.

Will the OP be affected by surplus earnings? SMP is counted
as earnings.

https://www.gov.uk/universal-credit/how-your-earnings-affect-your-payments

Since we do not know about the OP's circumstances it is probably best that she contacts the Universal Credit helpline and ask how this would affect a claim for UC.

I do not know when completing the application whether there is a section about this or not. Anyone?

pmlindyloo

Universal Credit helpline here:

https://www.gov.uk/universal-credit/how-to-claim

Spoonie_Turtle

They ask you about how much money you have in total, in your bank accounts, savings, etc. Unless it's over £6000 it doesn't affect benefits entitlement, and if it's between £6000-16000 they take off a small amount each week for each £250 you're over £6000.

Probably the best thing to do is a benefit calculation https://www.entitledto.co.uk/

Surplus earnings only count if you're already claiming, I think. https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/universal-credit-and-work/

calcotti

I agree with sponge that surplus earnings rule will not apply to earnings received prior to claiming UC if this is the first claim. I also think the money already in the bank will be treated as capital so, again as spoonie says, will have no impact unless total capital is over £6,000.

OP, it may be helpful to others if you post back in due course and let us know what actually happens.

Rubyroobs

Could it be seen as intentionally making yourself jobless ? I'm not sure.

huckster

As others have said, first thing that will come into play is savings. You have to declare savings £6000 or more and provide Bank statements etc. If it is recent SMP paid as a lump sum, they can ignore for a period, as it is recent earnings.

Next thing that will come into play is surplus earnings, as I expect the earnings will exceed any UC entitlements. So depending on amount of SMP paid, it could be a few months before any UC payments becomes due.

If your savings still exceed £6000 beyond any time they allow for the SMP to be ignored, then they will want to know amount. For each £250 above the £6000, they deduct £4.35.

It would have been easier if you had waited for the SMP to be reported by the employers to HMRC, before you claimed UC. Then you don't have the SMP appearing on a HMRC earnings feed that UC receives. Therefore surplus earnings should not be relevant and it is just a case of how long UC would ignore the SMP as part of your savings.

huckster

Rubyroobs wrote: »

Could it be seen as intentionally making yourself jobless ? I'm not sure.

No, they would be OK as they are leaving work, while pregnant as part of a redundancy offer.

calcotti

Rubyroobs wrote: »

Could it be seen as intentionally making yourself jobless ? I'm not sure.

Voluntary redundancy is specifically excluded from being treated as intentionally giving up work.

ADM K3251 The DM should treat the claimant as not having left employment voluntarily where
1. the claimant
1.1 volunteered or agreed to be made redundant and
1.2 either
1.2.a was dismissed by the employer or
1.2.b was not dismissed but left on a date agreed with the employer following an agreement on voluntary redundancy or
2. the claimant had been laid off or on short-time for four weeks or six weeks out of 13 and asked the employer for a redundancy payment

calcotti

huckster wrote: »

It would have been easier if you had waited for the SMP to be reported by the employers to HMRC, before you claimed UC. Then you don't have the SMP appearing on a HMRC earnings feed that UC receives. Therefore surplus earnings should not be relevant and it is just a case of how long UC would ignore the SMP as part of your savings.

I had read it as the OP receiving the SMP before claiming UC but reading again it could be, as you have read it, that SMP has been paid in one lump sum following the UC claim. In this case surplus earnings rule will apply. My instinct is that because of the current £2,500 monthly disregard the OP, even if they have zero entitlement for a month or more, will end up with more UC overall than if SMP had been paid over a longer period. Can’t be sure without more information.