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Redundancy notice pay

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I was recently made redundant and have claimed my notice pay ( 3 weeks as I was employed for 3 years) when I was first made redundant universal credit gave me an emergency pandemic loan of 498.00. This is a loan and has started to be paid back . The redundancy company has deducted this 498.00 from my notice which basically equates to a years worth of notice which i worked hard for. Can they do this ?

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  • Comms69
    Comms69 Posts: 14,229 Forumite
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    Redundancy company? 
    Who is paying you??
  • lynzdav1
    lynzdav1 Posts: 8 Forumite
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    Claiming through the government ( sorry worded incorrectly )
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    lynzdav1 said:
    Claiming through the government ( sorry worded incorrectly )
    Then i would say that they will use part of that money to pay off the loan. Seems reasonable.
  • lynzdav1
    lynzdav1 Posts: 8 Forumite
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    They aren’t doing that though, I’m paying the loan back by direct debit 
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    lynzdav1 said:
    They aren’t doing that though, I’m paying the loan back by direct debit 
    Have you spoken to DWP and the insolvency service about this? I appreciate that sounds silly, but it doesnt make sense
  • lynzdav1
    lynzdav1 Posts: 8 Forumite
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    Is that not who is saying no? Sorry I’m really confused 
    universal credit who gave me the loan are saying nope, you are definitely paying it back to us which i totally get. They provided a loan so I pay back - fine
    i don’t understand why it needs to be deducted from my notice pay at all
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    lynzdav1 said:
    Is that not who is saying no? Sorry I’m really confused 
    universal credit who gave me the loan are saying nope, you are definitely paying it back to us which i totally get. They provided a loan so I pay back - fine
    i don’t understand why it needs to be deducted from my notice pay at all
    I mean - asked the insolvency service if this deduction will pay off the loan
  • lynzdav1
    lynzdav1 Posts: 8 Forumite
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    I’ll ask but in all their communication they’ve not stipulated that’s 
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