Redundancy

dman1967

Hi, I have had to take VER & will get a small VER payment, so with current savings put me just under the benefits £16000 cap.
I will need to get a car as my works 1 is going back, being told my VER will be taken into account when making a claim?
So could I buy a car on fiance or a credit card & pay it off with my VER payment? 
I really can't believe they would make me live off my redundancy payment!

Alistair31

Is the £16k cap being checked in these times? 

eskbanker

dman1967 said:

I really can't believe they would make me live off my redundancy payment!

'They' aren't really looking at anything from that perspective - it's just a simple rule applied evenly and fairly to all that says that certain means-tested benefits are affected by savings over a specified threshold, so it's hard to argue that the taxpayer should be expected to shoulder more of the burden than necessary for those who have their own assets, regardless of where those came from....

DiggerUK

Can I assume you volunteered to go. If so it seems you didn't work it through as diligently as you could have. 

Not the end of the world, welcome to benefit Britain......not the land of milk 'n  honey. With savings of £16k you will not get any payment, under £6k you would be entitled. It is then graduated to the cut off point of £16k per household. You will get pension credit and possibly some allowances, but that's it.

If you need a car and have the cash why take out a loan? best to just buy it outright. 

What do you mean by "works 1" do you have another job to go back to..._

bigadaj

It's likely that the OP would qualify for contributions based jobseekers for six months which isn't affected by savings.

6022tivo

Slight hijack of the thread.. 

I understand severance pay / redundancy is free of Tax and NI? Is this right, Is there a max?

Thrugelmir

6022tivo said:

Slight hijack of the thread.. 

I understand severance pay / redundancy is free of Tax and NI? Is this right, Is there a max?

Up to £30k. 

eskbanker

6022tivo said:

Slight hijack of the thread.. 

I understand severance pay / redundancy is free of Tax and NI? Is this right, Is there a max?

No tax up to £30K: https://www.gov.uk/redundancy-your-rights/redundancy-pay

Geordieb

If i am awaiting my 12 weeks severance pay, why do i have to pay JSA payments back and my 6 months JSA starts from the date i was made redundant