Being Made Redundant

Sevs66

Hi
My wife has just been informed she is being made redundant as a direct result of Coronavirus forcing the business she works for to close. It looks like she will not get any pay this month at all as the owner starts proceedings to close and redundancy is sorted officially. Will she be entitled to this months salary on top of her notice period pay and redundancy or does it come out of that package. Plus, having never been in this situation previously we'd like to know what's best to do next regarding claiming income support if she doesn't find immediate employment. All advice welcome

Thanks

Mrsn

Have a look at one of the benefit entitlement calculators such as entitled to or turn2us and they will let you know what you might be eligible to receive.

Anything she has currently worked up until this date, notice pay and any any remaining holiday entitlement she has will be due to her. If there’s no money in the business to pay this then the government will cover the amount due to her. It can take a little while for that money to come through but she will get it.

poppy12345

New style JSA maybe possible providing she's paid the correct amount of NI contributions in tax years April 2017 to March 2019. It payd £74.35 per week (over 25's) for 26 weeks. https://www.gov.uk/guidance/new-style-jobseekers-allowance

Universal Credit maybe possible but it will depend on household income. You will need to claim as a couple because it's a means tested benefit. Savings/capital of £16,000 and over will exclude you from claiming.

A claim for UC will end any tax credits you may already be claiming.

If you do start a claim for UC then i'd advise you to wait until she's received her last pay from her employer because earnings received during your assessment period will reduce the amount of UC you're entitled to.

New style JSA amount will be deducted £1 for £1 from any UC entitlement if claimed together.

A benefit calculator will help.

Sevs66

Mrsn said:

Have a look at one of the benefit entitlement calculators such as entitled to or turn2us and they will let you know what you might be eligible to receive.

Anything she has currently worked up until this date, notice pay and any any remaining holiday entitlement she has will be due to her. If there’s no money in the business to pay this then the government will cover the amount due to her. It can take a little while for that money to come through but she will get it.

Thanks, will do. We were just concerned that as I'm working and earning she wouldn't be entitled to anything in terms of benefits. The Gov't usually has some get out of jail free clause to play

Sevs66

poppy12345 said:

New style JSA maybe possible providing she's paid the correct amount of NI contributions in tax years April 2017 to March 2019. It payd £74.35 per week (over 25's) for 26 weeks. https://www.gov.uk/guidance/new-style-jobseekers-allowance

Universal Credit maybe possible but it will depend on household income. You will need to claim as a couple because it's a means tested benefit. Savings/capital of £16,000 and over will exclude you from claiming.

A claim for UC will end any tax credits you may already be claiming.

If you do start a claim for UC then i'd advise you to wait until she's received her last pay from her employer because earnings received during your assessment period will reduce the amount of UC you're entitled to.

New style JSA amount will be deducted £1 for £1 from any UC entitlement if claimed together.

A benefit calculator will help.

Thanks
She won't get UC as my earnings have always come into effect when claiming other benefits such as WTC or CTC in the past

daveyjp

Sevs66 said:

Mrsn said:

Have a look at one of the benefit entitlement calculators such as entitled to or turn2us and they will let you know what you might be eligible to receive.

Anything she has currently worked up until this date, notice pay and any any remaining holiday entitlement she has will be due to her. If there’s no money in the business to pay this then the government will cover the amount due to her. It can take a little while for that money to come through but she will get it.

Thanks, will do. We were just concerned that as I'm working and earning she wouldn't be entitled to anything in terms of benefits. The Gov't usually has some get out of jail free clause to play

JSA is based on an individual's NI contrbutions and disregards any savings etc. 

poppy12345

Use a benefits calculator to check entitlement to UC. Some people who weren't entitled to tax credits are entitled to UC because it's based on earnings received during a monthly assessment period and not annual earnings. If not then it's New style JSA, see link above.