Redundancy - How is PILON effected specifically by a new job on lower wages

benwilson

My employer went into liquidation and we were all made redundant with immediate effect. I was very fortunate in being able to find a new job almost immediately and started work at my new employer just 12 days later. My question is on how this will effect statutory PILON from the RPO.

I know it's mentioned that "If you start a new job we must also deduct the value of any wages you’ve earned during this period" (as well as any benefits I was entitled to in the interim period), but I've also seen it referred to as being intended as compensation for losses endured due to the redundancy. Does anyone know for certain how they apply this calculation? With regular overtime I was previously earning around 50% more than my current starting salary (no paid overtime on probation period either), and it's probably irrelevant but I've got a commute now and had to buy a car so my actual short term 'losses' due to the redundancy far exceed any cap. Even so, I know I'm lucky to have found a job so quickly in the current climate, and that's why I snapped their hand off rather than asking them to hold the job open for 3 months while I lazed around doing nothing on free PILON money.

So, is it;
a) just a simple case of "You used to earn £800/week, that's capped to £538. You earned £500/week, here's the remaining £38 of the capped entitlement"
b) a more loss-based case of "You used to earn £800/week, but you earned £500/week, so here's the £300 difference"

Thanks in advance