Redundancy payment

I phoned up the UC helpline but they didn't help me with this they told me they weren't sure. Useless!

Does my redundancy payment affect my universal credits? Thank you.

Comments

  • sammyjammy
    sammyjammy Posts: 7,892 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 2 September 2022 at 3:05PM
    Yes it will impact your payment in the claim period it is received

    My apologies, Poppy12345 corrected me that it will be classed as capital/savings
    "You've been reading SOS when it's just your clock reading 5:05 "
  • Yes it will impact your payment in the claim period it is received
    Thank you. So it's only that payment it affects and not any future payments? It means I'll see a little bit of it, perhaps half if I'm lucky.

    A bit shocking really that the bloke on the phone didn't know after he put me on hold.
  • poppy12345
    poppy12345 Posts: 18,878 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper
    Yes it will impact your payment in the claim period it is received

    The redundancy pay will be classed as savings, not earnings. If this bring the total savings to more than £16,000 then entitlemet to all means tested benefits will end.
    Pay in lieu and holiday pay will be classed as earnings.

    A bit shocking really that the bloke on the phone didn't know after he put me on hold.

    Not at all. They are call centre staff, not benefits advisors. They should be the last people to ask for advice from.
  • Yes it will impact your payment in the claim period it is received

    The redundancy pay will be classed as savings, not earnings. If this bring the total savings to more than £16,000 then entitlemet to all means tested benefits will end.
    Pay in lieu and holiday pay will be classed as earnings.
    The redundancy will be £3800 and my savings is only £500 so under any caps. Thank you.

    A bit shocking really that the bloke on the phone didn't know after he put me on hold.

    Not at all. They are call centre staff, not benefits advisors. They should be the last people to ask for advice from.
    Oh ok. I was told in my identity check appointment for UC that the helpline would help with any queries I had so I assumed they could advise on stuff like this. I hadn't realised they had not been trained in this area. Cheers.
  • Alice_Holt
    Alice_Holt Posts: 6,094 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper

    Oh ok. I was told in my identity check appointment for UC that the helpline would help with any queries I had so I assumed they could advise on stuff like this. I hadn't realised they had not been trained in this area. Cheers.
          This confirms poppy's advice:
           https://ucnotes.co.uk/universal-credit-home-page/im-working-menu/what-if-i-finish-work/

         I would start with an internet search rather than asking the UC call-handlers.
     Your local advice charity can be a useful source of information, and offer a potential check on the veracity of poorly trained DWP staff statements.  
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
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