Benefits and Redundancy pay out

Spoonie_Turtle

united4ever said:

£631 is a threshold then? If wife earns more than that we would receive less? My wife is on a contract and is negotiating the next one so this is relevant.

Yes, earnings up to the work allowance are ignored.  Above that, 55% of the earnings will be deducted from the UC payment.  (Used to be 63%.)  If you didn't have children you wouldn't get the work allowance.

Please make sure to do benefits calculations with details based on different scenarios - and remember to add those benefit amounts to the earnings amounts to get an accurate comparison of overall income in those scenarios.  No point needlessly passing up income in case benefits are reduced; your overall income would still be higher, and you do have to think about the long-term effect for your wife's future pay prospects, as you're anticipating that needing benefits will be temporary.

For you, based on the information given so far the maximum UC would consist of the couple allowance and two child elements, 
£578.82 + £315 + £269.58 = £1163.40 per month
[Then the JSA amount deducted in full, so no overall financial benefit to claiming it but it pays class 1 NI credits whereas UC pays class 3.  And any deductions for savings over £6,000.]

TELLIT01

HillStreetBlues said:

I don't think you can claim JSA in advance, but stand to be corrected.
You will need to wait till 1st June before you apply.

I'll admit I'm not  sure, but assumed an application could be made in advance because you can't backdate it.  If you can't claim in advance or backdate it would mean you have to make the application on the day after you job ends or you will lose out.

HillStreetBlues

TELLIT01 said:

I'll admit I'm not  sure, but assumed an application could be made in advance because you can't backdate it.  If you can't claim in advance or backdate it would mean you have to make the application on the day after you job ends or you will lose out.

I know for certain (I learnt it on here)  that you can not claim UC in advance, so would expect JSA to be the same.

EDIT
Just checked on-line  and you can't put a forward date when you start a claim, only todays  or past date.

united4ever

Thanks all. On 28th June when the money hits my bank account if I transfer as mortgage lump sum overpayment on the same day will this be picked up by benefits office also when I apply will they ask me if I will be getting a redundancy payout and is it alright to just say 'yes but I am going to use it to overpay my mortgage'. Obviously it must be legal but wondering are they going to be asking me about it.

HillStreetBlues

united4ever said:

Thanks all. On 28th June when the money hits my bank account if I transfer as mortgage lump sum overpayment on the same day will this be picked up by benefits office also when I apply will they ask me if I will be getting a redundancy payout and is it alright to just say 'yes but I am going to use it to overpay my mortgage'. Obviously it must be legal but wondering are they going to be asking me about it.

Make sure you apply on 1st June  for   so you assessment period will run 1st of every month to the last day of every month for UC.
If they do ask tell them yes you will get  redundancy but this will be used to pay mortgage.
Redundancy is classed as capital so as long as all capital in under £6k on the 30th June  then you will have nothing to declare.
So you wil have the 28th & 29th June to get payment sorted.

Spoonie_Turtle

TELLIT01 said:

HillStreetBlues said:

I don't think you can claim JSA in advance, but stand to be corrected.
You will need to wait till 1st June before you apply.

I'll admit I'm not  sure, but assumed an application could be made in advance because you can't backdate it.  If you can't claim in advance or backdate it would mean you have to make the application on the day after you job ends or you will lose out.

You only lose out if you find a job before the 6 months of JSA would end.  But JSA is a fixed term benefit, whenever you apply you can only get the 26 weeks of it so applying on the day you're no longer employed, or afterwards, makes no difference there.
Unless I'm missing/forgetting something.