Will my redundancy affect my Carer's Allowance payments?

lcs14 Forumite Posts: 11
First Anniversary First Post
edited 21 July at 9:22AM in Benefits & tax credits
I am a carer for a family member and since earlier this year (February) I have been claiming Carer's Allowance, paid weekly.

Until early June, I also had a part time job working 8-10 hours a week, but I was made redundant from that.

I am due to get a redundancy payment. It's not much as I was only working those 8-10 hours a week, but it's still a lump sum of £2,500 that is to be paid along with my final monthly worked hours pay of £340.00 on the same day. These amounts are both shown on my payslip.

My worked hours have never affected my CA before as it's always been an average of £300-£350 per month I've earned, so under the weekly threshold cap. But now I am being paid my redundancy with this pay, will this stop my weekly Carer's Allowance payments? And if so, for how many weeks will it be stopped?


  • Alice_Holt
    Alice_Holt Forumite Posts: 5,608
    Eighth Anniversary 1,000 Posts Name Dropper
    edited 21 July at 5:42PM
    Redundancy payments do not constitute "earnings", so your CA should be unaffected by this payment.


    See page 8; para 10,2.

    And https://www.legislation.gov.uk/uksi/1996/2745/made

    "9.—(1) Subject to paragraphs (2) and (3), “earnings”, in the case of employment as an employed earner, means any remuneration or profit derived from that employment and includes—

    (a)any bonus or commission;

    (b) any payment in lieu of remuneration except any periodic sum paid to a claimant on account of the termination of his employment by reason of redundancy;"

    I'd suggest explaining the payment to CA in a letter enclosing a copy of your payslip which distinguishes between your earnings and the redundancy payment. 

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