Pilon and Redundancy Pay with Universal Credit

davecarr2000

Hi,

I'm currently facing redundancy and will be receiving redundancy of about £21,000 and Pilon of £7000.
That does take us over the £16,000 capital limit, and also probably surplus earnings.

Does anyone know if the claim would just terminate, and we would need to reapply at some point in the future, or does the claim go on hold while we use up the capital, and if so does it reduce the capital each month by the amount that we would be deemed to be entitled to, if we didn't have the capital.
I'm looking at the regulation 50 for nominal capital, however that seems to be only for people who have spent the capital, and shouldn't have, and is potentially fraudulent, but then why have a clause that deals with a fraudulent activity, and talk about when they can receive the benefit again.

Thanks

tacpot12

The claim would terminate, but can be reopened within six months. If you can get below £16,000 in six months, you can reopen the claim. You should keep the same assessment period and payment dates. 

Obviously you need to be careful about any suggestion that you have deliberately deprived yourself of the capital by spending it ways that aren't reasonable under your circumstances. I've not seen this discussed anywhere, but I would expect that the DWP would expect you to claim JSA if you are entitled to it and looking for work, rather than live off the redundancy payment to use it up more quickly.  

davecarr2000

I'm hoping to have a job by then. My last day will be 31/12, then my Pilon will start which will be 12 weeks.

Just had a quick look at JSA, I didn't realise I would be able to claim it as savings don't affect it.
I actually thought I would be able to claim 0, hence living off the redundancy.

Looking at JSA it's £400 a month.
That's a massive drop to what I get each month, and our UC payment, I reckon it would go quick at that rate, hopefully i get a job.

Thanks for your reply.