Redundancy payment and claiming benefits while unemployed

I have recently been made redundant. The money I receive for redundancy pay and shares (which I have been forced to sell as leaving the company) will take me to around 11k. I however am currently under the das scheme in Scotland and have outstanding debt of around 6k. Paying this money off is obviously important but it would leave me very low on savings to live on. I have two children and am single with a mortgage and there is no other income coming in. Would my savings bracket for claiming benefits take into account the full 11k or would they count my savings after this debt is paid off.


  • If claiming JSA you would get 6 months of contributions based benefit. And if you try hard, you may well find another job within that time. I assume your debts are non priority, so jusr keep to current arrangements for now.If you settle the debts you might be treated as if you still had that money.
  • TELLIT01TELLIT01 Forumite
    14.3K Posts
    Eighth Anniversary 10,000 Posts Name Dropper PPI Party Pooper
    Do not pay off debts with your redundancy money if you don't have to. If you are still unemployed after 6 months (hopefully not), and have to look for Income Related benefit, that spend could be considered to be deliberate deprivation of capital.
  • Mersey_2Mersey_2 Forumite
    1.7K Posts
    KWJ - to answer your question, it depends what type of debt it is. A recent decision by the Upper Tribunal of the Social Entitlement Chamber, does mean that if eg you had savings of £11k, but an overdraft or loan with the same bank of £6k, then you would be deemed to have assets of £5k and so entitled to income-based JSA, as the debts can be called on. It depends on the wording of any loan/debts essentially.
    Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.
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