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Voluntary Redundancy.....


skbuncks
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Hi All

 

If I was to take voluntary redundancy how would this impact on what possible benefits I could claim for??

 

cheers skb

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Hi there, redundancy payment does not count as capital (savings) when claiming certain benefits....therefore you can claim

 

You will need to claim Job seekers Contribution based. This is based on your national insurance contributions for the two previous full tax years.

 

You will be paid only for 6 months which is why your redudancy payment is ignored. After that you will need to be moved over to Job Seekers means tested....any savings under £6000 is ignored. From £6001 to £16000 a £1 will be deducted for every £250 held. Savings over £16,001 will make you not entitled to benefits. (check these thresholds they may have changed this year)

 

Also, be careful if you have any payment protection insurance for your mortgage or loans, they will not usually (almost never) pay out if you have volounteered for redundancy as they view it as you have left your job of your own free will.

 

Hope this is helpful.

 

Kind Regards

 

Ell-enn

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