Will backpay from previous employment affect my current benefits?

[hugelyrippedoff]

Hi,

long story short,

 

 

I am currently on benefits and have been since April of this year.

 

 

My previous employer has now agreed after a long battle, that I was underpaid for the last few years

and is paying me the difference between the pay that I actually received

and the wage rise that I should have received, for those previous years.

 

However I am concerned that they will give it as a wage payment,

as if it is earnings for this year,

when none of it would be applicable to this tax year since I have not received any wages in this tax year only benefits.

 

So does anybody know if my current benefits might be stopped or affected because of the backpay?

 

Thanks for any advice.

[blondebubbles]

What benefits do you receive?

[hugelyrippedoff]

Hi,

I receive job seekers, child tax credit, council tax and housing benefit.

[Lapsed Workaholic]

If you have been unemployed and in receipt of unemployment benefits for the entirety of the current tax year to date and there is evidence to show that then it could not be possible for anyone to show that you have been employed.

 

It follows that any income you receive, whatever else it may be, cannot be earned income for the current tax year. It isn’t even as if it is a steady income, it’s a one-off payment into your account of money due to you.

 

I’m not sure how much a claimant’s account should hold now before it begins to affect benefits, it’s been a while since I checked. Perhaps someone might have the up to date figure. If your balance is below that figure then your benefits should not be affected.

 

If there are no laws to prevent an employer from putting this payment through the books as the current income of an ex-employee then there ought to be.

[hugelyrippedoff]

Thanks Lapsed, I hope this is the case.

[Mr.P]

I’m not sure how much a claimant’s account should hold now before it begins to affect benefits,

 

The current figure is £6,000 savings - This can be cash, savings in bank accounts, stocks & shares, bonds, or any combination (from: https://www.gov.uk/jobseekers-allowance/eligibility). Between £6,000 and £16,000, payments will be reduced at a rate of £1 for every £250 (or part of).

 

The best thing to do, is when payment is finally made and showing in your bank account, is to inform the DWP (in writing) of this one-off payment. Stress the point that it is back pay owing and there will not be any further payments made to yourself - If you also claim HB/CTR, inform your local council as well.

[hugelyrippedoff]

Thanks Mr P

[neword]

There could be a little problem with HB and CTB as they are based on earnings/benefits.

 

If you had been receiving either/both of the above during the time that this one off payment was for they may ask you

to repay some of the benefit you received during that time. I must stress that this would only happen if you had been

receiving the above benefits during that time. If you were not then there should be no overpayment for that period.

 

They may however class it as "other money coming in" so it could affect your HB/CTB when you receive it.

 

Best advice inform all relevant benefit dept's when you can show evidence just to make sure that you stay on their right side.

 

After all, it's better if it costs you a little now than a lot at a later date.

[hugelyrippedoff]

Thanks neword, well I didn't receive either hb or ctb whilst working, but the tax credits are also income based so maybe I will have to pay some back to them, but hopefully it shouldn't affect my current benefits then, do you think? That would be good to hear.

Cheers to everyone for taking the time to reply.