Help navigating redundancy with UC

Willow2020 · September 28

Good morning everyone, as the title suggests I’m currently being made redundant by my employer and whilst I’m being offered a settlement of roughly £30k I’m worried about how this affects my UC payments moving forward. Unfortunately when I divorced in 2020 I accrued significant debts mainly because my ex husband dragged his feet throughout the court/financial order process, I currently owe roughly £25k and plan to clear these debts with my redundancy money. I’ve tried contacting UC through my journal to explain the situation and they’ve been particularly unhelpful saying they can’t discuss anything until the money hits my account. I’m still completely in the dark about if my payments will stop and for how long, any help and advice about this would be greatly appreciated.

Kimi87 · September 28

Debt repayment is not seen as deprevation of capital. If you pay off your debts in the same assessment period as you receive the money, you should be fine.

If on the last day of your Assessment Period you have over £6k of capital with the remainder, this does need to be reported to them.

You'll probably be asked to take paper copies of bank statements into the Jobcentre, they may then ask about where the £25k has gone. As advised debt repayment is allowed.

Willow2020 · September 28

thankyou, the money loaned to me has come from family and I have been paying a monthly direct debit for the past 18months which is provable on bank statements ect and some of the debt also is in credit cards with banks. I can easily prove these but worried they might not see it as credible enough even with the paper trail.

Kimi87 · September 28

I understand your concerns perhaps talking with a trained benefits advisor might be a good idea?

https://advicefinder.turn2us.org.uk/

Help navigating redundancy with UC

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