Universal Credit
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Redundancy on health grounds

tara2019tara2019 Member Posts: 213 Courageous
Hi can someone help im due to receive redundancy pay 28th sept I claim ssp upto 01st Sept through my ex employer ive run up a lot of debt on visa cards ive informed uc that my redundancy pay is over 6000 but ill need to pay debt and whats remaining I will let them no over 6000 is left so they can reduce uc can I pay my debts 1st 
Thanks 

Replies

  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    edited September 2020
    HI,

    It will depend what your redundancy pay includes. If it includes earnings and holiday pay then this will affect the amount of UC you're entitled to in the month it's received. The earnings and holiday pay will be reported to HMRC by your employer.

    Paying off debt is not classed as deprivation of capital for UC purposes.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • tara2019tara2019 Member Posts: 213 Courageous
    What does deprivation of capital mean without the redundancy I could not pay my visa my garage roof needs fixing which has been leaking for few yrs without redundancy I couldnt live on 409 a month 
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    edited September 2020
    Deprivation of capital means giving your money away, buying expensive things to reduce your money to be able to claim a means tested benefit. As i advised, paying of debt is not classed as deprivation of capital. Savings of less than £6,000 are ignored. Do be aware though that if any of that money is earnings/holiday pay then it will reduce your UC, in the month it's received.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • tara2019tara2019 Member Posts: 213 Courageous
    Yes I know I won't get uc on 16th oct due to pay in lieu and holiday pay the rest redundancy so I can pay all my debts which ive occurred since Jan 19 and get my garage roof fixed and pay a decorator to fo my hse then I declared the rest over 6000 to uc I have informed uc today I received my final redundancy payslip and also informed them I need to pay visa debt pay for new garage roof which is attached to my hse and pay decorator and other little debts then whats left I will take reduced uc payment but the money won't last forever im im still waiting for lcwra assessment from Feb 
    Thanks poppy 
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    It could also affect the following months UC payment because of surplus earnings rules but it will totally depend on how much you received but DWP will know how much.

    Debts can be paid yes.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • tara2019tara2019 Member Posts: 213 Courageous
    Oki when paid my debts i will be left with 10.000 so would that effect the following months ino 17.40 per 1000 deducted uc if I don't get no uc that money would be gone in 10 months 
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    It's only the earnings and hoilday pay that affects your UC monthly payment. Whether it affects the following months UC payment completely will depend on how much of it was earnings and holiday pay.  The rest is classed as capital and will reduce your UC by £17.40 per month for every £1,000 over £6,000.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • tara2019tara2019 Member Posts: 213 Courageous
    Think I get it now was putting all money together so for a rough example my lieu n holiday pay is 2300 and redundancy is 11000 pay my debts out of capital leaves 7000 is this about right 
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    I have no idea sorry, only you know exactly how much you had and what was holiday pay etc.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • tara2019tara2019 Member Posts: 213 Courageous
    Them figures are right just left off the pence 
  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    Sorry but i don't know. Your employer will have reported the earnings and holiday pay to HMRC and DWP will know through that. Anything on top will be capital.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • tara2019tara2019 Member Posts: 213 Courageous
    Thanks poppy im bit clearer now I have informed uc exactly what I got and for what and all my debts which I will be paying off on Monday just waiting for a reply 
    Thanks

  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    You're welcome.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
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