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Redundancy followed by claiming UC
- denby
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9 months 3 weeks ago #285944 by denby
Redundancy followed by claiming UC was created by denby
For someone else please...if they accept redundancy following a worsening of a longstanding health problem, with no given likelihood of improvement back to being fit to work. How would they stand re the lump sum? Expected to live off it till below capital limits, and then given aggressive questioning as to how and why they spent it/accused of intentional deprivation/treated as still having it, 'notional capital,' etc? Is it OK to live off it at same rate as the job paid for a while, meantime clearing debts and having necessary [but not cheap] repairs to poorly insulated home done, then claim UC? Really grateful for advice I can pass on to someone with genuine struggles, as I've far less understanding of UC than I do PIP.
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9 months 3 weeks ago #286017 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Redundancy followed by claiming UC
Hi denby
Your question is outside the remit of the forum, I will try and answer it but I would advise your friend to seek help from their local Welfare Rights Organisation, who will be able to take all their circumstances into consideration.
The lump sum would be classed as savings, normal rules would apply, over £16k not eligible to claim UC.
They should consider delaying their claim if they finish work and they are due to receive their last wage or holiday pay. These are taken into account in the universal credit calculation and will therefore reduce the amount that they get for the first month. However, if they claim universal credit the day after they have received these payments, they will not be taken into account.
My advice would be to claim NS ESA initially as savings are not taken into account or their partners income, if they have one.
Gary
Your question is outside the remit of the forum, I will try and answer it but I would advise your friend to seek help from their local Welfare Rights Organisation, who will be able to take all their circumstances into consideration.
The lump sum would be classed as savings, normal rules would apply, over £16k not eligible to claim UC.
They should consider delaying their claim if they finish work and they are due to receive their last wage or holiday pay. These are taken into account in the universal credit calculation and will therefore reduce the amount that they get for the first month. However, if they claim universal credit the day after they have received these payments, they will not be taken into account.
My advice would be to claim NS ESA initially as savings are not taken into account or their partners income, if they have one.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- denby
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9 months 3 weeks ago #286089 by denby
Replied by denby on topic Redundancy followed by claiming UC
Thanks for your reply Gary.
Broadly, as I'm not sure how accessible local advice services will be, I was thinking to suggest the person does not submit a claim for UC at all until they have lived off the sum and spent a large proportion of it on the repairs. So then they will be under the £16k and have say three months bank statements showing this.
I'm hoping forum readers who have some experience or knowledge of this may help, eg
how far back do UC ask for sight of bank statements at the point of a new claim.
Do they ask when you finished work and why?/why didn't you claim immediately?
Would they even say you shouldn't have taken redundancy despite having evidence of health collapse?
I am desperate to try and protect the person from having their health made still worse by a bad reaction from UC.
Many thanks.
Broadly, as I'm not sure how accessible local advice services will be, I was thinking to suggest the person does not submit a claim for UC at all until they have lived off the sum and spent a large proportion of it on the repairs. So then they will be under the £16k and have say three months bank statements showing this.
I'm hoping forum readers who have some experience or knowledge of this may help, eg
how far back do UC ask for sight of bank statements at the point of a new claim.
Do they ask when you finished work and why?/why didn't you claim immediately?
Would they even say you shouldn't have taken redundancy despite having evidence of health collapse?
I am desperate to try and protect the person from having their health made still worse by a bad reaction from UC.
Many thanks.
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- Chris
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9 months 3 weeks ago #286093 by Chris
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Chris on topic Redundancy followed by claiming UC
Hi denby,
Slightly similar thing happened to me - After many years in local government, I had a breakdown due to the pressures of work, and staff sickness and low morale, and ended up on long term sick myself, and was eventually forced out as Occ Health seen me more as a problem due to clashes with members of staff and my deteriorating health. I was awarded a pay out, and decided to live on that for a few months before claiming UC, as I had absolutely no experience of the benefits system at that time, and I'm only going back just under 4 years ago. I did find other employment, but it failed to work out on a number of occasions, so I ended up claiming UC. I then found out that I may be eligible for PIP due to my declining health - tried myself a couple of times, but then turned to help, and was then awarded standard at both D/L and Mob with a backpayment. I never realised that I had to spend the backpayment within a year, and put it into bonds and ISA's for a year, which gained interest, but then it just so happened that within a couple of months after the payout, DWP requested my bank statements for 4 months. They'd seen that I had over the £6,000 limit in my bank, due to the payouts showing in and out for the ISA's and Bonds, and I informed them about it being a PIP backdated payment, to which I was then told about the "year to spend rule" - and they requested a full 12 months of my bank statements, so they could see proof of the PIP backpayment also. Because it was in depth too, as I had Help to Save scheme also, I had to send them my bank statements, ISA's, Bonds and Help to Save statements for 12 months too - long story short, this resulted in my UC being cut by nearly £100 per month, and still is to this date.
They didn't ask me about why I finished work, or why I didn't claim immediately, but I was very open and honest with them about what happened in the workplace, so they knew what I had been going through, and I was lucky enough to have a really nice work coach, who supported me all the way. I've had several since then, as they either move to a new job, or leave.
I hope this information helps you a bit, but any further Q/s, just holla back, and I'll be happy to try answer for you.
Regards, Chris.
Slightly similar thing happened to me - After many years in local government, I had a breakdown due to the pressures of work, and staff sickness and low morale, and ended up on long term sick myself, and was eventually forced out as Occ Health seen me more as a problem due to clashes with members of staff and my deteriorating health. I was awarded a pay out, and decided to live on that for a few months before claiming UC, as I had absolutely no experience of the benefits system at that time, and I'm only going back just under 4 years ago. I did find other employment, but it failed to work out on a number of occasions, so I ended up claiming UC. I then found out that I may be eligible for PIP due to my declining health - tried myself a couple of times, but then turned to help, and was then awarded standard at both D/L and Mob with a backpayment. I never realised that I had to spend the backpayment within a year, and put it into bonds and ISA's for a year, which gained interest, but then it just so happened that within a couple of months after the payout, DWP requested my bank statements for 4 months. They'd seen that I had over the £6,000 limit in my bank, due to the payouts showing in and out for the ISA's and Bonds, and I informed them about it being a PIP backdated payment, to which I was then told about the "year to spend rule" - and they requested a full 12 months of my bank statements, so they could see proof of the PIP backpayment also. Because it was in depth too, as I had Help to Save scheme also, I had to send them my bank statements, ISA's, Bonds and Help to Save statements for 12 months too - long story short, this resulted in my UC being cut by nearly £100 per month, and still is to this date.
They didn't ask me about why I finished work, or why I didn't claim immediately, but I was very open and honest with them about what happened in the workplace, so they knew what I had been going through, and I was lucky enough to have a really nice work coach, who supported me all the way. I've had several since then, as they either move to a new job, or leave.
I hope this information helps you a bit, but any further Q/s, just holla back, and I'll be happy to try answer for you.
Regards, Chris.
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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