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Redundancy - what benefits are we entitled to?

(27 Posts)
Ambi Sat 22-Aug-09 16:51:24

I'm looking for the Benefit know-it-alls to help me out. I've used all the different calculators but they are not clear.

We got back from holiday to find DHs company in Administration. We have mortgage insurance, which we've started the claim on but we have to wait for the Creditors meeting before the Liquidators will formally notify us, that is next week, but at least the claim is started.

I work PT 22.5hrs pw earning 11k so I think we will get income support and DH will get JSA and our tax credits will increase - I've notified the Tax Credit office. Is there anything else we are able to get? Council Tax benefit maybe?


Ambi Sat 22-Aug-09 16:53:30

Oh and we are claiming for the redundancy payout from the Insolvency Service but god knows how long that will take to come through.

easymover Sat 22-Aug-09 17:11:41

Ambi a lot depends on how many DC you have and any savings.But i do know you will not be able to claim income support.Your DH may be able to claim JSA for 26 weeks.This is around 64 pounds a week but if he has any other income from any where it will be took off the JSA.HTH

LilyOfTheMountain Sat 22-Aug-09 17:16:13

Ambi Hi, we've been in a similar sit recently

You can claim CTB through your local council many do it online), do it ASAP but whether you get it varies- have a go though as it is a 'link qualifier' for many benefits including free school meals

We found the calculator that made accurate predictions was entitled to, although we're rented which technically makes it easier (except not as we have decided to delay claiming that until starvation threatedns us).

Don't think you will get IS these xdays, under the newer system any payments for kid rpeviously amde through IS would be made through WTC.

Good luck

Ambi Sun 23-Aug-09 05:47:30

Thanks for your help. I thought we would get IS as I'm on 11k, I thought the bracket for that as a couple was 15k. I have one dd who is 1 so we won't need school meals. The only other income will be our mortgage protection, I'm not sure whether that is taken into consideration.

Ambi Sun 23-Aug-09 05:49:52

As far as savings go, not a great deal, a couple of thousand which will cover our bills for the next few months.

easymover Sun 23-Aug-09 10:16:19

Income support is for people that can't work.i.e single parents or disabled people.
Your Dh may be entitled to JSA but this will only be for 26 weeks.
With 1 DC you will get around 80 pounds aweek CTC/WTC.And your wages.You may also get help with your council tax.

expatinscotland Sun 23-Aug-09 10:28:13

You work PT. If he doesn't work at all you'll get working tax credits, child tax credit and he'll get contribution-based JSA for 26 weeks.

It's not likely you will get much council tax benefit, and it does depend on how much savings you have.

As pointed out, IS is only for lone parents and the disabled.

Income-based JSA, which is what you go onto after the 26 weeks on contribution-based, is only for those couples where no one is working over 16 hours.

Council-tax benefit depends entirely on the council. It's usually the same form as the one you use to apply for housing benefit. You willl have to show bank statements, wage slips, the lot.

expatinscotland Sun 23-Aug-09 10:30:32

I think you're confusing income support with working tax credits.

Working tax credit threshold is about £15K.

Income support, however, is entirely different as pointed out.

Ambi Sun 23-Aug-09 10:43:58

Thanks for your help guys, looks like its gonna be a very shit few months ahead of us, hmm can't wait. I'm sure we'll manage somehow, there's so many other people in the same boat as us.

expatinscotland Sun 23-Aug-09 10:52:31

Inform the tax credits people of your drop in income.

You can get the forms to apply for council tax benefit at any time.

PavlovtheForgetfulCat Sun 23-Aug-09 10:53:13

You will be entitled to wtc/ctc which should be around £300-400 every 4 weeks or so. I do not know if they will take into account your income for mortgage relief, probably, but maybe this will not take you over £15k, if it does not take you over the £15k, it should not affect it.

If it does, it might not be worth claiming all of it, not sure if you could claim for say two thirds, enough to bring you just under £15k in total?

You will be entitled to free prescriptions if you and your DH need them.

Any redundancy received will need to be declared when it decided, not before.

Ambi Sun 23-Aug-09 11:04:18

Thanks Pavlov, I've spoken to TC, they asked about red package, which we think will be about a thousand from the insolvancy service, they said that won't be significant enough to be taken account of, we are entitled to £41pw because DHs earnings year to date take us just over the bracket to £16k sad oh just our luck of course.

PavlovtheForgetfulCat Sun 23-Aug-09 11:15:38

oh that's crap. Would it be worth looking into dropping your own salary so you reduce it by £1000 for this year? I am suggesting as dh lost his job in jan and we missed out on any increase as we just earned over the threshold, even though our monthly income decreased significantly and it was v v hard. This year i am on ML and gve them my predicted wage and am just under the threshold - went from £40 per month to £400 approx and the difference it has made between us going under or not is huge. We did not give them our estimated earnings until July, and they have kept April, May, June's rebate as a 'retainer' which is good as it means that if/when DH gets a job and it all reverts back to normal, this can be used to pay back any overpayment. If he does not get a job, we will get this back at the end of the year.

The difference of income between last year and this year on mat leave will be about £100 per month, but the increase in support is much more than that, so I am wondering if reducing your income might do the same?

Not sure if that makes sense.

Ambi Sun 23-Aug-09 11:34:11

Definitely worth thinking about Pavlov, thanks. I work in accounts and deal with figures so I try to be non emotive about finance, but its not easy when trying to calculate our cashflow over the next few months. I'm trying to be positive because we have been frugal since maternity leave, so our outgoings are the lowest they can be.

expatinscotland Sun 23-Aug-09 11:34:36

Just make sure your hours remain at 16/week or over. You drop below 16 and it could royally suck because he can't get income-based JSA at present, only contribution-based.

PavlovtheForgetfulCat Sun 23-Aug-09 11:45:17

yes, should have said expat, keep your hours above 16 if you can.

PavlovtheForgetfulCat Sun 23-Aug-09 11:45:43

Good luck, I know how hard it is in this climate.

wilbur Sun 23-Aug-09 11:57:09

Sorry to hear about your dh, ambi, it's crap isn't it? I hope you dh is not too down and that something good comes up for him quickly

I was going to post exactly your question as dh was made redundant at the start of the summer hols (although it is only this week that he's officially unemployed due to consultation period etc) so I hope you don't mind if I outline our situation and see if anyone knows if it is possible for us to claim any benefits?

Dh has been given a lump sum as a redundancy payout (in lieu of the notice period he was entitled to) - does this cancel any rights he has to the contribution-based jsa? I am not currently working but I know we would not qualify for income-based jsa as we do have a small income from a share account, plus some savings.

If anyone knows the answer to this, I would be very grateful. I have looked at the gov website, but it is not terrifically clear. TIA.

expatinscotland Sun 23-Aug-09 12:01:10

you get contribution-based JSA FIRST, then moved on to income-based after the 26 weeks if you haven't found suitable employment and you qualify for it, because JSA is based on NI contributions.

PavlovtheForgetfulCat Sun 23-Aug-09 12:01:45

Wilbur - I do not know, but you can look at ''
Also, just apply for benefits, you will not be penalised for applying, if you are entitled, they will award them, if you are not, they will just say no.

wilbur Sun 23-Aug-09 12:17:19

Thanks guys, that's great. I thought the contribution-based JSA worked that way, but it's not explicit on the website. At least that covers some bills for the next few months. Dh works in retail, so I imagine it will be a little while before he gets a new job.

easymover Mon 24-Aug-09 10:55:43

Ambi i have just remember something about ctc.When you put a claim in the first 100 of maternity allowance isn't counted has earnings.It may be worth trying again if you didn't know that.HTH

expatinscotland Mon 24-Aug-09 11:06:48

Whatever you do, Ambi, regarding tax credits, be sure to cover your arse! If you do things by phone, make sure you log the time and date of the call and whom you spoke with. If you do things by post try recorded delivery.

Ambi Mon 24-Aug-09 16:23:23

Thanks easymover but my Maternity pay was accounted for in the last tax year, so shouldn't affect this years claim. Good point Expat, they have a tendancy to screw things up. DH just spoken to JSA, hopefully will receive 90-120pw, which is more than I'd expected and will certainly help.

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