I am currently claiming UC while on unpaid maternity leave.
I have had to hand my notice in as my son is disabled and I am his carer. My end of employment date is 21/04 and I am going to be receiving a one of payment from my employer on 25/04 for holiday pay they owe me from 2024. This will be around the £1800 mark.
I currently receive around £580/£600 UC per month. My question is when I receive this one off payment from my employer, how many months will they drop my UC to £0 for? I assume the first month it will drop to £0 because of the one off payment that month but the following month will they drop it to £0 too? Essentially the one of payment from my employer benefits me in no way then as I am being deducted UC to cover this full payment?
Also another question, the month my UC drops to £0 do I have to reapply for it again for the following month, will they cancel my UC claim? Or as it's a one off will they keep my claim open and pay me as normal the following month?
I'm not sure how it works and would appreciate any advice.