Holiday pay & UC

[bronzedproseccolover]

Hello,

My work have paid my accrued holiday as I'm not working with them anymore. Do I need to tell UC about this being holiday or just let them take it from me as a wage and then it go back to normal next month?

Thank you

You don’t need to tell them. HMRC will do it for you and they will adjust your award accordingly.

Thank you! I've been stressing about it lol so does HMRC tell them it's holiday. I feel I can't spend this money because I don't know what I'll get in 10 days time

It doesn't matter that it is holiday, it is money they are paying to you and it will be taken from your UC accordingly

They will treat as income and reduce your award accordingly by £0.55 for every £1 you earn above your work allowance (if you have one). I got a tax rebate this month of £500. Effectively I’ll be £225 better off as UC will be reduced. If you multiply your holiday pay by £0.45 that’s how much better off you’ll be assuming your in a new job and pay is the same.

It’s still pay - so your UC will be reduced for this month, and then be adjusted again next month if your pay is lower again.

Whether it’s holiday pay or work pay, it’s still pay. Same as if you’d taken the holiday as random days through the year. Your UC will see this as a higher paid month, because it is.

Ok thank you. I haven't been working as I had a baby, but this is the holiday I accrued from handing in my notice. So I'll just leave it as it is and let it be adjusted next month. I was just going to put in my journal that this pay isn't a working wage just holiday but seems I don't need to

It wouldn't harm to put a note in your journal- might be worth making clear it's a one-off rather than regularly working more hours?

This is what I was thinking. Just don't know how to word it. I know they like to chuck curve balls now and again in what you say

It might be worth putting in your journal that this is accrued holiday pay, and not that you’re back working.

Not because it’ll change what you get, but because it avoids any confusion about thinking you’re back working and gives the right expectation for next month.

On a budgeting basis, best bet would be to assume you end up with the same amount of money in total as you’d get usually. So no extra from getting the holiday pay. In reality, you’ll hopefully be up a wee bit, but reckon on that as extra rather than expecting it.

You could say:

Update on this months payment - my old job …… have paid me my accrued holiday pay. No change to my situation, still on Mat leave.

@ScaryM0nster sounds good, thank you for your help!

@ScaryM0nster just to clarify should I put this to my work coach or " about a payment " option

Payment.

Holiday pay is deferred wages. You're getting the cash value of days you were entitled to as paid time off but did not use.

Pay from the employer after tax will be more and, unless you've got unused work allowance, UC will be reduced by 55p for each £1.