Universal credit and lump sum payment

[ucquestion21]

Hi, just looking for some advice as I'm struggling to get a straight answer elsewhere.

My partner lost his job just before I went on maternity leave, we are therefore claiming universal credit to top up my maternity pay (I get SMP only). We currently have savings in the region of 5k.

I have had an ongoing dispute with my employer for a while now, this was due to go to tribunal this year. However, my employer is now suddenly looking to settle out of court. I don't know yet how much the settlement may be, but they also want to buy me out of the job and therefore may have to pay the rest of my SMP in one lump sum as no matter what they are liable for this. Currently I have 6 more months of SMP to go.

I'm not bothered about any deductions from my UC with savings between 6k-16k. However, with the lump sum of SMP the settlement may push me over the 16k threshold, but unlikely to be much more than that. We would therefore no longer be eligible for universal credit, but after one or two months would be below the 16k threshold (from paying the rent, bills and normal household expenses). What happens then? Are we straight away eligible for UC again once below the 16k threshold and can reapply? Or are we not allowed to reapply for a certain length of time? I am just worried that we would be required to burn through a significant amount of the settlement with zero income, and end up worse off for it.

I have called the UC helpline but they advise me to note it in my journal. I don't really want to put anything on my journal until I have a settlement figure though, as I am worried they will suspect I am planning to deprive myself of capital before I even have a settlement, which is not the case at all!

Any advice would be appreciated.

So is the decision to finish work being forced on you or are you voluntarily finishing work ?
There should be no problem re-claiming Uc once your savings fall back under 16k. You can do a rapid reclaim within 6 months, so no need to start a new application. I would keep bank statements/ receipts etc just so you can prove where the savings have gone if needed.

That seems quite straightforward, thank you! The fact that I couldn't get an answer on the UC helpline made me worried that it would be more complicated than that. And regarding leaving my job, I suffered quite bad discrimination there so the idea of returning in a few months makes me feel very anxious. I planned on resigning at the end of my mat leave (with a new job already lined up of course), but now the company is suggesting paying to mutually end the contract. If I insist on keeping the job, then they may not settle out of court which means the additional stress of tribunal for me to only resign in a few months anyway.