How will my SMP lump sum payment affect my universal credit.

[Blabbermouth96]

Hi, I have a question for any experts on SMP or those who have experienced this.

I am 29 weeks pregnant and I have been made redundant. As I passed the qualifying week my employer is liable to pay all of my SMP, which they will do. I am not entitled to redundancy pay.

On 30th of June I will be paid my last salary payment and my SMP lump sum. This is £9,129 before tax deductions.

Does anyone know how this will effect my upcoming assessment periods for universal credit?

You won’t get any I imagine, 🙄

You wont recieve any and a quick google says that its then treated as capital and anything over £6,000 affect how mich UC you recieve. Probably best to get in touch with them to find out for certain how it will affect you.

I know I won’t receive any in July, but how long will I not receive any for? When will my payments return to normal

@Blabbermouth96 i suspect tax and NI will reduce the gross amount, and your August payment will be based on earnings (nil) I assume providing savings are below the limit.

You are also likely to be eligible for a tax and NI refund, you will need to claim these from HMRC and that may impact future payments.

Have you tried talking to DWP/JobCentre as they are much better placed to advise you.

Redundancy money is tax free up to 30k

This will very probably be paid as SMP so the employer can claim 92% back. So unless there is a way to also indicate it is also redundancy I suspect PAYE will treat it as a bulk SMP payment.

@Tippingadvice @BestP0PUpBook its not a redundancy payment. I’m not entitled to one as I’ve not been there long enough. It’s just all of my SMP and monthly salary payment in one go.

@Blabbermouth96 as I suspected, that is why my advice yesterday at 18:19 is the best I can give.

Claim child benefit once the child is born