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looking for advice from anyone who knows about benefits, tax credits and redundancy. Or anyone who just wants to give me an opinion on what I should do with my life, I will list pros and cons, go on, you know you want to!!

38 replies

Aimsmum · 19/05/2008 18:33

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FAQ · 19/05/2008 18:34

ermmm - sorry haven't got a clue - but couldn't just read and ignore

Aimsmum · 19/05/2008 18:37

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CrackerOfNuts · 19/05/2008 18:38

What about taking the money and going back to college/uni, is that an option ??

chocolatespiders · 19/05/2008 18:39

i dont think tax credits have ever asked me about savings?

you could put them in someone elses name?

housing benefit have asked me about savings (i laughed)

BreeVanderCampLGJ · 19/05/2008 18:39

Worth mentioning that AimsMum is in Scotland so the benefits system may be different.

CrackerOfNuts · 19/05/2008 18:40

I think with tax credits, you can have £6000 of savings, or is it £3000. Never pay that much attention to that section tbh lol.

Iota · 19/05/2008 18:42

you need to be careful re voluntary redundancy if you wish to claim contribution based JSA.

If the company says it was 'voluntary redundancy' I think you can lose benefit, if it is just 'redundancy' you will not lose benefit apart from any wages in lieu.

Aimsmum · 19/05/2008 18:42

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MrsTittleMouse · 19/05/2008 18:42

I would recommend www.entitledto.com. It's always been really accurate for us, and it will allow you to put in several different senarios and find out how things pan out each way. I think that the savings limit for a lot of stuff is £6K, but I'm sure it's higher (£25/30K???) for others.

Good luck!

Iota · 19/05/2008 18:43

oh just seen the note about being in Scotland - I'm not sure about Scottish benefits

choosyfloosy · 19/05/2008 18:44

I think that your tax credits would stop immediately.

What are your outgoings per month? how long would the £10K last on that basis?

Is your job/trade very specialist, or can you turn your hand to a lot of things?

Personally, when feeling that bad about the job I would take the redundancy/year's salary but get the furthest finish date I could; I would look very, very actively for another job - apply for everything in local paper, write to places you want to work, etc. You are clear about what you want which is good - school hours, decent leave package, good team. there are jobs like that out there.

What area are you in and what are you looking for? Start networking now! I would defo take the redundancy, tbh i think thats a great offer.

MrsTittleMouse · 19/05/2008 18:44

Tax credits don't care how much you have in savings. We have quite a lot (will be a deposit for a house one day when they come down to our level in this area) and we still get CTC. What does happen is that we have to claim the interest that I get on the savings as income.

Things like housing benefit, they do care, and they will expect you to live off the capital.

QueenMeabhOfConnaught · 19/05/2008 18:45

Dh got a bigger sum than that in redundancy and was still entitled to contributions-based JSA.

Aimsmum · 19/05/2008 18:48

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Iota · 19/05/2008 18:48

"Job Seekers Allowance (JSA)

This is a benefit for unemployed people who are capable of work.

There are two types of JSA ? contribution-based (non means-tested) and income-based (means-tested).

Contribution-based JSA depends on the status of the worker?s National Insurance Contributions (NICs) NICs will have had to have been paid for one of the last two complete benefit years before the tax year in which JSA is claimed, and have contributions or credits for both benefit years. JSA is paid for six months (max). 18-24 year olds receive a lower rate, although they have to meet the criteria above, and no dependants? additions are paid. Redundancy pay does not affect contribution-based JSA. However, if payment in lieu of notice or holiday pay has been received, JSA will not be paid for that time."

from www.unison-scotland.org.uk/briefings/rbenefit.html

Aimsmum · 19/05/2008 18:56

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Fillyjonk · 19/05/2008 19:00

ok have only 2 minutes

there are 2 types of jobseekers allowance, one paid temporarily to those with sufficient class 1 contributions, one to those without.

you might well be entitled to contribution based JSA for a limited period (6 months)-they take only your income from work into account. this will depend on whether you have made sufficient class 1 contributions-as a rule of thumb if you've been there about 2 + years earning + £80 pw you should be ok.

but even if not iirc it is only savings above £6k that count (check this as it changes). they will reduce your jsa by something like £1 for every £250 over £6k.

tax credits are not affected by capital, only the interest on it, which is treated like any other income iirc.

SO basically you could quite possibly get 6 months full JSA plus the tax credits relating to being a family. If you had then spent £4k of the redundancy payout (I think this would be quite reasonable, btw! and unlikely to be looked on askance by the dwp) you could then get full jsa.

note i have not actually worked in this field for a couple of years-so do double check what i am saying!

Fillyjonk · 19/05/2008 19:00

oh lol loads of replies! it took me ages to write that!

oh well, hih

Iota · 19/05/2008 19:02

5.1.2 Variable sanction period

Additionally, a decision maker has the discretion to impose a benefit sanction on a person for a period of one to 26 weeks if s/he has:
bullet

lost a job through misconduct;
bullet

voluntarily left employment without just cause eg harmful to health, caring for a sick relative, except during the trial period of five to twelve weeks;
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without good cause, neglected to take up a reasonable opportunity of employment (see 5.1.3.2);
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without good cause, refused or failed to apply for or accept a job vacancy notified to her/him by an employment officer (see 5.1.3.2).

In determining the period of the sanction, the decision maker must take into account all the circumstances of the case and, in particular, the following:
bullet

where the job would have lasted more than 26 weeks, the length of time it was likely to last;
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where the job was lost through misconduct and the employer intends to re-engage the person, the date the person will return to work;
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where a person leaves employment voluntarily or fails to avail of a reasonable opportunity for employment, any mitigating physical or mental stress connected with employment;
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where a person leaves employment voluntarily and the hours were sixteen hours per week or less, the rate of pay and hours worked in that employment.

A person who has accepted voluntary redundancy is not treated as having left her/his employment voluntarily.

from www.lawcentreni.org/EoR/jobseekers.htm

I know it's from NI, but presumably is the same

Aimsmum · 19/05/2008 19:02

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Fillyjonk · 19/05/2008 19:02

working tax credits-entitlement stops when you stop work iirc

child tax credit-entitlment does not stop

so tax credits unlikely to STOP but would be sig reduced

you do have 3 months to inform them but you will have to pay back (through child tax credit) any overpayment

Fillyjonk · 19/05/2008 19:05

have paid NI for years, so am ok on that front, but I guess that would mean I wouldn't be able to claim until the year was up.-no you could claim when you stopped work, actually you'd have to, really.

So basically everything would stop and I would have to live off the £10k. - no you'd get something, at worst part JSA and child tax credit

So I would get no tax credits and things like HB or CTB would not kick in.- you'd prob get some hb/ ctb

Then next year if I got a job, WTC would be cut based on this years earnings? Or would it, if I stop getting it?- oh dear this is complicated. it depends on when it the year you start work but....kind of.

Hmmm, it's all very confusing!

Fillyjonk · 19/05/2008 19:06

oh dear really have to go but hb DOES depend on council decision about whether rent you are paying is reasonable given size of house, family, etc.

Fillyjonk · 19/05/2008 19:07

oh and i've worked in scottish advice centres, don;t recall any significant differences to wales/england BUT housing might be a little diffreent, can't remember

Aimsmum · 19/05/2008 19:09

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