Funded hours and redundancy

[Downbadcrying]

I'm currently on maternity leave, going through the redundancy process. I have my elder child in nursery, she's just turned 3 so due to get 30 hours from September.
My last date of employment is likely to be end of July, but I'll get my final pay in August payroll.

I have to reconfirm my eligibility between 16 August - 12 Sept.

How does it work if I'm technically not employed anymore, but I'll meet the earnings criteria for that period (due to getting paid in August).

I can't quite remember but doesn't it ask you if you're going to meet the earnings threshold in the following 3 months as well?

It says you have to earn £195 a week for 3 months.

I'll earn more than that... it'll just all be in one pay packet in August.

Not sure if that matters. I'm getting pay in lieu of notice.

If you have the funds available, put the maximum you can into your tax free childcare account before you are made redundant to make the most of the government top up. Similar happened to me when DH was made redundant. I think I was able to reconfirm eligibility just before he actually lost his job, but we were also able to put some extra funds in as I didn’t know how long it would take him to find employment again.

"Your earnings
Over the next 3 months you and your partner (if you have one) must each expect to earn at least:

• £2,539 before tax if you’re aged 21 or over (equivalent to £195 per week)"

So if I reconfirm on 16 August, I can honestly say yes I'll earn over £2,539 over the next 3 months (it will just all be paid at end of August and them nothing). But I'd have to answer "no" to the "are you employed" question?

If you’re not employed on that date then you can’t reconfirm eligibility. It’s a pain because you only have a 1 month window to reconfirm and it’s on their set dates. I remember thinking I was lucky the way our dates fell as the window opened up just before DH was made redundant, but that was just luck.

This is in addition to you needing to be employed though, which at the point of reconfirming you won't be.

That's what I'm worried about... seems so unfair. I didn't ask to be made redundant. I have a 4 month old baby, it's not like I can walk into another job. Technically I should still be on maternity leave.

Guess I was hoping if I hadn't received my final pay check / p45 yet I'd be able to get away with it?

There might be a grace period, would be worth looking into.

Remember HMRC will receive your P45 at the same time you do, so there's no hiding it.

You'll still get the universal 15 hours, just not the additional working parents 15 hours. This is enough to give your daughter early education and socialisation. The childcare portion you will be able to cover yourself if you aren't working.

Thanks, good to know. Obvs don't want to be done for benefits fraud!

Wasn't sure if the P45 was generated on last day of employment or on final date of being paid.

The problem with this is if I take her out of nursery and move her to a setting with 15 hours only, what exactly do I do if/when I hopefully find another full time job? Waiting lists for nurseries are a year long round here. It's an impossible situation.

Why do you need to move her? If you have a 4 month old then you probably won't be going back to work for 6 months or so anyway. The tax payer cant just pay for you to have free childcare just in case you get a job so you dont have to go on a waiting list.

It’s worth checking how your employers are dealing with your SMP. Whilst they may pay you your redundancy in August, will they carry on your SMP each month until it runs out and therefore your P45 won’t be issued until your SMP finishes?

Just in case I get a job? I've worked full time since I was 21. I fully intend to be back in employment as soon as possible (allowing for the rest of my mat leave). If I reduce her down to 15 hours, it will literally be impossible for me to get another full time job with a year long waiting list. I'm trying to do everything to ensure I can work again as soon as possible.

I think it all gets paid out as a lump sum.

But she should have been on MAT leave for the next 6 or so months, thus still entitled to funded child care. I get where you’re coming from but it’s not as black and white as that. Through no fault if her own, her time to bond with her 4mo is basically cut short when she should actually just be on MAT with DC 1 in nursery still.

I'd give them a call. You'd have been eligible on maternity leave so there may be a fine print T&C for something like this.

Does your redundancy have to be paid as a lump sum?

Apparently so, but I'll ask work the question again.

Thank you to everyone who understands where I'm coming from. I'm already incredibly stressed out by the redundancy, I should be focusing on my young baby rather than worrying about all this. Feel like I've been totally screwed over. But the last thing I want to do is take my older child out of nursery and risk not getting her back in. But at the same time we can't afford it without the 30 hours if I'm not bringing any money in.

Just a thought - could you not go onto STAT maternity pay and be eligible via that? I don’t know the ins and outs but just done a quick google which throws up the following:

“Yes, if you qualified for Statutory Maternity Pay (SMP) before being made redundant, you are still entitled to receive it for the full 39-week period, even after your employment ends. Your employer is obligated to pay you SMP, and if they stop, you can contact HMRC's Statutory Payments Disputes Team to ensure you receive it.”

ETA link: https://maternityaction.org.uk/advice/redundancy-during-pregnancy-and-maternity-leave/#Your_rights_if_you_are_being_made_redundant

I think I will get all the maternity pay I'm entitled to, but it will all be paid out in one lump sum in my August pay check. It's not the earnings that are the issue, it's the fact my last day of employment is due to be a couple of weeks before my reconfirmation date (unless I can negotiate).

Yes the issue here is the maternity leave, rather than the pay.

Interested to hear what they say though OP.

Sorry I didn’t realise you were getting the full pay, I thought it would just be an agreed lump sum. It seems wild though as you could completely change your return to work date and not be entitled to the same pay they paid you if that makes sense? I knew it wasn’t about the cash specifically but thought if you went onto the government paid STAT maternity pay, you’d then basically be employed on MAT leave. I would phone to check I think to be honest, they are quite helpful. My friend got made redundant when pregnant so only got STAT, but now she is able to have STAT pay for X percentage of the week and work the rest. There will be options in this circumstance I am sure!

Thanks for all the advice. I will give them a call and see what they say. And also try to negotiate a post August 16th finish date at work. Feel like that's the least they can do!

Hey! Jumping on this really late, but I'm in a very similar situation right now and was wondering how this all worked out for you? I really don't want to take my daughter out of nursery because she loves it and we wouldn't get back in again, but we just can't afford it without any funding!