I wonder if anyone can settle an ongoing debate in our office about the effect of contractual redundancy payments on contribution based JSA. Both NACAB information system and CPAG handbook state that if a contractual redundancy payment is made with reference to a specified period then the excess amount above the statutory redundancy entitlement will be treated as earnings for the period it represents and contribution based JSA will not be paid for this period.

However another colleague was advised in writing, ironically by CPAG, that if a contractual redundancy payment is made which relates to a specified period contribution based JSA will not be paid for the period that the entire amount represents and not just the amount in excess of statutory redundancy.

Has anyone had any practical experience of how DWP treat contractual redundancy payments?

I understand it to be the way your information system describes it.
see regs below.

JSA Regs.
52 (3) A person who was, or was treated as being, engaged in remunerative work and in respect of that work earnings to which _ regulation 98(1)(b) and (c) _ (earnings of employed earners) applies are paid, shall be treated as engaged in remunerative work for the period for which those earnings are taken into account in accordance with Part VIII.

98.—(1) Subject to paragraphs (2) and (3), “earnings” means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes–

(b) any compensation payment;

(2) “Earnings” shall not include–

(f) any redundancy payment within the meaning of section 81(1) of the
Employment Protection (Consolidation) Act 1978(c).

(3) In this regulation “compensation payment” means any payment made in respect of the termination of employment other than–
(a) any remuneration or emolument (whether in money or in kind) which accrued in the period before the termination;
(b) any holiday pay;
(c) any payment specified in paragraphs (1)(f) _, (ff),_ or (g) or(2);
(d) any refund of contributions to which that person was entitled under an occupational pension scheme.

Thanks for that Euan.