My client is age 63. He was made redundant on Friday 27 February and received 12 weeks PILON. He has £24000 in savings and will not be entitled to PC during his notice period.

Client has a long term illness. He had been on SSP since January before his contract was terminated and has been given an SSP1 by his employer. He has a med cert for 8 weeks.

Were he to claim IB now, he would benefit in full from the award during his PILON period. At the end of the PILON period and for as long as he was entitled to IB at the Short Term Rate, he would be entitled to PCGC (and therefore max HB and CTB) whether or not IB was in payment and therefore the IB wouldn't be beneficial.

But at the point next January when he would transfer to Long Term Rate IB his income, including his deemed income from savings at approx £37 per week, would exceed his PCGC Appropriate Amount and because his capital exceeds £16000 his HB/CTB would end and he would have full rent and Council Tax to pay. Plainly he would be worse off if IB was in payment at that time.

Is it safe for the client to claim IB for now while it would be beneficial to him, but to terminate the claim (eg by not renewing his med cert) before it becomes a liability? Or does he run some sort of risk of being deemed to have notional income on his PC claim if he appears to the department to have terminated his IB claim 'constructively'? His condition is such that he would probably sail through the PCA.