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does a settlement payment before employment tribunal affect cb-ESA?
Client has been offered a COT3 settlement payment of £21k to avoid her case going to an employment tribunal for unfair dismissal and disability discrimination.
Client receives PIP and contribution-based ESA.
Will this settlement payment affect her ESA or other benefits?
The settlement is called a post-termination payment which is non-taxable if it’s below £30k.
See page 1206 CPAG Welfare Benefits & Tax Credits Handbook 2019/20.