Universal Credit and redundancy payments
I have a customer who was working for Thomas Cook earning approx £550 a month. She claimed UC when she was made redundant - her first award shows earnings of over £1000 from “redundancy payments office”.
I assume this payment covers more than a month its likely to v=cover her wages in lieu of notice. would UC ever split this payment/disregard any elements of it? (like we do /did in simple old HB…) She doesn’t qualify for CTax support now and while I m wondering if its worth advising her to query it with the DWP.
Any pointers /advise greatly appreciated - thanks
p.116 of CPAG 2019/20 refers.
You final earnings when you stop work are taken into account in the assessment period in which they are paid and includes arrears of pay, pay in lieu of notice and accrued holiday pay.
However, these lump sum payments should be treated as capital:
* statutory and contractual redundancy payments
* ET awards following tribunal
* pay in lieu of notice for damages for breach of contract