× Search rightsnet
Search options

Where

Benefit

Jurisdiction

Jurisdiction

From

to

Forum Home  →  Discussion  →  Housing costs  →  Thread

Housing benefit and redundancy - PILON and holiday pay

CAAdviser
forum member

Central and South Sussex Citizens Advice

Send message

Total Posts: 57

Joined: 12 December 2017

Just want to check my understanding is correct (or not!) as I can’t find anywhere that states this categorically.

If someone is made redundant and their last day of work is say tomorrow when they receive their pay for the previous month.  In 3 weeks’ time they receive their final payment from work and it includes their redundancy payment (capital), PILON for 4 weeks and 4 weeks’ holiday pay.

I am assuming that HB apply the PILON as if it’s recd over the 4 weeks from the date employment ended, and then they apply the holiday pay over the following 4 weeks.  So effectively their HB award should remain the same for the next 8 weeks - it would be as if they’d worked for 8 weeks after they their employment ended.

Is that correct?

Many thanks

Prisca
forum member

benefits section (training & accuracy) Bristol city council

Send message

Total Posts: 198

Joined: 20 August 2015

The working age and pension age regs are different for this.
For working age claims, the amount of PILON received prior to first day of entitlement is disregarded as income (sch 4 1 b of working age regs applies )
The HB regs you need are 35 and 36 and then look at Schedule 4 to find ourt which bits of these are disregarded if they relate to employment which ended before the start of the HB claim.
For pensioners, I dont think there is an equivalent provision in their regs for the PILON amounts to be disregarded etc.

However, I assume your customer is already in receipt of HB when they are made redundant? (because new HB claims are very limited)

if its an ongoing claim, the PILON is treated as income for the period it covers, but i think the holiday pay is treated as capital.

CAAdviser
forum member

Central and South Sussex Citizens Advice

Send message

Total Posts: 57

Joined: 12 December 2017

Hi

Yes you are right this is an existing HB claim and they are working age, I should have specified.  Holiday pay is disregarded if received more than 4 weeks after the end of the employment and if not, is treated as income.  My question is more about how the income is applied - I am assuming it is apportioned - and in what order?

Thank you for confirming that PILON is apportioned over the period it covers - I believe the PILON is applied first and then the holiday pay over the weeks after the employment ends?

Many thanks