Help with redundancy and UC

[stunner1901]

Hi

My mate has just been made redundant and worked his last day of his notice today

However, his company is going to pay him last wage next friday 23/10
1 week holiday pay 30/10
1 week holiday pay 6/11
redundancy pay 3 weeks 13/11

This is due to cash flow issues

The question is when should he apply for UC?

He is a full time carer for his mum and as such will not be seeking work as he became a carer after covid started

He is worried about time scales for uc in terms of the problems caused by how his ex employer is paying his severance pay

Also which of the payments will affect UC?

i believe that the holiday pay shouldn't be counted as he could have taken those days through the year. However, i am not sure how the redundancy pay stands will this be deducted from his 1st uc payment

Many thanks in advance

[stunner1901]

Wylderose could you offer any advice please?

[Wylderose]

Hi

Universal Credit typically takes between 4-5 weeks to pay a claim so if your mate's last day at work was today, then it is in his best interest to make his claim today because the most important thing for him is to protect his tenancy (this is assuming that he rents his property) so he needs to ensure that he provides his tenancy agreement for his rent to get paid.

I cannot tell him when to make his claim but if he claims today, then his assessment period would run from 20/10/20 to 19/11/20, so any income he receives in that period from wages and holiday pay would be taken into account when assessing his Universal Credit. (Sorry Holiday pay is considered to be earnings). Likewise he can expect to have a deduction £1 for £1 for the amount he is claiming for carer's allowance for looking after his mother.

If he is a single person with no dependents then he can expect to have a 63% deduction taken off his Universal credit for the earnings he would receive (his contribution to his daily living from his income)

Redundancy pay is not considered to be earnings and is disregarded.

For him to get a better idea of what he would be entitled to and what he should be claiming within his UC award, he could do with using the Entitled To UC calculator

https://www.entitledto.co.uk/help/Ca...iversal-Credit

[stunner1901]

Thank you Wylderose

I am going to help him do the form tomrrow in that case

Thanks again