Can I Claim Benefits if I Have Volunteered for Redundancy?

Originally written by Natalie Martin, updated by the editorial team on 10th May 2026

Contribution-based and means-tested benefits

If you've agreed to voluntary redundancy, or you're weighing it up, you'll want to know what financial support is available. Taking voluntary redundancy doesn't stop you claiming benefits. The rules are the same as for any other redundancy. What matters is which benefit you're claiming, your National Insurance record, and in some cases your savings or redundancy pay.

Out-of-work benefits split into two camps:

New-style (contribution-based) benefits. These rest on the National Insurance contributions you've paid in the relevant tax years. Your savings and any redundancy lump sum don't affect them. Nor does a partner's income.
Means-tested benefits. These look at your household income and capital. For most new claimants, Universal Credit has replaced the older means-tested benefits such as income-based Jobseeker's Allowance and income-related Employment and Support Allowance, both now closed to new claims.

Most people leaving work through redundancy will be looking at new-style Jobseeker's Allowance, new-style Employment and Support Allowance, or Universal Credit. Sometimes you can claim a new-style benefit alongside Universal Credit.

Redundancy Action Plan

Tell us about your situation and get a personalised step-by-step plan for dealing with redundancy. Covers finances, job hunting, benefits, and wellbeing.

Try our Redundancy Action Plan free, here on this site →

New-style Jobseeker's Allowance and Employment and Support Allowance

New-style Jobseeker's Allowance (JSA) is for people who are out of work, or working very limited hours, and are available for and actively seeking work. To qualify, you usually need enough Class 1 National Insurance contributions in the last two full tax years before the year you claim. Many employees who've been working steadily will meet this test.

Your redundancy pay doesn't stop you claiming new-style JSA, and neither do your savings. This is one of the most common misunderstandings: a large redundancy lump sum sitting in your bank account will not reduce or block a new-style JSA claim. What can affect the amount you receive is private pension income above a small disregard, plus any part-time earnings. New-style JSA is paid for a limited period: see GOV.UK for the exact length.

New-style Employment and Support Allowance (ESA) is the equivalent for people who aren't fit for work because of illness or disability. Like new-style JSA, it's based on your National Insurance record, and savings and redundancy pay don't affect entitlement. You'll need medical evidence and a work capability assessment. If you don't have enough NI contributions for new-style ESA, you would normally claim Universal Credit instead.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Universal Credit and your redundancy pay

Universal Credit is the main means-tested benefit for working-age people. It's paid monthly and can include amounts for housing costs, children, and limited capability for work. Unlike new-style JSA and ESA, Universal Credit takes account of your household income and capital.

This is where redundancy pay matters. The rules work in stages:

If your capital (savings, redundancy lump sum, and most other money you hold) is above the upper capital limit, you can't claim Universal Credit at all.
If your capital sits between the lower and upper limits, you can still claim, but a tariff income is assumed from your savings, which reduces your monthly award.
If your capital is below the lower limit, it's ignored.

The current upper and lower capital limits are on GOV.UK. If your redundancy payment pushes you above the upper limit, a Universal Credit claim will not succeed until your capital has dropped. Many people in this position rely on new-style JSA or new-style ESA in the meantime. Run a benefits calculation again as your savings come down: people who start out over the threshold often become eligible for Universal Credit later.

Sanctions and other support

When you claim Jobseeker's Allowance or Universal Credit, the Jobcentre will ask why your last job ended. If they decide you left work voluntarily without good reason, they can apply a sanction, suspending some or all of your benefit.

In practice, genuine redundancy is usually accepted, even where you put your name forward, provided the role was genuinely going and the employer was making redundancies. Voluntary redundancy isn't the same as resigning. Keep your redundancy paperwork, including any letter setting out the reason and terms, in case the Jobcentre asks. Sanction lengths vary: GOV.UK has the current detail.

Other support worth checking:

Council Tax Reduction: run by your local council, with its own rules on income and savings.
Help with mortgage interest: available as a loan in some circumstances for Universal Credit claimants.
Pension Credit: if you're over State Pension age and on a low income.
NHS and other passported help: free prescriptions, dental treatment and similar support may be available depending on your benefit.

Before you claim: check your National Insurance record so you know whether new-style JSA or ESA is open to you; add up your capital, including the redundancy payment, before applying for Universal Credit; keep your redundancy letter and settlement paperwork; and use an independent benefits calculator to compare what you might receive. Check GOV.UK for current contribution conditions, capital limits and sanction rules.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Redundancy Action Plan lets you tell us about your situation and get a personalised step-by-step plan for dealing with redundancy. Covers finances, job hunting, benefits, and wellbeing. Try it now →

82 questions

Ask Redundancy Expert a Question

RedundancyExpert Editor 08/05/2026 at 6:04 pm

@tla Taking VR shouldn't bar you from claiming, but if you're not going to look for work due to health, you'd likely need to claim Universal Credit with a fit note, or potentially ESA, rather than the standard jobseeker route. Worth speaking to Citizens Advice before your last day to get the timing right.

tla 08/05/2026 at 1:55 pm

I am taking VR as my position is no longer going to exist. I am not planning to go back to work in another job due to health reasons, would this affect any benefits I can claim?

DonPelvito 10/03/2021 at 6:31 pm

Hi, I am thinking about asking my employer to be made redundant... I want to move into a completely different job that is not 9 to 5 office based... However, I am wary to do this as I am not sure what I will be able to claim for if I do... I am a private renter, and have council tax and the usual other household bills to pay... Any help would be appreciated...

Kind regards

Sue 28/11/2020 at 12:20 pm

I like to no that I got voluntary redundancy more than 16000.so wherther I can gert job seek as allowance.I have work more than 36 years National issuarns class A .i have save I got too.but I am looking for a job

Sandie 08/11/2020 at 12:22 pm

If I take redundancy can I claim benefit

Surgerai 29/08/2020 at 6:07 pm

Hi
if I take voluntary redundancy from my company what can I claim any benefits. Please do reply a.s.a.p. Thank you ps I am on national minimum wage on 40 hrs per weeks. Th

Surgerai 29/08/2020 at 6:04 pm

Hi
if I take voluntary redundancy from my company what can I claim any benefits. Please do reply a.s.a.p. Thank you ps I am on national minimum wage on 40 hrs per weeks. Please do reply a.s.a.p. Thank you very much

Kattis 25/08/2020 at 1:02 pm

My employers head company wants me to take voluntary redundancy. I am not sure about this since I fear not being able to take JSA/Universal Credit, housing benefit, and the council tax benefit. All my answers to the above questions were "A" but on #3 I answered C since I and still able to work. Should I accept voluntary redundancy?
Thank You.

Judd 09/08/2020 at 10:51 am

The company I work for are making 300 people redundant .i have worked for them for 13 year they will pay me 26 wks pay plus holudays I have not taken the only problem I have is I have worked from the last 43 year so I have paid my stamp but my husband is on a good salary so will he have to keep me or can I claim JSA and will I be able to claim the policy to pay my mortgage will this effect my JSA

Pelican 17/07/2020 at 6:24 pm

Where I work, we have all been advised we are 'At Risk of Redundancy'. They are going through the correct procedures of choosing who this will affect.
I am 2 years away from Retirement. Obviously, other younger staff want to keep their jobs. I had intended continuing to work for at least another 2 years past Retirement in November 2022. But now I feel I should jump ship to save someone else's job.
I have savings, my mortgage is paid, I have worked for the same firm for over 40 years. But Redundancy pay according to the Government Website will be at most £11,150. This works out at approximately £397 per month until I reach retirement age & can collect my pension. This is obviously going to be a huge shock!
I live with my partner, who cannot work due to severe back problems, but who does not sign on. Our only income is my wage to cover all bill.
I am concerned about offering to be Volentarily layed off, as I really don't know what sort of position this is going to leave me in financially.
Would you suggest I wait & see if I am made Redundant? The process has already started with people in other departments being made redundant.
Thank you.

Blakey 15/07/2020 at 8:20 pm

I’m taking voluntary redundancy and will receive after tax approx £50k.
I am looking to carry working.
Can I claim any benefits.

Steve 02/07/2020 at 7:22 am

I'm about to take v r and need to know if paying off loans and credit cards will count against me when claiming benefits. Obviously once I'm unemployed I wldnt be able to meet the payments on these debts. I am 63 years old and it is unlikely I will work again. Thank you

micky 30/06/2020 at 12:10 pm

hi, I have been offered VR , savings including redundancy would be well under 16k , can I claim for both jobseekers & universal credit?

thanks Mike

Leo 18/06/2020 at 12:21 am

I'm 44. Been working FT since i was 18 after college. I have worked at my current company for nearly 8 years.

We have been advised that redundancies are on the cards. I live alone in a council flat.

I would expect less than 10k redundancy, probably mire like 6k.

I havr CC debts of around 4k, 0% for the nnect 2 years. I have about that in savings. Should i use all my savings to pay off my card before i get made redundant?

My concern is having this money in the bank will prevent me from getting any benefits while i look for a new job , and will still have to pay full rent and council tax until its gone.. And pay some off card, it wont last long.

Normally i wouldnt be too concerned about re employment, but now so many people are seeking work, and so many companies are doing under it has become harder.

Thanks

CJ 25/05/2020 at 2:29 pm

I ve been made redundant, my partner works 35hr week, we have 1 15 yr old daughter. My payout is more that £16,000 can I claim benefits

baz 02/04/2020 at 5:57 pm

hi
my company offer me for vr if i get that
can i get benfit?
im allowed to claim for universal credit??
thank you

Nikki 30/03/2020 at 11:45 am

Good Morning
I have taken VR at my current employer, I took VR as I am setting up my own business, due to Covid-19 I can no longer pursue my business (for time being). I will technically be unemployed with no income form April 10th. My VR is less than £16000 (alot less). Am I entitle to anything with the current situation going on?

Thanks

Ml 06/03/2020 at 2:57 pm

Hi, If I get a VR of around £30k & use this to pay Towards mortgage and debts, would I still get benefits and which ones?
Thanks.

S 07/07/2019 at 6:40 pm

Hi I am opting for VR, my payout is just over £16k but I have no savings. Am I entitled to any benefits? Thanks

Fayet 30/01/2019 at 4:16 pm

I live on my own (mortgaged house) and I have 2 days left of a trial in a merged position. I'm unhappy and want to take the redundancy, which is under £10k ... can I still claim JSA?

B 17/01/2019 at 11:39 pm

I have been put told my job is at risk but am the only one in my team (we all have the same job title and do the same work) that has been selected and it is fairly obvious from their comments that they won't be finding me any other work. My boss has already informed the team i won't be returning to the team.
I'm told they've followed the proper process for selecting me over anyone else but i was under the impression that the process should only be starting now if our area has been selected at risk.
Is that correct?

Mike 10/12/2018 at 10:03 am

Hi. I have the chance of taking vr and the amount is over £16,000. I'm tempted to take the figure and pay off my loans which wouldn't leave much money afterwards, maybe a £2,000. would I be entitled to any benefits? I am married but my wife doesn't work.

RedundancyExpert Editor 02/08/2018 at 2:48 pm

You should be entitled to apply for Jobseekers Allowance

Kiki 31/07/2018 at 4:24 pm

Im a single girl living in council accommadation. I have worked all my life but im 20 years off retiring age. My company has asked for voluntary redundancies. My figures are les than 16k.
What benefits am i entitled to whilst actively seeking work?

RedundancyExpert Editor 21/06/2018 at 10:52 am

You can see whether you can claim free prescriptions via whichThe Turn2Us site may help

Joo 20/06/2018 at 6:11 pm

I have just taken voluntary redundancy and I cannot claim jobseekers as my husband works over 24hrs a week and even though my redundancy was under £16000. Can I claim free prescriptions as I wasn’t told anything at jobcentre apart from help looking for jobs

Eggy 15/03/2018 at 2:25 pm

Hi I'm taking M.A.R.S from work mutually agreed resignation through Ill health I have been off work so far 15 weeks and when my chemo starts another 8 months all I'm getting at no is child tax and child benefit and sick pay my resignation layout it only a thousand pound but I have cancer and am bringing up 2 sons one of who h is on the spectrum I have been told that I can't claim d.l.a for him am I entitled to claim any benefits as bills need paying I've been told I'm not allowed I font know where else to go for help

Tina 08/03/2018 at 11:26 am

Hi I'm considering taking voluntary redundancy, mainly due to ill health,however my husband is disabled and receives PIP,we are making enquiries as to we would stop receiving these payments if I was to take the redundancy.We also need to know what benefits we would get as an income to live on . I do possibly plan on continuing to work,on a part time basis,so once again would need to know how we'd stand financially. Thanks

RedundancyExpert Editor 21/11/2017 at 3:48 pm

You would have to speak to the JobCentre Plus regarding this and much depends upon your circumstances and whether you are looking for work etc. JSA is a non-means-tested benefit, so it is not affected by the amount of savings that you have, redundancy settlements or your partner's earnings/savings.

Goochie 21/11/2017 at 11:44 am

Can you help...i was made redundant it the begining of the year ..my redundancy is almost gone...my wife does not work...can i claim job seekers or Esa?...

RedundancyExpert Editor 03/11/2017 at 12:24 pm

Usually, you have three months less one day from when the event happened to make a claim to the tribunal. You can see more whichwhich will tell you all you need to know. I advise you give ACAS a call in order to see whether you have any options. If you were dissatisfied with the way your employer was acting, prior to your employer asking you to resign, you could have raised the issue as a grievance instead of accepting the resignation.

Rufas 02/11/2017 at 8:24 pm

I was forced to resign after11 years my boss has two companys one is a subsady and i was working for that one i refused to do a job one day as it was not safe i went home my boss then rang me up gave me an ultimatum i either go back or iwas i going to resign i said id do other jobs but not that one he replied it was all there was to do so what was i going to do so i said well i will have to resign then . So am i able to take him to a tribuneral to get my redundancy money or have i got no chance ?

JY 20/10/2017 at 10:00 pm

I am looking to request VR March 2018. I am concerned that if the date is put back to later in 2018, that due to new government legislation, the whole amount could be taxed, rather than just the amount over 30000 as it is at the moment. Please confirm this information. Thanks

Northampton 28/09/2017 at 9:26 am

Hi im due to be made redundant just before christmas ive been tild my redundancy will be 2027.50 for 10 years of work for the company i have 3 children and my partner isnt currently working hes a stay at home dad as we have small children and nobody who can help us with childcare the rendancy money wont last us long with paying bills and living could you please tell mewhat help will i be entitled to thank you
Worried mother

RedundancyExpert Editor 01/09/2017 at 11:18 am

If you have paid National Insurance for the past two years, you should be able to claim Jobseekers Allowance regardless of how much savings or redundancy you have. You can use the benefits calculator here to see whether you are eligible.

RedundancyExpert Editor 31/08/2017 at 12:51 pm

You can see more via the Turn2Us whichwhich should help answer your question.

Jacsel 31/08/2017 at 7:03 am

The department I work in is closing in Dec. I was given the option of
1 redeployment and if I didn't get a job by oct it would turn to compulsory and leave in Dec.
2 voluntary which would mean I still leave in Dec.
I opted for 2 as I didn't want to risk the chance of loosing the 22k payoff as this will pay off our dept.
Now I have concerns about signing on, there will be nothing left to live off, will I be able to claim job seekers?

Kj 30/08/2017 at 3:19 pm

Taking voluntary redundancy. Will get approx 13k. I worked 21 hours a week and was claiming working and child tax credits. I am wanting to work immediately after either temping or if I am lucky gettin a part time job straight away. Will I still be able to Claim working and child tax credits if I get a redundancy pay out ? I am married and my hubby works full time .

deegee 03/07/2017 at 8:33 pm

What are the rules when/if I can claim JSA if I have been made voluntarily redundant. I received a cash pay out of £30k but then added more into my pension.

Char 19/06/2017 at 1:48 pm

Hi
I am looking to take vr, I will come out with nothing.
I have one child under 5.
Will I get help?

RedundancyExpert Editor 31/05/2017 at 2:13 pm

If you have been made redundant help may be available to you, depending on your income, savings, health, family and type of accommodation, please see Turn2Us which

HotlinetoHel Back 30/05/2017 at 10:39 pm

I am considering taking VS the amount will be approx £11,000, I have chosen to do this due to chronic arthritis and can currently only work for 4 hrs a day caring for children. My wife works 22.5 hours a week, and we have about £2,000 savings, we live with parents, so thankfully have low overheads. Would I be entitled to any benefits? Thanks in anticipation.

RedundancyExpert Editor 25/05/2017 at 10:56 am

You should be eligible able to claim Jobseekers Allowance

Edinburgh 24/05/2017 at 3:51 pm

I am 55 and taking voluntary severance (package of £28k) and my company pension lump sum (£22k), and intend on paying off debts of £21k (credit cards) and £25k off of my mortgage which leaves £4,000 to pay for my monthly mortgage, bills and live on etc until I find suitable part-time work.

Can I claim benefits until I find another job? I have never claimed benefits before but have paid tax and National Insurance for 40 years.

RedundancyExpert Editor 04/05/2017 at 3:02 pm

If you are up to date with your national insurance contributions and are actively seeking work, you should be able to claim

Rastus Pestus 04/05/2017 at 9:31 am

I recently took voluntary exit (not redundancy) from the Civil service and received c £30,000. I'm not retiring so can I claim JSA?

Billy 04/04/2017 at 8:29 am

I will be made redundant on June 23 2017.I have volunteered for redundancy due to my wife being on pip so I will be her full time carer, what are my entitlements.

Carol2807p 10/02/2017 at 1:18 pm

Both me and my husband have been accepted for vr. My husband will also be taking his pension with his vr as he will be taking retirement. I am only entitled to my vr payment which is less than £16k. We also gave 1 dependant. Our we entitled to any benefits?

RedundancyExpert Editor 29/11/2016 at 11:58 am

If you have been paying National Insurance, your savings should not affect your ability to claim Jobseekers Allowance if you are actively seeking work, please see gov.uk link here which will tell you if you are eligible.

C21 28/11/2016 at 2:06 pm

Hi, My company is relocating to another area of the country and my job has been put at risk. I have been given a redundancy letter with the option to choose voluntary redundancy or redeployment. We have been told that even if we tick redeployment there are not any jobs there for us. There are approx. 10,000 people being made redundant and only a handful of jobs. I want to tick voluntary redundancy but I am concerned that I will not be able to claim JSA if needed. I will initially have over 20k in my bank account but if I cannot find a job before this runs out will I be able to claim Job seekers? Many thanks.

Bali 22/11/2016 at 5:35 pm

I took voluntary redundancy, on the 23 October 2016,work ed for the company for ten years. Only get child benefit. My partner works 40 hours, 225000 per year. I am actively seeking work, am I entitled to any benefits.

RedundancyExpert Editor 12/10/2016 at 12:45 pm

You will be eligible to apply for Jobseekers Allowance if you have paid National Insurance for the past two years and you are seeking another job.

Noeyy 11/10/2016 at 8:19 pm

Hi, thinking of taking my vr, they are lookin around 20, i live on my own, my kids stay with me at the weekends, i would only get around 6000, i have no savings at all either

Tony heath 12/07/2016 at 8:51 pm

I have been offered sevens to leve the company I'm working for can I get any job seekers or any other payments as I'm in a wheelchair
Thanks
Tony

RedundancyExpert Editor 01/07/2016 at 10:12 am

You may be entitled to JSA regardless of your redundancy package, if you have paid NI over the previous two years and you are actively seeking work. However, other requirements may apply here. To find out for sure, you would need to contact the JobCentre Plus or fill in the form, they will let you know pretty quickly if you are eligible to apply.

kaaob 30/06/2016 at 10:25 am

Hi
I have taken VR from my company. My VR package was £10800 and I received 12 weeks PILON on top of that plus holidays accrued. Taking my final salary to 17K. My last working day is 30/06/2016. Is the total amount classed as redundancy or only the VR payment?
Do I need to sign to get my NI paid and would I be entitled to JSA?

Karen

JAC 26/06/2016 at 6:16 pm

Hi, I was issued with a redundancy notice and my last day of employment is 31st August. ( I work in school) last week I was told the redundancy notice has been retracted but I can still take voluntary redundancy if I want to. In January I had a total knee replacement and needed three months off. Due to the way my redundancy notice was handled I'm now signed off with work related stress. I am currently also waiting for a date for my other complete knee replacement surgery, so will need another chunk of time off to recover. Altogether my sick leave is going to go over my allowed time so the time needed for the second op they will only pay me half pay. I'm on my own with a mortgage and bills and half pay will not cover it all. Without the second op I will end up unable to walk. The redundancy package is only three months wages, would I be entitled to benefits until I'm in a position to apply for jobs?

G 22/04/2016 at 10:36 am

My company is making 88 people redundant. I'm classed as "affected" if I ask for voluntary redundancy & am accepted will this affect claiming contribution based job seekers allowance? Thanks

J 02/04/2016 at 8:23 am

I'm taking voluntary Redundancy in July due to ill health. My partner works full time and we have a daughter in Uni. Will I be entitled to any benefits.

RedundancyExpert Editor 29/02/2016 at 12:26 pm

Yes, you can. The benefits you would receive would depend upon your savings and whether your illness can be assessed as disability and/ or whether you may wish to look for another position, in which case you can claim Jobseekers Allowance. Please see EntitledTo which

joey 28/02/2016 at 4:22 pm

I have been off work long term with severe fatigue, heart and liver disease, Voluntary redundancy has came up in work, Can I take it whilst still off and will I be able to claim any benefits.

MC 11/01/2016 at 8:41 pm

I took VR in August after my post was disestablished and the responsibilities condensed into a new role with vast responsibilities. I have recently discovered that the original job has now been given back to one person. How do I stand? Is that legal?

binardoneto 27/11/2015 at 3:05 pm

hi i will receive just under £10,000 voluntary redundancy pay and i have about £6000 savings, my partner is in full time work and i have no mortgage. Can i still claim job seekers allowance or some kind of benefit. i have worked over 30 years mostly full time

nashil 01/06/2015 at 3:42 pm

Hi

If you take Voluntary redundancy as opposed to compulsory redundancy and the payoff is more than £16K will I be sanctioned by DWP if I claim contribution based JSA as that may be seen as making myself redundant rather than being made compulsory redundancy?

Regards

RedundancyExpert Editor 01/06/2015 at 11:43 am

@Em - I have included a link to Turn to Us link here which should be able to help calculate your entitlement.

Em 28/05/2015 at 1:40 am

Hi
I am considering VR. I will receive less than £16000. My husnand weeks full time but we cannot survive solely on his wages as we have a mortgage and the usual gas electric bills. We have two young kids under the age of seven, so going back to work that will pay enough for childcare will be difficult. Will I be eligible for any financial support to help towards mortgage and bills?

lisat80 15/01/2015 at 4:56 pm

Hi, I have been offered 5 thousand pounds voluntary redundancy. I am a single patent with 2 boys. Would I be able to get tax credits/jsa till I find new employment??

Cheekablue 27/12/2014 at 1:48 pm

Hi
I'm 42 and have just being made redundant, and am getting more than £16k in redundancy payment. I'm already doing a part time degree so can't really get another 'proper' job as my hours will vary over the coming months. I'm therefore planning to try to work freelance - I'm already registered for tax. I'm not expecting to be able to claim jsa or anything - I'm going to try to make my own way - but would it be worth at least letting the Job Centre know I'm unemployed in case I need help later, or might they pay my NI contributions? I don't really want to enter the system if it means signing on every week and having to attend pointless numeracy classes.
Thanks

carolyn 23/10/2014 at 12:48 pm

hi i have been made redundant after working for a total of 34 does this affect my ni level for my pension , would i need to sign on to keep this up.

Lacey 02/09/2014 at 7:51 pm

I have been offered voluntary redundancy from work, which may be approximately £17.000.00. I have no savings only debt. I have 2 children. 15 yrs & 10 yrs.
I work 24hours per week.

I currently receive £110 pw tax credits and child benefit.
Would I be entitled to any financial assistance if I accepted the redundancy package
I would look for another job but in the interim I would have to live off the redundancy pay.

I am a single mother

Thank you

Sandancer 31/07/2014 at 1:14 pm

I have been offered VR for one of the two part time jobs I have in local government. My VR will be just under £8000.00. I have some savings £6000.00 which is essentially set aside to help pay the shortfall of my endowment mortgage which is due for repayment in December 2014 and I plan to use VR money to pay off the remainder. My wife works 11hrs/week in a local supermarket and I will continue to work for 14.8hrs/week. Will it be possible to claim any benefits at all?

gerry Editor 30/07/2014 at 11:05 am

@Kay, you would be better to pay your debts off first before you claim for benefits, as then they would only take into account what is left of your redundancy. As your redundancy payout was £11,000 you would still be entitled to some benefits as the cap is £16,000 - I don't know if this differs in Scotland though.

Kay 29/07/2014 at 10:18 pm

Hi,

I have recently been made redundant. The money I receive for redundancy pay and shares (which I have been forced to sell as leaving the company) will take me to around 11k. I however am currently under the das scheme in Scotland and have outstanding debt of around 6k. Paying this money off is obviously important but it would leave me very low on savings to live on. Would my savings bracket for claiming benefits take into account the full 11k or would they count my savings after this debt is paid off.

derek 17/07/2014 at 10:17 am

Hi, my employer offered VR and I took it as I was recently relocated and my journey has doubled (my car fell apart on the way to work the other day due to the mileage).
I am getting just under £20k, but I will be using atleast half to pay off debts (new car, overdraft etc). I reckon I will be left with just under £10k. I plan on looking for work, but I also want to take some time to retrain to get a better job.
I have already checked that I am entitled to have my course fees covered, but will I be able to claim benefits? I am a home owner, and single, but share the mortgage with a friend who works. Am I entitled to any countil tax reductions or martgage help?

Rayelle 04/07/2014 at 8:54 am

I have just turned 60 and have opted to take VR - with my company pension payout and the VR I expect to receive about £26,000 - I cannot receive state pension till I'm 66 - my husband is in full time employment and earns a good salary. Will I be able to claim any benefits - I don't want to go back to work as I have worked since being 15 years old

Leah 03/06/2014 at 9:41 am

As your redundancy will be under £16,000 you should still qualify for tax credits, although you might not get the full amount. You should call the tax credit helpline and ask them for an estimate or go to their website and fill in the calculator form.

xxxx 02/06/2014 at 5:27 pm

Hi my employer has offered voluntry redundancys if i should be successful i should receive under 11,000 i am a single parent with 2childten and claiming tax credits would I still qualify.

busybee 02/06/2014 at 1:59 pm

I have taken VR of 8k, worked in fulltime employment for the last 18 yrs. my husband works fulltime 18k, we have 2 toddlers who I get child benefit for. we have mortgage and bills expenses, no savings between us.
Can I apply for jobseekers allowance/ and any other benefits- working/child tax credits etc

I am looking for work but it may take a while to get something.

Pedro 04/01/2013 at 1:58 pm

In September I took early retirement and received around £60.000 which I have used to pay most of my outstanding mortgage. Can I now claim any benefits as I could take on another job though I would be limited as I have problems with my breathing.

Peach 01/08/2012 at 8:53 pm

Hi
I'm receiving £13k for voluntary redundancy soon. I have no other savings.

We own our home plus We have a second house that we rent out. We have approx £10k equity & receive rental income which pays for the mortgage (interest only) plus approx £195 extra which goes into paying things for the house/ use towards our income.

We have 2 children. My hubbie earns approx 28k.

Will I be entitled to claim benefits?
Where is the best place to save the redundancy money?
Would it be best to pay off £2k credit cards straightaway? (interest free at mo)

Thanks!

Shannon 19/07/2012 at 4:57 am

Hi, I am currently on maternity leave. My company has put our section at work under 30 days consultation period. They are looking for people to volunteer redundancy. People will leave the company in 2014. If I volunteer now but I then become pregnant does my company have to pay me all my maternity pay even though I volunteered to take VR?

Mike 30/05/2012 at 12:15 pm

When you have worked in civil service or police and reached a high rank you may be elligible for a peerage then you can have another nice earner from the taxpayer which lasts till you peg out, all great fun.

Ask Redundancy Expert a question

Ask our editorial team a question and we will reply with our advice. Tell us as much about your situation as you can: the more detail you give, the more useful our answer can be.

You do not need to use your real name. Please do not include your full address, phone number, email address, or the names of other people. We may edit or remove identifying details for privacy and legal reasons.

Comments are moderated before publication.