Benefits for people who are made redundant

Benefits and Tax Credits on Redundancy

If you have been made redundant, there are a range of benefits which you may qualify for depending on your circumstances. Some benefits depend on your National Insurance Contributions (i.e. contributory benefits) while others are means tested and will depend on the level of your income and capital. The benefits you may be eligible for include:

Jobseeker's Allowance (contributory)

Contributory Jobseeker’s Allowance replaced Unemployment Benefit for people who are required to ‘sign on’ for work. To claim contact: Tel. 0800 055 6688. Claim early as delay may cost you benefit. You must be available for and actively seeking work. It is paid for a maximum of 26 weeks.

Income Support and Jobseeker's Allowance (income-based)

If you are required to sign on for work, you may qualify for income-based Jobseeker’s Allowance (IBJSA). If you are exempt from signing on, you may qualify for Income Support or, if you’re ability to work is limited by ill health or disability you may qualify for income-based Employment & Support Allowance (IBESA), or if you or your partner are 60 or over, Pension Credit. To qualify for income-based JSA, Income Support or income-based Employment & Support Allowance, you and your partner (if you have one) must be on a low income and not have more than £16,000 capital. There is no upper capital limit for Pension Credit, but if you have over £6000 you will be deemed to have £1 weekly income for every £500 over this amount. Income-based JSA & ESA, Income Support and Pension Credit can also provide some assistance with certain mortgage and other housing costs. To claim IBJSA, IBESA and Income Support contact: Tel. 0800 055 6688. To claim Pension Credit contact the Pension Credit Application line on: 0XXX XX 1234. Your application form will be completed over the telephone and sent out for you to check the information and to sign if you are sure it is correct.

NB: Statutory redundancy payments count as capital. If you are refused a means tested benefit because you have too much capital you may qualify at a later stage. As your capital reduces - it is a good idea to keep records and receipts to show the Jobcentre Plus Office that you did not deliberately dispose of capital in order to qualify for benefit.

Housing Benefit/Council Tax Benefit

Housing Benefit and Council Tax Benefit may assist you with rent and council tax respectively where your income and capital are low. If you are awarded Guaranteed Pension Credit, Income Support or Income Based Jobseekers Allowance or Income Based Employment & Support Allowance you may be passported to full Housing and Council Tax benefits. Housing and Council Tax benefits are claimed from Scottish Borders Council, Revenues and Benefits section. Forms are available at Council Contact Centres or Tel: 01835 824000 for a claim pack.

Tax Credits (Child Tax Credit and Working Tax Credit)

Child Tax Credit: (CTC) If you have at least one dependant child, aged up to 20 if in non-advanced education, you will be entitled to CTC.

Working Tax Credit: (WTC) If you, or your partner (if you have one) normally work 16 or more hours a week or more, you may be entitled to WTC.

Change of Circumstances: If you are already claiming CTC and/or WTC you should notify HM Revenues & Customs (HMRC) of any change as this will affect the amount you are entitled to claim. To claim or notify HMRC of any change, contact tel. 0800 300 3900 or online at www.hmrc.gov.uk.

Incapacity Benefit

If you are unfit for work and your GP can confirm this with medical certificates, you may qualify for Incapacity Benefit (IB). Entitlement may also depend on your National Insurance Contribution (NIC) record. You cannot make a new claim for Incapacity Benefit from 27/10/08. IB is replaced by Employment & Support Allowance (ESA) from 27/10/08. Existing claims to IB will be moved over to ESA by 2013.

Employment & Support Allowance

Employment & Support Allowance is the new benefit from 27 October 2008 paid to people whose ability to work is limited by ill heath or disability. It replaces both Incapacity Benefit and Income Support paid on the grounds of incapacity and it is a single benefit. It has two components: a contributory allowance, which has similarities to Incapacity Benefit, where the claimant must have paid the correct National Insurance Contributions (NIC); an income-related allowance, which has similarities to Income Support paid on the grounds of incapacity which is the means-tested element. There are 2 phases in Employment & Support Allowance: The Assessment phase is for the first 13 weeks of a new claim (except for those who are terminally ill); The Main phase is from the 14^th week where the ‘work capability assessment’ (WCA) test is satisfied. The ‘work capability assessment’ is undergone during the Assessment Phase and will determine which group applies for the Main Phase. There are 2 groups: the Support Group and the Work-related Activity Group. In the Support Group a claimant has limited capability for work-related activity under the ‘work capability assessment’. People in this group do not have to undertake work-related activities and they receive a higher rate of Employment & Support Allowance than those in the work-related activity group. In the Work-related activity group the claimant must meet work-related conditions.

for Welfare Benefits/Money Advice (pdf 105kb). The information contained in this form can be used to assess your eligibility for benefits. If you would like help to complete the form, please contact the Welfare Benefits Service (see below).

The benefits and tax credit systems are complex and it is not possible to describe all the rules that may apply to an individual's circumstances. It may be possible to receive more than one of the benefits listed above at the same time. The golden rule is, if in doubt, claim. Do not delay in making a claim as it can be difficult to backdate late claims.

If you are refused benefit you usually have the right to ask for a review or an appeal. Should you need further advice you may wish to contact Scottish Borders Council Welfare Benefits Service or your local Citizens Advice Bureau.

Useful contacts:

Welfare Benefits Service Tel 01896 849802

Jobcentre Plus Office (local) Tel 01896 612400

Jobcentre Plus Claim Centre Tel 0800 055 6688

Pensions Service Tel 0XXX XX 1234 or 0845 606 0265

HMRC Tel 0800 300 3900

Trading Standards Tel 01896 823922

More information

If you would like to speak to someone for more information about your entitlement to benefits, please contact:

your local Social Work office
Welfare Benefits Service
East End
Earlston TD4 6HU
Tel. 01896 849802