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Missed that bit. They haven't changed.

 

When the employer sends the JSA200 form back, it will state whether any pay-off is PILON or a redundancy payment. If someone gets £3900 in a redundancy payment, then that would be classed as capital. If they received £3900 as 13 weeks PILON in one lump sum (taxable and subject to NI), it will be classed as earnings, and the person will not be classed as unemployed until the PILON period runs out, and will therefore not qualify for JSA, whether conts based or income based.

 

The rules changed in October 2007. Payments in lieu are now classed as capital.

 

http://www.dsdni.gov.uk/dmser_vol6_44-2.doc

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Ignore my previous post I've found a circular that confirms you are correct (A10/2007).

 

You learn summat new every day!

 

If you mean this document, that relates to Housing Benefit and CTB in the main. The important part is para 16, as far as JSA is concerned. For working age income related payments, PILON is still taken into account.

 

With JSA©, capital isn't taken into account, and never has been. The thing is though, whilst in a PILON period, the person is classed as employed and can't claim JSA anyway.

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As I said earlier, the rules regarding PILON changed in 2007. http://www.opsi.gov.uk/si/si2007/em/uksiem_20072618_en.pdf

 

Read 7.2 then. Just the same as para 16 in the circular I provided earlier. I'll reproduce it for you.

 

7.2 The working age IRBs ignore last wages but take termination payments into account:

• In Income Support and Jobseeker’s Allowance when deciding the date from which benefit can be paid; and

• In HB and CTB as earned income over the relevant period.

 

If you read 7.1 .....

 

7.1 Presently, on new claims to the pension age IRBs, all final earnings, including termination payments such as holiday pay and pay in lieu of notice are ignored. Similarly, in all the IRBs and in contributory based Jobseeker’s Allowance, where a customer has left work due to retirement all final earnings are ignored.

 

..... you'll see that PILON is a termination payment. As outlined above (in 7.2, as the man isn't of pensionable age), this will be taken into account as earnings, and that the person is still classed as employed, and will therefore not qualify for JSA.

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Read 7.2 then. Just the same as para 16 in the circular I provided earlier. I'll reproduce it for you.

 

 

 

If you read 7.1 .....

 

 

 

..... you'll see that PILON is a termination payment. As outlined above (in 7.2, as the man isn't of pensionable age), this will be taken into account as earnings, and that the person is still classed as employed, and will therefore not qualify for JSA.

 

 

happyhippy............look, if you think I'm wrong, speak with your local Decision Makers in any Jobcentre Plus office and then come back and tell me I'm wrong. OK?

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