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    • Thanks for your reply dx    no I haven’t moved, in all honestly I don’t think they have sent the NOA, hence why I have asked for proof. It was suspicious on the phone as they couldn’t find the letter and then couldn’t attach it to an email    I have no problem paying the £75 if they prove they sent it.    im disputing the £235 as I don’t think they’ve follow the COVID guidelines either. I’m at work and my sister answered the door who is deemed vulnerable and is shielding. I would have told them that if they done a risk assessment (I believe the ministry of justice require it)    im a little confused with what you mean by the NOA running out? They have told me they sent it on the 14th? 
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    • can you please refrain from using any hosting sites now please   read our upload guide carefully (esp about using pdfreducer websites) and pop the PDF up here.   can you also rotate the images!!   thank you
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JSA and possible settlement for unfair dismissal


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I've read on the Benefits Handbook that both ET awards and settlements for unfair dismissal are counted as 'earnings' rather than capital. Can anyone clarify what this means in practical terms if you are in receipt of JSA?

 

Earnings refer to a specific period of time when you were being paid, however, this would be a lump sum, hopefully substantial, but paid all in one go, how would the DWP consider these 'earnings'? I always thought it would be regarded as capital and there would be deductions according to the amount, or no benefits paid if over £16k, at least not until balance went down. I'm confused seeing it's regarded as earnings.

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I've read on the Benefits Handbook that both ET awards and settlements for unfair dismissal are counted as 'earnings' rather than capital. Can anyone clarify what this means in practical terms if you are in receipt of JSA?

 

Earnings refer to a specific period of time when you were being paid, however, this would be a lump sum, hopefully substantial, but paid all in one go, how would the DWP consider these 'earnings'? I always thought it would be regarded as capital and there would be deductions according to the amount, or no benefits paid if over £16k, at least not until balance went down. I'm confused seeing it's regarded as earnings.

 

 

I can only assume that DWP would average out the settlement over the claim period. Universal Credit, however, seems to work on a monthly basis but my guess is they would still take the monthly average, resulting a massive overpayment.

 

I think it might be worth getting off benefits a few weeks before the settlement. Take some temp work or something. Then again, how would DWP react to that is anyone's guess.

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JSA paid since the dismissal is recouped from the award before it is paid to you. My understanding is the the Judge will state the period that the award pertains to - for instance 26 0r 52 weeks and any award includes compensation for lost wages during that period, therefore you wouldn't be able to claim JSA during that period as you are considered to have earnings.

We hang the petty thieves and appoint the great ones to public office ~ Aesop

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JSA paid since the dismissal is recouped from the award before it is paid to you. My understanding is the the Judge will state the period that the award pertains to - for instance 26 0r 52 weeks and any award includes compensation for lost wages during that period, therefore you wouldn't be able to claim JSA during that period as you are considered to have earnings.

 

What about the housing benefit or housing element of UC?

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What about the housing benefit or housing element of UC?

 

I don't see why it wouldn't be treated as income for these, but maybe a housing benefit expert could stop by and confirm.

We hang the petty thieves and appoint the great ones to public office ~ Aesop

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Now when I was involved in a tribunal we settled out of court.

 

A distinction was made that the settlement would comprise of "Settlement Monies" which did not attract tax or deductions. This was the main advantage with not going to a full hearing. Also for benefits it was treated as capital this way.

 

Maybe someone with more experience can clear this up :)

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The SabreSheep, All information is offered on good faith and based on mine and others experiences. I am not a qualified legal professional and you should always seek legal advice if you are unsure of your position.

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http://www.hmrc.gov.uk/manuals/eimanual/EIM12950.htm

 

Not the most user friendly site but appears to have a lot of information on it Re: Tax (And it is more complicated than I thought)

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The SabreSheep, All information is offered on good faith and based on mine and others experiences. I am not a qualified legal professional and you should always seek legal advice if you are unsure of your position.

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Thanks for all the replies.

 

JSA paid since the dismissal is recouped from the award before it is paid to you. My understanding is the the Judge will state the period that the award pertains to - for instance 26 0r 52 weeks and any award includes compensation for lost wages during that period, therefore you wouldn't be able to claim JSA during that period as you are considered to have earnings.

Yes, my solicitor explained all that to me, i.e. the respondent would have to pay the full award but they would split it between myself and the DWP, the amount of JSA I received would be paid back to the DWP, the remainder to myself, depending on how many weeks the award was for.

 

Now when I was involved in a tribunal we settled out of court.

 

A distinction was made that the settlement would comprise of "Settlement Monies" which did not attract tax or deductions. This was the main advantage with not going to a full hearing. Also for benefits it was treated as capital this way.

 

Maybe someone with more experience can clear this up :)

I was also told that recoupment only applied to an ET award and not a settlement.

 

Having said that, the above refers to the past, i.e. benefit I'd have received when I get the award or settlement, my question referred more to the future, i.e. if I was still unemployed at the time, I'd suddenly have a bit of cash going into my bank account which would presumably have to be reported to the DWP. If it was counted as capital it would be easy to figure out, i.e. no benefits if more than £16k until balance went down to below £16k, otherwise deductions from benefits in accordance with the amount of capital, however, reading that such awards are considered as EARNINGS left me wondering what the DWP would do!

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What the DWP would do is if the 'earnings' are greater than JSA, taking into account any disregards, the claim would be ended. You would be able to reclaim when the period covered by the settlement has passed, I would think.

We hang the petty thieves and appoint the great ones to public office ~ Aesop

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