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I've been trawling through the net trying to find a definitive answer to this one, but seem to be getting nowhere.
I was recently made redundant when my workplace closed, but was fortunate enough to get a fairly good redundancy payment of c£55k. Prospects of getting another similar job are slim, so this money has to last as long as possible. I intend to keep the child maintenance payments in line with the CSA schedule to ensure my kids don't suffer, but this will eat into my redundancy money fairly rapidly as I now have no income.
What I really want to know is - can the CSA demand I pay over 20% of my net redundancy pay as they do with income?
The CSA will take into account assets over 60k, so yours doesn't come under that, otherwise it's 20% of income or a flat rate of 5 per week if you are on benefits. However, are you currently going through the CSA at the moment? If not, then you could fall under the new rules - nannyJane has posted a few threads on the new system which has now started.
Many thanks actd. Yes, I'm currently going through the CSA. They actually rang me to get details of when I finished work and whether I was claiming benefits. As I'm not, they told me I had nothing to pay. No mention of the redundancy payment!
Personally, I'd look at claiming unemployment benefit and pay the flat £5 per week maintenance. I would guess from your redundancy package that you have paid plenty of tax in your time, so you are more than entitled to the benefits until you get another job, plus it means your children get £5 per week maintenance, effectively from the state.
No - you can have 6 months contribution based JSA which is not means tested, although after 6 months you'd have to apply for income based JSA which is means tested.
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