Will my redundancy pay affect my benefit entitlement? Your redundancy payment won't be treated as income when working out how much benefits you can get. It will be treated as capital. This means that the amount you get in redundancy payment will be added to any other savings you have.

Does a redundancy payment count as income?

Any payments that meet the conditions of a genuine redundancy are tax-free up to a limit based on your years of service with your employer. ... Your employer will report the tax-free amount as a lump sum on your income statement or PAYG payment summary – individual non-business.

Does voluntary redundancy affect benefits?

Voluntary redundancy will in most circumstances be classed as any other type of redundancy when it comes to claiming benefits. You should be able to start claiming benefits from the day you are made redundant.