HL Deb 08 July 1963 vol 251 c1178

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether severance payments paid to redundant employees under the terms of a trade union agreement prejudice the payment of unemployment benefit to the redundant worker.]


My Lords, the decisions of the National Insurance Commissioner have distinguished between payments which are compensation for loss of employment and those which are compensation for loss of remuneration. Title to unemployment benefit is not affected at all by payment of compensation for loss of employment. Unemployment benefit can also be paid in addition to compensation for loss of remuneration, but only if the amount of compensation, together with the single person's rate of benefit, does not amount to more than two-thirds of the remuneration lost. Whether a payment of compensation under a particular agreement precludes the payment of benefit is a matter for decision by the adjudicating authorities under the National Insurance Acts.


My Lords, I thank the noble Earl for his Answer. I will take the opportunity to study it in detail later. I have taken note of the fact that severance payments, being compensation for loss of employment, will not prejudice the redundant worker who signs on for unemployment pay. I am glad indeed to have that assurance.