§ Liz BlackmanTo ask the Secretary of State for Social Security (1) if he will implement a clawback mechanism so that ex-employees from businesses which have gone into liquidation have access from the date of their redundancy to jobseeker's allowance and other benefits; [64518]
(2) if he will ensure that ex-employees of a firm going into receivership are able to receive jobseeker's allowance and other payments from the date of their redundancy while they await their claim for redundancy payment and compensatory payment in lieu of notice to be processed, with the introduction of a clawback mechanism, if appropriate. [64565]
§ Angela EagleWe are aware that, under existing rules, if money is owed from an insolvent employer, full benefit cannot always be paid immediately to ex-employees claiming Jobseeker's Allowance or Income Support, although payments can be made to avoid hardship.
Since this problem came to our attention, we have been working to simplify the complex legislation in this area and we are currently considering proposals for changes to the relevant benefit rules.
Entitlement to the other income-related benefits (Family Credit, Disability Working Allowance, Housing Benefit and Council Tax Benefit) is not affected by unpaid earnings when an employer goes into liquidation.