§ Mr. Laurence RobertsonTo ask the Secretary of State for Social Security how long an employee made redundant has to wait before becoming entitled to claim Jobseeker's Allowance; what other benefits are available during this period; if the same time limit applies if the employee has to make a claim to the Redundancy Board; what plans he has to review this system; and if he will make a statement. [91427]
§ Angela EagleThe length of time a redundant employee has to wait before he becomes entitled to Jobseeker's Allowance depends on what payments he is due from his ex-employer. Any holiday pay payable within four weeks of the termination of employment or pay-in-lieu of notice will remove entitlement for an equivalent period to that in respect of which the payment was made. Lump sum statutory redundancy payments do not affect contribution-based JSA but may affect income-based JSA. The rules which apply if the redundant employee is due, but does not receive, these payments from his ex-employer and has to claim compensation from the Redundancy Payments Service have the same effect.
The availability of other benefits during this period will depend on the individual's circumstances. For those who have not received the monies due from their ex-employer, there are safeguards to protect those most in need: payments of JSA can be made if hardship would otherwise result.
We have no immediate plans to review the rules for those who receive payments from their ex-employers. We are, however, aware of the effect of the JSA rules 312W on those who do not receive the monies due from their ex-employers and are considering the matter in conjunction with the Department of Trade and Industry to see whether any changes can be made. There are, however, complex issues to be resolved.