Have you been made redundant as a result of COVID-19?
Unfortunately, our Family Benefits Advice Service is regularly speaking with parents who have experienced a decrease in household income as a result of COVID-19, whether through a reduction in income or working hours, or because they have been made redundant. Our skilled advisors can identify what financial support you may be entitled to at this difficult time.
Financial support you may be entitled to
There are different forms of financial support that you may be entitled to if you have been made redundant. If you have been working, as an employee, over the past couple of years and have paid enough in National Insurance Contributions you may be entitled to New Style Jobseekers Allowance (JSA) for 26 weeks, while you are continuing to look for work. Alternatively, you may be entitled to Universal Credit as a new claimant or a claimant with a change in circumstances. It can be complex working out what is the best form of support for your circumstances, but our advisors can help.
Support with childcare costs
If you are made redundant then this may affect your entitlement to support with your registered childcare costs.
Universal Credit: If you cease to be employed then you will be entitled to claim help towards your childcare costs for the assessment period in which you ceased work and the subsequent assessment period only. You should report any changes through your online journal.
Tax Credits: If you cease to be employed then you will no longer be entitled to claim help towards your childcare costs. You must alert Tax Credits to this change in your circumstances.
Childcare Vouchers: This scheme has closed to new entrants therefore, if you are made redundant, you will no longer be eligible to pay into the scheme through a new employer. You can continue to use any balance of Childcare Vouchers in your account.
Tax-Free Childcare: You must reconfirm your eligibility for Tax-Free Childcare every three months and you can usually only get Tax-Free Childcare if you and your partner (if applicable) are in work, although there are some exceptions. You can apply if you’re starting or re-starting work within the next 31 days.
Our Family Benefits Advice Service can offer free advice and guidance on the financial support available to families at this challenging time, including around parental rights and entitlements, support with childcare, and social security benefits. To speak to one of our advisors call 028 9267 8200.
