Maintenace grant, question about redundancy payment.

JenniFurr

Since the previous tax year ended my father has lost his job. I've checked the change in circumstance with the VEC and it will be taken into account. If they take my father new carer's benefit and my mother's part time job I should be able to get the full top up grant. BUT my father received statutory redundancy from what I can figure was around €20,000 (I'm not sure exactly, they don't exactly share this info with me). Will this redundancy affect my application?

jano1

AFAIK, your Dad's redundancy will be divided by the number of years he worked with that particular employer and that amount will be taken into account. For example if he worked for that employer for 10 years and received €20000 in redundancy, then €20000/10 = €2000 and that is the figure they use.

JenniFurr

Wow, how sure of this are you? I only ask since I'm not sure if I can even go to college if I don't get a decent amount from the VEC.

jano1

I rang for advice on the same issue to my local VEC and that's what they said. If you look at the app form section 10- "income from sources not shown elsewhere" and accompanying notes page 4:

"Redundancy
The amount to be entered in relation to payments on cessation of, or change in conditions of employment, is the gross amount received, divided by the number of years in the employment - no deduction for threshold relief is allowed. Please show your calculation of this amount, supported by a letter from the employer stating the amount paid and the number of years of employment.This should be entered in Section 10 page 11-
Income from sources not shown elsewhere."

If circumstances changed in 2009 for the worse, then this year's income including the part of the redundancy as explained will be used to determine eligibility. You still have to fill in all the 2008 info and then also give the new income details for this year.

JenniFurr

Excellent! thank you so much, my local VEC were not helpful at all! You are a life saver, thanks again, you've really put my mind at ease.

jano1

You're welcome. Best of luck!!:):):)