Payment in Lieu of Notice and benefits

astondog | 12:29 Wed 11th Jun 2008 | Jobs

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A good friend of mine has had a stroke and they found he also had MS so has had to give up work as a hospital orderly (he's been there since it opened in 1990). He has been given money in Lieu of Notice and the Dept. of Works and Pensions have said that they will deduct the money from his benefit.
I accept that money in Lieu of Notice is classed as earnings but surely the hospital paid him off as he is to sick to continue.
Thank you

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factor-fiction

The DWP will be right. If they are giving him 3 months pay (for example) in lieu of notice then they are simply paying him early rather than paying it monthly until his notice expires. He shouldn't also get benefits for that 3 months period. If he is getting beenfits the DWP would reduce it by the amount he earns, just as they would do for anyone claiming benefit whilst earning.

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