Our client gets IS, IB, DLA (hrcc/hrmc). She has now been offered medical retirement with 12 weeks' pay in lieu of notice. Accepting the pay would bring her above her applicable amount for those 12 weeks.

I have three questions on this:

1) if she accepts the 12 weeks' notice, will her IS claim just be superceded (i.e. ended)?

2) Or could/should the DM suspend the IS claim instead for those 12 weeks under reg 16 (3)(a)(ii) of the SS (D&A) regs and then unsuspend it once the notice period ends, under Reg 20 (i)(a) of the same? (I'm hoping this is possible, with reference to a different scenario in CA/3800/2006).

3) if 2) is not possible and she then decides to waive pay in lieu of notice, i.e. resign with immediate effect, will the pay she's decided to waive be treated as notional income?

thanks

Paul