My client was made redundant just as she was about to become entitled to Statutory Maternity Pay. This was eventually settled with the help of a lawyer and all of her SMP was paid as a lump sum.

During this time she did not claim IS or JSA and is now trying to have a claim to Housing Benefit and Council Tax Benefit backdated.

Am I right in deducing that her SMP is classed as income rather than capital, even though it was paid in a lump sum, or does anyone (hopefully) beg to differ?

My view is that you are right - it is income, attributable to the period(s) it is in respect of.

Not sure if this is at issue, but the term "redundancy" needs to be broken down for HB/CTB purposes.

SSP / holiday pay / pay-in-lieu all count as earnings. However, any REDUNDANCY element is capital, so long as it does not include any of the aforementioned elements.

Hope the above helps.

Regards

Thanks Kevin.

I don't think redundancy, holiday pay or pay-in lieu were ever claimed and it appears it may be too late now as the former employer has shut shop and done a bunk abroad!

Has the client tried claiming redundancy etc. from the National Insurance Fund? I don't know the details or whether a claim would succeed in these circumstances but, if he/she hasn't claimed it might be worth a call to the Redundancy Payments Office 0845 145 0004.

I saw her only briefly yesterday and will see her again tomorrow so I'll find out more then and take on board your comments. Thanks to you both.

and get authority from the client for the lawyer to talk to you, so you can check what was included in the lump sum the cleint received ...