Does redundancy pay count as income?
Your redundancy payment won’t be treated as income when working out how much benefits you can get. It will be treated as capital. This means that the amount you get in redundancy payment will be added to any other savings you have.
Is it better to quit or be made redundant?
If you’ve worked for your employer for over 2 years you’re usually better off waiting to be made redundant, as you’ll probably get a redundancy payment. If you want to stay with your employer, they might offer you a new job.
Is the first 30k of redundancy tax free?
There is an exemption from income tax on payments up to £30,000 from one job. If you have more than one job the exemption applies to each job – see the example of Jack.