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Tax implications of redundancy payments

You can read about the tax liability on your redundancy payment here. Link to Do I have to pay tax on my redundancy payment? In your redundancy rights section

Benefits implications of redundancy payments

You can read about benefits, and how to apply for them here. Link to Claiming benefits: do I need to sign on for the dole?

Do I have to spend my redundancy payment before I can claim benefits?

If you are claiming contributions-based Jobseekers’ Allowance, your redundancy payment will not affect your entitlement. However, if you are intending to keep your redundancy payment intact (eg as savings) then it may well affect your entitlement to income based (means-tested) benefits. Read more about this on Redundancy Expert.