Notice pay and ESA — Scope | Disability forum
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Notice pay and ESA

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RSISolutions
RSISolutions Community member Posts: 128 Courageous
How does income based ESA  treat a tax free notice pay payment from an employer? Is this counted as 'compensation' and ignored? If so, is it then added to your savings, or is it ignored there too?

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  • BenefitsTrainingCo
    BenefitsTrainingCo Community member Posts: 2,621 Pioneering
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    Hi RSISolutions,

    If your employment ends before your entitlement to benefit begins, any payments that count as earnings (wages, holiday pay, and pay in lieu of notice) are ignored as income for that benefit (in most cases). If that money has added to your savings then it would be treated as capital.
    If you stop work before your benefit begins but your employment has not ended then payments are treated differently, so if this is the case please let us know and we can advise further.

    Lee
    The Benefits Training Co:

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