Sorry to hear that you've been made redundant.

You should be able to keep the statutory element of any redundancy payment, it is only any contractual amounts on top that may be taken - that is the guidance issued by the Accountant in Bankruptcy to trustees and is based on case law.

The above is taken from a post that Kevin replied to.

Hi, sorry to hear you've been made redundant. I was in that position a while back. Are you sure you only got a statutory payment?

Below is what the law states you should get. If you got over £35K as a payment then you would have paid tax on anything over £30K, with 25 years service that would mean you were earning over £1000/week. Is that right?

You'll normally be entitled to statutory redundancy pay if you're an employee and you've been working for your current employer for 2 years or more.
You'll get:
half a week's pay for each full year you were under 22
1 week's pay for each full year you were 22 or older, but under 41
1 and half week's pay for each full year you were 41 or older
Redundancy pay (including any severance pay) under £30,000 isn't taxable.

Welcome to the forum iar1768.

Are you sure that this full sum was statutory?

The amount that is statutory would usually be yours to live on while your seek new employment.

Any extra is likely to be used to help repay your creditors. That would include amounts received due to beneficial clauses in your contract, negotiation or an additional sum offered by your employer.

You'll need to run everything by your trustee to know exactly where you stand.

Really sorry to hear you have been made redundant iar. I do hope you find something suitable soon.

Just to add to information given by Saabrina....

Maximum statutory amount per week is £464. Number of weeks is capped at 20 and total maximum statutory redundancy is currently £13,500, so it looks as if you have been given an enhanced payment which is perfectly acceptable, but it would seem to be above the statutory which I believe in key in your situation.

Sorry, I cannot comment on what the rules are in a Trust Deed.

Hi again.

It certainly sounds as though your redundancy pay has been made up of a number of different elements from the comments of others, rather than being solely statutory.

Best to run it all by your trustee I think you that you get some certainty.

Hi iar1768. sorry to read about your redundancy situation.

Some excellent information already from those who have posted on this thread. Unfortunately I'm afraid you will find that a large part of your redundancy payout is on top of the statutory figure and therefore this part may be required to be paid over into your Trust Deed.