Below is the text of Mr Major’s written Parliamentary Answer on Redundancy Pay on 28th November 1986.
Mr. Geoffrey Robinson Asked the Secretary of State for Social Services if he will consider a revision of his Department’s regulation 9(2) (a) concerning redundancy pay.
Mr. Major Lump sum redundancy payments are treated as capital for supplementary benefit purposes and are not affected by regulation 9(2)(a) of the Supplementary Benefit (Resources) Regulations 1981 (SI. 1981 No. 1527) which covers the treatment of earnings and other income. Future arrangements for the income support scheme are currently under consideration.