Work Separation agreement impacting UC/ WCA

Please help,

I am beyond exhausted from all the hoops I’ve already had to jump through for various benefits and agreements.

I received monies from a work separation agreement, nothing outstanding. 4 weeks of holidays, pay in lieu of stopping work (4 weeks) and a minimal termination fee. I appreciated that there would be an impact on my UC however I am SO confused as to their responses/ lack of responses since I have entered this info.

My UC has been completely stopped this month and my council tax has been fully re-instated after being adjusted, in addition my incapacity for work was stopped. Now part of it I can accept, but being neuro/ autistic it’s driving me insane that they are evading or basically just not answering my questions, plus they only answer one question per day.

I have not worked since last year, I was put on longterm incapacity for work, received UC and my CT was reduced.
I received my payment, submitted this info. The amounts and why in my journal, I was then told to enter them all as income.

However, the outcome is as I stated here. The payment in lieu of finishing work, yep I can take that as income, however, if I had been working I would have taken holidays but I have been forced into not working as a result of the work situation and therefore had to receive this as monies, not a choice. My termination fee is just that, not income.

From this the will not confirm if this will impact my next months benefit, they have taken away my incapacity to work payment (I have not worked). The guy just keeps saying he doesn’t understand what I am saying and that no mandatory reconsideration is needed as I have earnings for the month and not savings. However, I noticed on the statement explaining things saying ‘ £6000 of your monies, saving and investments will not impact’. To me this means I can receive/ have up to £6000 before being penalised?

Please if I am wrong, can you help me understand? If you see this and think - it’s not worth pursuing a Mandatory Reconsideration that’s cool. I just don’t know how much I have in me to go through all these processes after the year I have had.

Any help, thank you.

Thank you for taking time to reply and apologies re the double post. I was pretty stressed and made an error. Thank you for your time. 🙏

My understanding is that income counts in the month it is received, and after that it becomes savings.
So If you got the payment in period 1, that is income for period 1, and results in reduction to UC under the monthly income rules. But in the next period, that amount (or whatever is left after you have paid bills etc with it) becomes savings and is added to your existing savings. Then the savings rules apply.