Hi there, as per the topic title I would be grateful if someone could confirm whether a redundancy payment due to my wife (here on FLR) which will come from the National Insurance Fund would be prohibited due to the "no recourse to public funds" stamp on her Visa / Bio Card?

Normally, redundancy payments are made by the employer, so there would be no question of recourse to public funds. If the employer is insolvent, then I don't know. Logically, they should be covered by the insurance nature of National Insurance, and should not count as recourse.

I think you can argue that they are not public funds for this purpose.

Indeed, usually NIC based benefits do not count as public funds under the immigration rules; if you've paid sufficient contributions you are entitled to claim the benefit.

Have a read of Public Funds; pages 5 and 6 for what does count as public funds under the rules.