Financial Help After Redundancy

First 48 Hours — Immediate Steps

1. Check Your Redundancy Pay

By law, if you have worked for your employer for 2+ years, you are entitled to statutory redundancy pay:

• Half a week's pay for each year of service (under 22)
• One week's pay for each year of service (22–40)
• One and a half weeks' pay for each year (41+)
• Weekly pay is capped at £643 (2024/25)

Your employer may offer more than the statutory minimum.

2. Check Your Notice Period

You may be entitled to pay during your notice period, even if you are asked to leave immediately (payment in lieu of notice).

3. Apply for Benefits

You can apply for Universal Credit online. The first payment takes about 5 weeks, so apply as soon as possible. You may also be eligible for:

• New Style Jobseeker's Allowance — if you have enough National Insurance contributions
• Council Tax Reduction — to reduce your council tax bill
• Free prescriptions, dental, and eye care via the NHS Low Income Scheme

First 2 Weeks — Financial Review

Contact Your Creditors

If you have debts, contact each creditor to explain your situation. Most will:

• Freeze interest and charges
• Reduce your monthly payments
• Give you a payment holiday

Use our Hardship Letter Generator to write to each creditor.

Review Your Budget

Use our Emergency Budget Calculator to map out:

• What income you have (redundancy pay, benefits, savings)
• What your essential expenses are
• How long your money will last

Check Your Insurance

You may have payment protection insurance (PPI) on loans or credit cards that covers redundancy. Check your policy documents.

First Month — Getting Back on Track

• Register with the Job Centre (required for some benefits)
• Update your CV and register with agencies
• Consider training or requalification
• If your mental health is affected, contact your GP — it's a normal response

Important Reminders

• Your redundancy pay is tax-free up to £30,000
• You are entitled to reasonable time off during your notice period to look for work
• If you believe your redundancy was unfair, you may have grounds for an employment tribunal (time limit: 3 months from dismissal)