Redundancy.

Redundancy can be stressful. For many, it will mean your financial situation will change. The best way to prepare yourself is to get a good understanding of your finances as quickly as possible.

You can do that in a few simple steps:

  • First and foremost, don’t ignore the problem.
  • Spend some time calculating your income and outgoings so you can prioritise important commitments. You should pay all your essential bills first, such as your mortgage, utility bills (electricity, gas, water), insurances, council tax and housekeeping.
  • Know your rights. As an employee of any company, you have some basic rights to information and a say in what happens to you. There’s a range of things you should find out such as notice periods, redundancy pay and legal requirements.
  • Get some practical help. Understanding your complete financial situation is key to solving any problems you may be experiencing. Your bank is a useful place to seek guidance and support.
  • Budget, budget, budget. Cutting costs will relieve some of the financial problems you may face. An easy and simple way to do this is to draw up a budget.
  • If you think you may struggle to pay your mortgage, call your mortgage provider right away. They’ll be able to offer advice - the earlier you contact them, the better.
  • Find out what you're entitled to. There are various allowances you can claim to tide you over while you look for another job.

At a glance

  • Don't ignore the problem.
  • Speak to your employer and know your rights.
  • Sort out your finances.
  • Get some practical help with debt if necessary.
  • Set a budget.
  • Find out what benefits you're entitled to.
  • Make a plan for getting back to work as soon as possible.
  • Plan for the future. This will help you protect your standard of living in case you are made redundant again.

Know your rights

The government offers impartial information about your rights and your employer’s obligations:

Directgov

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