Being made redundant is never easy. Even if you saw it coming, the reality of losing your job can leave you feeling overwhelmed. But there are practical steps you can take right now that will help you get back on your feet.
This guide covers what you should do in the first week after redundancy. Some tasks are urgent, while others simply work better when you tackle them early.
Check your redundancy payment
Your employer should have given you a written statement showing how they calculated your redundancy pay. Go through this carefully. The statutory redundancy calculation gives you half a week's pay for each full year you were under 22, one week's pay for each full year you were 22 or older but under 41, and one and a half week's pay for each full year you were 41 or older.
The maximum weekly pay that counts is £643, and the maximum total statutory redundancy pay is £19,290. Many employers pay more than this, either through company policy or because it's in your contract.
If you think the figures are wrong, contact your HR department straight away. Mistakes can occur, and it's beneficial to address them promptly. Check whether you're getting pay in lieu of notice and any outstanding holiday pay too. These are separate from redundancy pay.
Redundancy pay up to £30,000 is usually tax-free, but pay in lieu of notice and holiday pay are taxable. If your total redundancy package exceeds £30,000, consider getting professional tax advice about how the excess will be taxed.
Sort out your benefits
Apply for benefits as soon as you know your job is ending. You can apply for Universal Credit online, but the first payment typically takes five weeks. Check your eligibility using the benefits calculator on GOV.UK or contact Citizens Advice for guidance.
Your partner's income or savings over £16,000 might affect what you can claim. It's worthwhile to apply even if you're unsure of eligibility, as they will confirm your entitlement.
Look into other support too. If you're renting, you might get help with housing costs. If you have a mortgage, check whether you have payment protection insurance and read the policy details about waiting periods.
New Style Jobseeker's Allowance might be an option if you've paid enough National Insurance contributions in the two full tax years before the benefit year you're claiming in. You can sometimes claim this alongside Universal Credit.
Redundancy Pay Calculator
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Your employer will tell HMRC that you've left, but this can take a few weeks. If you don't find a new job quickly, you might be due a tax refund for the current tax year.
Phone HMRC or use your personal tax account online to update your employment status. They'll send you any refund you're owed. Keep your P45 safe when it arrives. Your new employer will need it.
Update your CV
Add your most recent role and achievements while they're fresh in your mind. Two pages is plenty for most people. Focus on what you achieved in each role, not just your responsibilities.
Use numbers where you can. Budget sizes, sales increases, cost savings all help paint a picture of your impact. If you're changing career direction, you might need different versions for different types of job.
Sign up with recruitment agencies
Register with a few agencies that specialise in your field, but don't rely on them entirely. Be clear about salary expectations, location preferences and the type of role you want.
Update your LinkedIn profile and consider setting your status to 'open to work'. Many recruiters search LinkedIn for candidates. Look beyond the obvious job sites too. Check company websites directly and tell people in your network that you're looking.
Look after yourself
Redundancy can knock your confidence. You might feel angry, worried or even relieved. All normal reactions. Try to keep some structure to your days. Exercise helps. So does staying in touch with friends.
If you're struggling, your GP can help. Some employers offer support through employee assistance programmes that continue after you leave. National organisations like Mind or CALM also provide mental health support.
Work out a budget based on your redundancy pay and any benefits. Talk to your family about the financial situation. Knowing how long you can manage without work takes some pressure off.
Check your paperwork
Keep all documents from your employer safe. You'll need your P45 for your next job. Reference letters might come in handy later.
If you were in the company pension scheme, you'll get information about your options. You can usually leave it where it is, transfer it to a new employer's scheme, or move it to a personal pension. Take time with this decision and consider getting financial advice if the amounts are significant.
Check whether you have share options or other benefits that need attention. Some expire when you leave employment. If you're unsure about any aspect of the redundancy process, ACAS offers free advice, or you might want to consult a solicitor specialising in employment law.
Jobs can take weeks or months to materialise, even in a good market. Starting your search early gives you the best chance of finding something suitable. Keep records of where you apply. You'll need this information if you're claiming benefits, and it helps you follow up applications.
The first week after redundancy sets the pattern for what comes next. Handle the practical stuff now while you're motivated. Get your finances sorted. Then you can focus properly on finding your next role.
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