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Facing redundancy: financial tips
It may sound obvious that personal finances are extremely important when you’re facing redundancy, but if you can take control at the outset, you are more likely to avoid difficulties further down the line.
Workingwise.co.uk offers a few useful tips if you’re facing or have been made redundant:
Time Off
While you are working your redundancy notice, you are entitled to reasonable time off to look for a new job, provided you have worked continuously for your employer for two years or more.
As long as the amount of time you take off is reasonable, you should be paid for most or all of this time.
Finances
Take stock of your financial situation by writing down your essential expenditure and try to save money to give yourself a cushion.
Look at where you can make cutbacks, such as;
- On daily coffees
- Gym memberships, etc.
Prioritise debts such as mortgage or car payments and look to switch lenders to get the best rates for paying off debts.
Also check your insurance to see if it covers job loss and consider other ways of making money, such as through eBay or renting a room.
Redundancy Payment
Make the most of any redundancy payment you get – visit Redundancy Advice Services for suggestions on how to do this.
Pension Options
Check out your pension options and whether to leave a workplace pension where it is or transfer it. In most cases it is best to leave your money where it is, unless you have concerns about the scheme. If you have specific queries it is a good idea to ask a financial adviser for help.
Flexible Support Fund
If you are getting benefits and have to travel a long way to an interview, you may be entitled to help with travel and other costs through the Flexible Support Fund which can be used by individual claimants for the cost of travel to interviews, childcare, tools and clothing and uniforms to start work. Ask you local Jobcentre Plus for details.
Work Trials
If you have been unemployed and claiming benefits for 26 weeks or more, your local Jobcentre Plus may be able to set up work trials for you.
This voluntary scheme enables you to try out a job to see if it’s right for you. Any state benefits you receive continue throughout the trial.
At the end of your trial, which can be up to 30 working days, you may be offered the job. If not, your benefits are not affected.
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