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Redundancy guide

Free, ImpartialDebt Advice

StepChange Debt CharityRedundancy Guide

Contents

Introduction How this guide will help you 3

Section 1 If you are facing redundancy 4­• Consider­all­your­options

• Your­rights

• Redundancy­pay

• Where­to­get­help

Section 2 Managing your money 9­• Budgeting

• Increasing­your­income

• Reducing­your­spending

• Prioritising­your­bills

• Paying­your­mortgage

• Paying­your­rent

• Managing­debt

Section 3 Next steps 14• Getting­back­to­work

• Getting­your­finances­back­on­track

• Contact­us

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StepChange Debt CharityRedundancy Guide

Introduction

Free anonymous debt adviceFree­debt­help­online­from­StepChange­DebtCharity­at­www.stepchange.org

How this guide will help you

At­StepChange­Debt­Charity­we­providefree,­impartial­advice­to­people­with­debt­problems.

Redundancy­can­be­a­stressful­and­confusingprocess.­If ­your­employer­has­announced­possibleredundancies­or­requested­volunteers­forredundancy,­it’s­very­important­that­you­understandyour­rights­and­entitlements­and­that­you’re­preparedfor­what­is­to­come.­

If ­you­have­been­made­redundant,­you­may­befinding­it­difficult­to­cope.­As­well­as­practical­adviceto­help­you­manage­your­finances­and­pay­your­bills,you­may­need­legal­and­emotional­support­to­helpyou­deal­with­the­effects­of ­being­made­redundant.

The­important­thing­to­remember­is­that­you­are­not­alone­and­there­are­many­places­to­get­help­and­support.

This­guide­explains:

•­Your­rights

•­What­redundancy­pay­you­are­entitled­to

•­How­to­manage­your­finances

•­What­your­next­steps­are

•­Where­to­find­the­information­and­support­you­need

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StepChange Debt CharityRedundancy Guide

Facing redundancy

If ­you’re­facing­redundancy,­it’s­vital­that­youunderstand­your­rights­and­entitlements.

You­may­be­in­a­position­where­your­employer­hasannounced­possible­redundancies­or­asked­forvolunteers.­It­is­important­that­you­understand­whatyour­rights­are­and­what­redundancy­package­youmay­be­entitled­to.­You­also­need­to­be­aware­of ­thecorrect­procedure­your­employer­must­follow.­

This­section­of ­the­guide­will­help­you­understandyour­basic­entitlements.­It­will­explain­whatredundancy­pay­you­may­or­may­not­be­entitled­toand­what­to­do­if ­your­employer­fails­to­pay.­It­will­alsodiscuss­the­various­options­that­could­be­available­toyou,­and­direct­you­to­other­organisations­that­canadvise­you­on­redundancy.

Consider all your options

If ­you’re­facing­redundancy,­you­may­have­anumber­of ­options­to­consider:

•­Taking­voluntary­redundancy­(where­appropriate)

•­Accepting­an­offer­of ­redeployment­within­the­same­company

•­Retraining

•­Applying­for­a­new­job­or,

•­Setting­up­your­own­business

Whichever­option­you­take­could­mean­big­changesfor­you­and­your­family.­Seeking­advice­may­help­youmake­the­right­choice.

Talking­about­your­situation­with­friends­and­familycan­also­help­you­come­to­terms­with­yourredundancy­and­decide­what­to­do.­It­is­important­tokeep­calm­and­not­to­rush­into­any­decision.­ Free debt advice

Free­debt­help­from­StepChange­Debt­Charitycall­0800 138 1111

Your rights

Your­employer­must­treat­you­fairly­and­follow­thecorrect­procedure­when­making­you­redundant.­Hereare­your­rights­and­entitlements:

Consultation­period

There­should­be­a­consultation­period­of ­usually­30-90­days­before­any­redundancies­are­made,depending­on­how­many­employees­are­affected.

This­consultation­should­allow:

•­Your­employer­to­explain­the­reasons­for­yourprovisional­selection­for­redundancy

•­You­to­discuss­your­views­on­redundancy­or­raiseany­questions­you­have

•­You­and­your­employer­to­discuss­any­appropriatealternatives,­where­they­exist.

Individual­consultation­must­take­place­before­youremployer­gives­you­notice­of ­redundancy.

Redundancy­selection

The­decision­to­select­you­for­redundancy­is­basedon­many­areas,­such­as­your­skills,­experience­and­competence.

Your­employer­cannot­select­you­for­redundancybased­on­the­grounds­of ­age,­gender,­race,­religion,disability­or­trade­union­membership.­Selection­onsuch­grounds­constitutes­unfair­dismissal­and­youwould­be­able­to­challenge­their­decision­to­make­you­redundant.

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StepChange Debt CharityRedundancy Guide

Facing redundancy

Notice­periods

If ­you’re­selected­for­redundancy­you­must­be­givena­notice­period.

Unless­your­contract­of ­employment­states­otherwise,the­statutory­redundancy­notice­periods­are:

•­A­minimum­of ­1­week’s­notice­if ­you­have­beenemployed­for­between­1­month­and­2­years

•­1­week’s­notice­for­each­year­of ­employment­if ­youhave­been­employed­for­between­2­and­12­years

•­12­weeks’­notice­if ­you­have­been­employed­for­12years­or­more.

Time­off

You’re­entitled­to­take­‘reasonable’­time­off­to­look­forwork­and­attend­job­interviews­as­long­as­you­haveworked­for­your­employer­for­2­years­by­the­end­ofyour­notice­period.

Trial­period

If ­you’re­offered­a­new­role­with­your­existingcompany­under­a­different­contract,­you’re­entitled­toa­statutory­4-week­trial­in­your­new­role.­This­trialperiod­allows­you­and­your­employer­the­opportunityto­decide­if ­the­new­role­is­appropriate.

Your­entitlement­to­redundancy­is­protected­duringthe­length­of ­the­trial.­For­example,­if ­you­decide­thenew­role­is­not­for­you,­the­redundancy­offer­is­still­valid.

Free anonymous debt adviceFree­debt­help­online­from­StepChange­DebtCharity­at­www.stepchange.org

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StepChange Debt CharityRedundancy Guide

Facing redundancy

Redundancy pay

It’s­important­that­you­understand­yourredundancy­pay­entitlements.

Your­employer­is­required­by­law­to­pay­you­statutoryredundancy­pay­if ­you­have­worked­for­themcontinuously­for­at­least­2­years,­or­if ­you­are­on­afixed­term­contract­for­2­years­or­more­which­is­notrenewed­because­of ­redundancy.

How­much­are­you­entitled­to?

The­amount­of ­statutory­redundancy­pay­you­areentitled­to­is­calculated­according­to­your­age,­yourweekly­pay*­and­the­length­of ­continuous­service.You­are­entitled­to:

•­½­a­week’s­pay­for­each­full­year­of ­service­if ­youare­aged­under­22

•­1­week’s­pay­for­each­full­year­of ­service­if ­you­areaged­over­22,­but­under­41

•­1½­weeks’­pay­for­each­full­year­of ­service­if ­youare­over­41.

*­There­is­a­maximum­limit­to­the­amount­of ­weeklypay,­and­this­changes­each­year.­Visit­www.gov.uk­tofind­out­this­year’s­maximum­limit.

Only­complete­years­of ­service­are­taken­intoaccount­when­calculating­your­entitlement,­up­to­amaximum­of ­20­years.­Check­your­employmentcontract­as­it­may­offer­you­more­redundancy­paythan­the­statutory­minimum.­All­redundancy­pay­up­to£30,000­is­tax-free.

A­written­statement

Your­employer­must­provide­you­with­a­writtenstatement­showing­how­your­redundancy­paymenthas­been­calculated­and­must­confirm­the­dateof ­your­employment­ending­in­writing.

When­will­you­be­paid?

Your­employer­should­pay­you­on­or­soon­after­thedate­of ­your­last­day­of ­employment­and­issue­youwith­Income­Tax­form­P45.

Other­entitlements

During­your­notice­period­you­are­also­entitled­to:

•­Your­normal­pay­and­benefits,

•­Payment­in­lieu­of ­notice,­and

•­Accrued­holiday­pay­for­holiday­which­has­not­been­taken.

If ­your­employer­fails­to­pay

If ­your­employer­cannot­pay­any­redundancy­paybecause­they­have­been­declared­insolvent­you­maybe­able­to­claim­what­you­are­owed­from­theappointed­insolvency­practitioner.­If ­this­is­notpossible,­you­can­apply­for­a­direct­payment­from­the­National­Insurance­Fund­on­0845­145­0004.

If ­your­employer­fails­to­pay­or­claims­that­you­are­notentitled­to­a­redundancy­payment,­you­may­take­yourclaim­to­an­employment­tribunal.

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StepChange Debt CharityRedundancy Guide

Facing redundancy

When­are­you­not­entitled­toredundancy­pay?

You­will­not­be­entitled­to­a­statutory­redundancypayment­if:

•­Your­employer­offers­you­suitable­alternative­workand­you­unreasonably­refuse­it,­or

•­You­are­dismissed­by­your­employer­on­the­groundsof ­misconduct.

You­may­not­be­entitled­to­any­redundancy­payment­if:

•­You­leave­your­job­to­start­a­new­one,­or

•­You­go­on­strike­before­the­end­of ­your­notice­period.

Where to get help

If ­you­feel­that­you­need­professional­and­impartialadvice­on­any­of ­the­above­subjects,­we­recommendyou­contact­one­of ­the­following­organisations:

Your­Trade­Union

If ­you’re­a­Union­member,­speak­to­your­workplacerepresentative­or­shop­steward.­If ­you­don’t­haveworkplace­representation,­contact­your­Union­directly.­

The­Advisory,­Conciliation­and­ArbitrationService­(ACAS)

ACAS­can­help­with­all­employment­rights­issues.­Call0845­747­4747­(8am-8pm,­Monday­to­Friday­and9am-1pm,­Saturday)­or­visit­www.acas.org.uk

Law­Centres

Your­local­law­centre­can­give­free­legal­advice­andrepresentation­to­disadvantaged­people.­Visitwww.lawcentres.org.uk to­find­your­nearest­law­centre.

Civil­Legal­Advice

Civil­Legal­Advice­can­help­with­employment­rightsissues­in­England­and­Wales.­Call­0845­345­4345(9am-8pm,­Monday­to­Friday­and­9am-12.30pm,Saturday)­or­visit­www.communitylegaladvice.org.uk

The­Labour­Relations­Agency

The­LRA­can­help­with­all­employment­rights­issues­inNorthern­Ireland.­Call­0289­032­1442­or­visitwww.lra.org.uk

Gov.uk

This­site­provides­general­online­advice­aboutredundancy­selection,­consultation,­redundancy­payand­notice­periods,­and­an­online­redundancycalculator.­Visit­www.gov.uk

The­Redundancy­Payments­Helpline

Telephone­0845­145­0004­for­advice­and­informationon­all­aspects­of ­redundancy­entitlement­in­England,Scotland­and­Wales.

Citizens­Advice

Your­local­Citizens­Advice­Bureau­may­be­able­tooffer­you­free­and­impartial­advice.­You­can­searchfor­your­local­office­at­www.citizensadvice.org.uk orlook­in­your­telephone­directory.­Advice­is­alsoavailable­at­www.adviceguide.org.uk

Free anonymous debt adviceFree­debt­help­online­from­StepChange­DebtCharity­at­www.stepchange.org

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StepChange Debt CharityRedundancy Guide

Facing redundancy

If ­you’re­struggling­with­the­emotional­effects­ofredundancy­and­are­suffering­from­sleepless­nights,depression­or­anxiety­there­are­various­people­youcan­turn­to­for­help:

StepChange­Wellbeing

Access­our­StepChange­Wellbeing­service­throughDebt­Remedy.­This­will­help­determine­if ­you­aresuffering­from­depression­or­anxiety­and­give­youpractical­and­helpful­advice­on­how­to­deal­with­these­conditions.

Your­GP

Your­GP­can­assess­the­nature­and­extent­of ­yoursymptoms­and­can­prescribe­short-term­medicationwhere­appropriate­or­refer­you­for­further­help­suchas­counselling.

NHS­Direct

Call­111­for­advice.

Samaritans

Call­their­24-hour­helpline­on­0845­790­9090­forconfidential­emotional­support.­You­can­also­emailthem,­write­to­them­or­talk­to­someone­face­to­face­inone­of ­their­branches.­For­more­information,­visitwww.samaritans.org

Free debt adviceFree­debt­help­from­StepChange­Debt­Charitycall­0800 138 1111

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StepChange Debt CharityRedundancy Guide

Managing your money

If ­you’ve­been­made­redundant­or­if ­you’refacing­redundancy,­your­main­priority­is­tosort­out­your­finances­so­you­can­manageuntil­you­have­found­another­job.

Review your finances

Unless­you­already­have­redundancy­insurance,income­protection­or­some­other­money­to­supportyou­financially,­you­will­probably­be­faced­with­somehard­choices­and­you­may­need­to­cut­back­on­yournon-essential­spending­until­you­are­back­in­work.

This­section­will­give­you­advice­on:

•­Budgeting

•­Increasing­your­income

•­Reducing­your­spending

•­Prioritising­your­bills

•­What­to­do­about­mortgage­or­rent­payments

•­Managing­any­debt­you­might­have

•­Where­to­get­extra­help.

Budgeting

It’s­important­that­you­do­a­budget,­showing­yourincome­and­spending,­to­see­if ­you­can­still­afford­topay­your­bills­after­being­made­redundant.

Work­out­your­outgoings

Make­a­list­of ­all­your­household­spending­but­do­notinclude­any­unsecured­debts­–­these­are­things­likecredit­cards,­store­cards,­loans,­overdrafts­andcatalogues.­Remember­to­put­some­money­in­yourbudget­to­cover­the­costs­of ­looking­for­work.

Be­honest­and­don’t­underestimate­your­spending.Keep­a­record­of ­everything­you­spend,­no­matterhow­small,­to­make­your­budget­as­accurate­as­possible.­This­process­will­show­you:

•­Exactly­what­your­priority­bills­are

•­How­much­you­pay­each­month

•­If ­you­can­afford­to­continue­paying­them­afterbeing­made­redundant,­and

•­Areas­where­spending­can­be­reduced­and­savings­made

Create­your­personal­budget

Once­you­have­a­good­idea­of ­how­much­you­spendeach­month,­you­can­work­out­your­monthly­budget.Follow­these­steps:

1.­List­your­take­home­pay­and­any­other­income­you­have.

2.­List­your­regular­household­bills­such­as­mortgageor­rent,­Council­Tax,­electricity,­water­and­gas.

3.­List­what­you­are­spending­each­month­on­normalliving­expenses­including­food,­clothing­and­transport.

4.­Record­what­you­spend­each­month­on­occasionalitems­such­as­the­dentist,­hairdressing,­opticians.

5.­Add­up­your­income­and­your­spending­to­see­ifyou­have­enough­money­coming­in­to­cover­all­your­costs.

6.­If ­you­don’t­have­enough­income,­review­andadjust­your­nonessential­spending­to­help­balanceyour­budget.

If ­you­think­that­you­may­struggle­to­pay­your­bills­ontime,­you­are­using­credit­to­live­on,­or­you­alreadyhave­arrears­on­your­priority­bills,­visit­StepChangeDebt­Remedy,­our­online­tool.­Debt­Remedy­will­helpyou­create­a­budget­online­and­give­you­more­adviceon­how­to­prioritise­your­bills.

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StepChange Debt CharityRedundancy Guide

Managing your money

Increasing your income

You­should­be­prepared­to­claim­benefitsuntil­you­find­another­job.

There­are­two­types­of ­Jobseeker’s­Allowance:

Contribution-based­Jobseeker’s­Allowance

If ­you­have­paid­enough­National­Insurancecontributions­you­may­be­entitled­to­make­a­claim.This­benefit­is­not­means­tested,­so­will­not­beaffected­by­any­redundancy­payment­you­have­received.­

If ­eligible,­you­can­be­paid­this­allowance­for­up­to­6­months­and­after­this­time,­if ­you­are­stillunemployed,­you­may­be­able­to­claim­Income-based­Jobseeker’s­Allowance.

Income-based­Jobseekers­Allowance

This­is­based­on­your­income­and­savings.­You­mayget­this­if ­you­have­not­paid­enough­NationalInsurance­contributions­and­you­are­on­a­low­income.

This­benefit­is­means­tested.­Any­redundancypayment­you­receive­might­affect­your­entitlement.For­example,­if ­you­have­more­than­£16,000­ofsavings,­you­are­not­eligible­to­claim.­However,­it­isstill­important­to­continue­to­sign­on­at­the­Jobcentreto­protect­your­National­Insurance­contributions.

Other­benefits

You­may­also­be­able­to­claim­Council­Tax­Reductionand,­if ­you­are­renting­your­home,­you­may­be­able­toclaim­Housing­Benefit.­Again,­any­redundancypayment­you­receive­might­affect­your­entitlement.­Ifyou­have­more­than­£16,000­of ­savings,­you­are­noteligible­to­claim.­If ­you­are­a­homeowner­you­mayalso­be­able­to­get­help­from­the­schemes­mentionedin­the­‘Paying­your­­mortgage’­section­on­page­18.­

If ­you­receive­Child­Tax­Credits,­these­will­also­needto­be­recalculated.­Further­advice­regarding­benefitscan­be­found­by­visiting­www.gov.uk

Tax­rebate

If ­you­pay­tax­under­the­PAYE­(Pay­As­You­Earn)scheme­and­the­date­of ­your­redundancy­was­not­theend­of ­the­tax­year­(usually­the­1st­week­in­April),­youmay­be­entitled­to­a­tax­rebate.­Contact­your­local­taxoffice­or­visit­www.gov.uk to­find­out­how­much­rebateyou­may­get.

Other­ways­to­increase­your­income

There­are­other­ways­to­improve­your­income.­For­instance:

•­Can­you­obtain­a­short-term­job­until­you­find­along-term­position?­This­may­be­on­a­much­lowersalary­than­you­are­used­to­but­will­help­you­to­manage.

•­Can­another­member­of ­your­household­earn­extra­income­by­taking­on­a­second­job­or­weekend­work?

•­Do­you­have­a­spare­room­that­you­could­rent­to­a­lodger?

•­Is­everyone­who­is­living­with­you­and­earning­awage­contributing­to­the­household­income?

Free debt adviceFree­debt­help­from­StepChange­Debt­Charitycall­0800 138 1111

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StepChange Debt CharityRedundancy Guide

Managing your money

Reducing your spending

Look­at­where­you­spend­your­money­andthink­about­what­you­can­cut­down­on.

Here­are­some­ideas­of ­ways­to­reduce­your­spending:

•­Only­buy­things­you­really­need­rather­than­thingsyou­want.

•­Switch­to­a­discount­supermarket­or­choose­ownbrand­products.

•­Can­you­change­energy­suppliers­or­switch­tariffs­tosave­money?­We­provide­a­utility­switching­service.

•­Pay­bills­by­direct­debit­where­a­discount­is­offered.

•­Downgrade­packages­on­items­such­as­telephone,mobile­phone,­television­and­internet­where­possible.

•­Can­you­use­public­transport­instead?

Prioritising your bills

Some­bills­and­debts­are­higher­priority­than­others.

Priority­debts

•­Mortgage

•­Rent

•­Council­Tax

•­Utilities­(water,­gas­and­electricity)

•­Court­fines

•­Any­debts­secured­on­your­property

These­are­all­classed­as­priority­debts,­eitherbecause­you­have­to­pay­them­by­law­or­becausethey­meet­basic­living­requirements­for­everyindividual­or­family.­

If ­you­cannot­pay­these­bills,­you­may­lose­theproperty­or­service.­Because­of ­this,­they­are­ahigher­priority­than­your­unsecured­debts.

Unsecured­debts

•­Credit­cards

•­Store­cards

•­Catalogue­debts

•­Unsecured­loans

•­Bank­overdrafts

If ­you’ve­received­redundancy­pay,­we­recommendyou­use­it­to­pay­for­essential­household­bills­only.This­is­because­you­don’t­know­how­long­itmay­take­to­find­a­new­job.

Make­sure­you­put­your­redundancy­pay­into­a­bankaccount­where­you­do­not­owe­money.­If ­you­don’t,the­bank­may­take­it­to­repay­any­money­you­owe­them.­

You­may­want­to­continue­to­pay­your­NationalInsurance­contributions­while­you­are­looking­forwork.­If ­you­are­able­to­claim­certain­benefits,­thegovernment­will­pay­the­contribution­on­your­behalf.But­if ­you­cannot­claim­benefits,­you­can­make­thepayments­yourself ­to­complete­your­qualifying­year.For­more­information­visit:­www.gov.uk

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StepChange Debt CharityRedundancy Guide

Managing your money

Paying your mortgage

If ­you’re­a­homeowner,­and­you­have­amortgage­payment­protection­insurancepolicy,­make­a­claim­as­soon­as­possible.

If ­you­don’t­have­insurance­and­think­you­maystruggle­to­afford­the­mortgage­payment,­there­are­anumber­of ­options­to­take.

Contact­your­lender

Contact­your­lender­to­explore­the­possibilities­ofmoving­to­an­interest­only­loan,­taking­a­paymentholiday­or­extending­the­term­of ­the­mortgage.These­options­allow­you­to­reduce­your­monthly­payment.

Support­for­Mortgage­Interest­(SMI)

If ­you’re­a­homeowner­and­get­certain­benefits,­suchas­Jobseeker’s­Allowance,­you­may­be­able­to­applyfor­Support­for­Mortgage­Interest­(SMI)­paymentsand­Council­Tax­Reduction.

SMI­can­be­paid­after­13­weeks­of ­unemployment­on­mortgages­up­to­a­maximum­of ­£200,000.­

Further­information­regarding­SMI­can­be­found­by­visiting­www.gov.uk

If ­you’re­in­arrears

If ­you’re­already­in­arrears­with­your­mortgage­andyou­haven’t­contacted­your­mortgage­company,­theymay­apply­to­the­county­court­for­possession­of ­yourhome.­You­need­to­contact­your­mortgage­lender­assoon­as­possible­to­find­out­what­options­you­have.

For­more­information­visit­www.gov.uk

Selling­your­property­is­something­youmay­also­need­to­consider.

Free debt adviceFree­debt­help­from­StepChange­Debt­Charitycall­0800 138 1111

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StepChange Debt CharityRedundancy Guide

Managing your money

Paying your rent

If ­you’re­renting­your­home­and­think­you­maystruggle­to­keep­up­with­the­payments,­there­are­anumber­of ­things­you­can­do.

Benefits

If ­you’re­receiving­certain­benefits­such­asJobseeker’s­Allowance,­you­may­be­able­to­apply­forHousing­Benefit­and­Council­Tax­Reduction­to­helpyou­stay­in­your­home­until­you­have­found­a­new­job.

Some­local­authorities­also­provide­a­discretionaryhousing­payment­if ­you­qualify.

Repaying­arrears

If ­you’re­already­in­arrears­with­your­rent­and­havenot­contacted­your­local­housing­authority­orlandlord,­you­must­contact­them­as­soon­as­possibleto­find­out­what­options­you­have.­You­may­be­able­toarrange­to­repay­your­arrears­over­time­at­an­amountyou­can­manage.­

You­may­be­at­risk­of ­eviction­if ­you­choose­to­ignorethe­problem.

Moving

Moving­to­a­cheaper­rented­property­is­somethingyou­may­also­need­to­consider.­Further­adviceregarding­your­rights­and­solutions­to­housingproblems­can­be­found­from­Shelter.

Visit­www.shelter.org.uk or­call­0808­800­4444­(E&W),0435­075­5005­(Scotland),­02980­247752­(NI).

Paying your rent

If ­you’re­struggling­to­make­your­repayments­andworried­about­your­level­of ­debt,­make­sure­you­getprofessional­debt­help­as­soon­as­possible.

Seeking­early­advice­to­deal­with­your­debts­will­helpyou­to­feel­more­in­control­and­may­help­to­lessen­anyfeelings­of ­anxiety.­

This­is­where­we­can­help.­You­can­use­our­onlinetool,­Debt­Remedy,­which­gives­you­a­complete­andconfidential­debt­advice­session­on­the­internet.­Itonly­takes­about­20­minutes­to­complete­and­willprovide­you­with­a­recommended­solution­to­yourdebts.­It­is­anonymous­and­free­of ­charge.Alternatively­you­can­call­our­freephone­helpline­on­0800­138­1111­(8am­to­8pm­Monday­to­Friday­and­Saturday­8am­to­4pm)­to­speak­to­a­debt­advisor­direct.

Your­qualified­advisor­will­tailor­a­debt­solution­for­youand­provide­you­with­a­booklet­setting­out­what­youneed­to­do.­We­can­also­give­you­expert­advice­onalternative­courses­of ­action.­No­matter­how­hopelessyou­feel­your­situation­is,­we­can­help­you

Free anonymous debt adviceFree­debt­help­online­from­StepChange­DebtCharity­at­www.stepchange.org

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StepChange Debt CharityRedundancy Guide

Next steps

Getting back to work

It­is­important­to­start­looking­for­a­new­job­as­soonas­possible,­but­do­take­some­time­to­think­about­howyou­can­apply­your­strengths­and­experience­todifferent­jobs.

Weigh­up­all­your­options

Take­a­look­at­the­job­market­to­see­what­the­mostcommon­types­of ­job­vacancies­are.­Looking­for­a­jobin­the­same­field­may­not­be­the­best­course­of ­actionif ­all­similar­jobs­have­been­affected,­for­example,­bythe­economic­downturn.

Don’t­forget­to­talk­to­old­contacts­and­friends.­A­lot­ofpeople­get­jobs­through­informal­means­rather­thanby­responding­to­job­advertisements.

A­fresh­start

Redundancy­does­not­have­to­mean­the­end­of ­yourcareer.­It­may­give­you­an­opportunity­to­use­yourskills­and­talents­to­open­doors­to­new­possibilities.Redundancy­could­be­the­change­that­allows­you­toreassess­and­evaluate­your­key­strengths­and­todecide­where­you­want­to­take­your­career.

Training and job search

Seek­advice­on­alternative­jobs­you­may­be­able­to­apply­or­retrain­for­through­one­of ­any­of ­the­following:

Universal­Jobmatch

This­is­Britain’s­largest­database­of ­job­vacancies:­www.gov.uk/jobsearch

Also­please­contact:•­Jobcentre­Plus•­Employment­agencies

Free debt adviceFree­debt­help­from­StepChange­Debt­Charitycall­0800 138 1111

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StepChange Debt CharityRedundancy Guide

Next steps

Getting your finances back on track

Once­you­are­back­in­work,­it’s­important­that­youlook­at­your­finances­and­start­to­get­them­back­ontrack.­Use­this­checklist­to­help­you:

Review­your­finances

Put­together­a­new­budget.­Keeping­your­essentialhousehold­bills­up-to-date­is­your­top­priority.

Clear­your­arrears

Clear­the­arrears­on­your­priority­bills.­Put­anarrangement­in­place­to­clear­them­over­a­reasonable­period.

Use­StepChange­Debt­Remedy

If ­you­need­help­and­advice­on­how­to­pay­yourunsecured­debts,­use­our­online­tool,­StepChangeDebt­Remedy,­or­call­our­freephone­helpline­on­0800138­1111­to­speak­to­a­debt­advisor.

Start­saving

Ideally,­we­recommend­you­build­up­to­a­minimum­ofthree­times­your­net­monthly­salary­over­time.­Keepthe­money­somewhere­you­can­access­it­quickly­andeasily,­as­you­may­need­to­use­it­to­pay­bills­or­buyfood­at­short­notice.

Consider­taking­out­insurance

Think­about­getting­mortgage­payment­protection­orincome­protection­insurance.­If ­you­decide­to­takeout­any­insurance,­take­advice­and­be­clear­on­whatthe­policy­will,­and­will­not­provide.

Contact­the­Pensions­Advisory­Service

Find­out­if ­your­redundancy­has­affected­your­pension,­by­visitingwww.pensionadvisoryservice.org.uk or­by­calling­0300­123­1047.

Contact us

If ­you­would­like­more­advice­and­help­withthe­issues­discussed­in­this­guide,­visitStepChange­Debt­Remedy,­our­free,anonymous­and­confidential­online­tool.

StepChange­Debt­Remedy­will­ask­you­somestraightforward­questions­about­your­circumstancesand­give­you­tailored­advice­and­a­personalisedbudget.­You­won’t­have­to­give­any­personalinformation­or­make­any­commitments.­StepChangeDebt­Remedy­is­available­24­hours­a­day.

If ­you­prefer­to­speak­to­someone­confidentially,­callour­free­Helpline­on­0800­138­1111­to­arrange­atelephone­appointment.

Free anonymous debt adviceFree­debt­help­online­from­StepChange­DebtCharity­at­www.stepchange.org

©­2015­Foundation­for­Credit­CounsellingRegistered­Office:­Wade­House,­Merrion­Centre,­Leeds­LS2­8NGRegistered­in­England­No­2757055­Registered­Charity­No­1016630

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