1. Getting things in order
1. Getting things in order
Losing your job is never easy…
However, when approached with the right attitude (hint: don’t panic), and a clear head, there are some simple steps along the way that can help you back on your feet.
The Money Advice Service has a checklist of the things you should do if you lose your job, including claiming benefits and entitlements and keeping track of your money if you don’t have an income coming in.
Work out your redundancy pay
If you’ve been made redundant, you may be entitled to redundancy pay.
The Money Advice Service has a redundancy pay calculator, which you can use to get a personalised plan of what you’re likely to receive in statutory redundancy pay. Depending on the contract you signed with your company, you may even be able to get a little more.
Talk to your landlord or mortgage provider
One of the most important things to be sure of if you experience job loss is that your home is safe. For this reason, you should always talk to your landlord or mortgage provider as soon as possible. Your mortgage lender may also be able to make arrangements to extend your mortgage term, or reduce your monthly payments. You never know until you ask, and it’s always better to take action quickly if you can.
Claim all benefits and entitlements
Losing your job may leave gaps in your National Insurance record, however you could be credited with contributions provided you are in receipt of certain benefits. This will help maximise your basic state pension, if you’re out of or unable to work.
If you have recently been made redundant, you are likely to be a new claimant to the benefit system, even if you have been claiming some sort of benefit before, because your circumstances will have changed due to redundancy. You should be able to apply for Universal Credit, which is a single monthly payment that includes a standard allowance plus other elements – such as payments for housing or children.
Have a look at these videos that explain what Universal Credit is and how to claim:
- DWP: What is Universal Credit? (1:38mins)
- Universal Credit full service overview – June 2017 (12:40mins)
Talk to a debt advisor
If you feel your debts are spiralling out of control, you don’t have to face it alone. Talking to a debt advisor is free and confidential. Find local help using the Money Advice Service debt advice locator tool.
Review your budget
If your income has dropped, it is likely that you will have to review your budget and spending to keep costs down. Some people are put off by the idea of budgeting, but it is simpler than it sounds – it’s just a list of your incomings and outgoings, to help you work out where you can cut back.
The Money Advice Service budget planner will assist you in estimating your outgoings, and let you know how much is left over after all your major bills come out.
Start applying for jobs and get advice about your CV
Once you know where you’re at with your money, start thinking about what you’re going to do next. If it’s been a while since you were looking for a job, you may also need to take the time to brush up on your CV and interview skills.