Redundancy isn’t fun. I have been there and done that and it wasn’t a nice time.
But it is possible to survive redundancy and come out the other side even better.
Being out of work messes with your routine, your income, your sense of stability and sometimes your sense of self, too.
But it’s also a chance to hit pause, take stock, and move forward in a way that works for you.
This isn’t about turning lemons into lemonade overnight.
It’s about figuring out how to keep the lights on, protect your sanity, and get back to something that feels right.
Let’s walk through it. One step at a time. With context, detail, and not too much sugar-coating.
1. Try not to panic
Before doing anything else, you need to understand where you stand.
A lot of people assume their redundancy was “just one of those things” and miss out on what they’re owed.
There are laws around how redundancy should be handled. If your employer didn’t follow the process properly, you might have a case.
If you’ve worked there at least two years, here’s what you’re likely entitled to:
- Statutory redundancy pay: Based on your age, weekly pay (capped at £643/week as of April 2024), and how long you’ve been with the company. It’s tax-free up to £30,000.
- Notice period: You’re either asked to work it or get paid in lieu (called PILON). The length depends on how long you’ve been there.
- Accrued holiday pay: You’re owed for any holiday you’ve earned but haven’t used.
- Written reason: Employers need to explain clearly why you were selected, especially if others weren’t.
I’m not a lawyer so check your facts first or seek legal advice. But you are protected, to a degree.
What else to check:
- If your contract includes enhanced redundancy terms. Some companies offer better deals than the statutory minimum.
- If the redundancy process included proper consultation, especially if 20+ employees were affected.
- Whether you were unfairly targeted. Age, pregnancy, or whistleblowing shouldn’t be factors.
Action list:
- Use this calculator: https://www.gov.uk/calculate-your-redundancy-pay
- Read your contract and redundancy letter carefully
- Speak to ACAS or Citizens Advice: They’ll walk you through your options if something seems off
Pro tip: Even if your payout looks decent, don’t skip this step. You might be owed more than you think.
2. Apply for benefits straight away
There’s no shame in it. The benefits system exists for situations like this.
The sooner you apply, the sooner money starts coming in. These systems don’t move quickly.
You could be eligible for:
- Universal Credit (UC): If you have savings under £16,000, you may get help with rent, living costs, and (if needed) childcare. It’s means-tested.
- Jobseeker’s Allowance (JSA): Not means-tested, just based on National Insurance contributions. If you’ve worked and paid NI in the last 2–3 years, you might get up to 6 months of payments, even with savings.
Mortgage or rent?
- Speak to your lender. Some offer payment holidays or lower payments for a while.
- If you rent, Universal Credit may cover part (or all) of it. But this depends on your location and personal situation.
What to check:
- Any redundancy insurance through your mortgage or employer benefits. Some people forget they signed up for it.
- Council Tax reductions. Many local councils offer support if you’re on a low income.
Start here:
Heads up: If you live with a partner who earns a lot, it might reduce what you can get through UC. Annoying, but true.
3. Get a clear picture of your finances
Right now, your main job is keeping the ship afloat. That starts with knowing exactly where you stand.
Grab your bank statements, maybe a strong coffee, and work out:
- What’s going out each month including bills, subscriptions, food, debt payments
- What’s still coming in, redundancy pay, benefits, any side income
- How long your savings (if you’ve got any) can stretch
Break it all down into needs vs. wants. Keep the lights on, food on the table, internet running.
The rest can be trimmed for now.
Things to cut or pause:
- Subscriptions you forgot you had
- Eating out, Deliveroo, Uber Eats. All those £12 dinners add up
- Gym memberships (YouTube workouts are free)
- Non-essential shopping. Yes, even that “essential” ASOS haul
Get practical:
- Use this free planner
- Set up alerts with your bank to catch overspending early
- Use a zero-based budget system: Every £1 gets a job
Struggling with debt? Don’t wait until the red letters arrive. Call StepChange or the National Debtline.
They help for free and won’t shame you.
4. Protect your mental health, because it’s a lot
People often skip this part. Or pretend they’re fine.
But losing a job, especially without warning, messes with your confidence, identity, and mental wellbeing.
Stuff to watch for:
- Insomnia or just not sleeping well
- Feeling useless or stuck in a loop of self-blame
- Avoiding friends, family, or activities you used to like
- Constant anxiety or doomscrolling job boards at 2 a.m.
What helps:
- Talk to someone. It doesn’t have to be a therapist (though that’s great too). Friends, partners, online communities. Say it out loud.
- Stick to a routine, even if it’s loose. Shower. Go for a walk. Make your bed. These little actions tell your brain you’re still in control.
- Use services like Mindor the Samaritans if you’re overwhelmed. They’re free and confidential.
Your job didn’t make you valuable. You already were.
5. Start your job search with a plan
Frantically applying to 30 jobs a day might feel productive, but it’s usually just exhausting.
You need to be strategic to really survive redundancy.
First, get your tools in shape:
- CV: Tailor it to the kind of roles you want now, not five years ago.
- LinkedIn: Turn on “open to work,” rewrite your headline, and make your “about” section sound like an actual person.
- Transferable skills: Write down everything you’re good at, soft and hard skills. These are your currency now.
Where to look:
- Big job boards: Indeed, Reed, Totaljobs, CV-Library
- LinkedIn Jobs for white collar and specialist roles
- Industry-specific boards for niche roles
- Recruitment agencies especially if you’re in law, IT, healthcare, finance, or creative fields
Tips for applying:
- Tailor every application. Even just tweaking your intro paragraph makes a difference
- Track your applications with a spreadsheet, notebook, whatever works
- Follow up (professionally) after a week or two
Not sure what you want next? The National Careers Service is free and genuinely useful:
6. Consider temporary or flexible work even outside your field
Short-term work isn’t a failure. It’s money, structure, momentum. It fills the gap while you figure out your next steps.
Options that move quickly:
- Temp agencies: Adecco, Blue Arrow, Brook Street
- Gig platforms: Deliveroo, JustEat, Taskrabbit, Uber
- Tutoring (online or in person), dog walking, admin support: Even posting leaflets if things get tight
Some people stumble into a new direction this way and it becomes much more than just a way to survive redundancy.
A side gig becomes a full-time thing, or you discover an industry you never considered before.
Extra tip: Don’t forget your local Facebook groups, Gumtree, or Nextdoor. There’s often casual work or contract stuff posted there that never makes it to job boards.
7. Learn new skills without racking up debt
Redundancy can be a moment to pivot. If there’s something you’ve always wanted to try, whether it’s coding or copywriting, this might be the time.
Loads of free (or very cheap) ways to upskill in the UK:
- Skills for Life
- FutureLearn: Uni-backed short courses, great for CVs
- OpenLearn: Tons of Open University material, all free
- Google Digital Garage: Digital, marketing, career skills
- Coursera and edX: Free content, paid certificates if you want them
In-demand skills right now:
- Digital marketing
- Excel and spreadsheets (yes, really)
- Data analysis
- Project management (even without the qualification)
- Coding, UX design, or social media management
Don’t overthink it: Start small. A two-hour taster course might open a door.
8. Don’t neglect long-term finances even if money’s tight
Understandably, you might be tempted to freeze pensions or cash in savings. But be cautious.
Some decisions can cause long-term damage.
To consider:
- If you’re in a workplace pension, your existing savings stay where they are. But check what happens when contributions stop.
- Don’t cash out pensions without financial advice. You could face tax penalties or reduce your retirement pot drastically.
- Insurance? If you’re thinking of cancelling anything (income protection, life cover), weigh the risk. Losing that safety net can be more expensive later.
Useful link:
If you’re unsure, find a regulated financial adviser, start with Unbiased.co.uk.
9. Talk to lenders before it becomes a crisis
Credit card company, loan provider, energy supplier. Whoever it is, speak to them early.
Most have teams trained to help people going through redundancy.
They might offer:
- Payment holidays
- Lower monthly payments
- Interest freezes
Tips:
- Get everything in writing
- Keep records of who you spoke to and when
- Don’t just stop paying as that tanks your credit score
Even if you’ve never missed a payment before, this is the time to ask for breathing room.
10. Rebuild slowly but intentionally
Once things calm down a bit, give yourself space to reflect.
Ask yourself:
- What did I like about my old job? What did I hate?
- Do I want to go back to the same industry or role?
- Is there room for more balance? Less stress? Different hours?
Talk to a coach, mentor, ex-colleague. Sometimes someone outside your situation can often see what you can’t.
You don’t need to have it all figured out right away. Just make the next right move.
Survive redundancy
Redundancy throws things off emotionally, financially and professionally.
But it doesn’t mean you failed. It means something ended. That’s it.
What happens next? That’s up to you.
One step, one job application, one budget plan at a time.
As long as you make that one step, you’re starting your journey to surviving redundancy!
