Financial implications of redundancy

For many, the threat of redundancy means financial hardship. It is important that you receive all monies that you are entitled to. If you have worked for an organisation for longer than two years, you will be entitled to statutory redundancy pay. You can work out your statutory entitlement by using the calculator on the gov.uk website.

Depending on your age you may be able access your pension fund and your redundancy then transforms into your retirement. The Pensions Advisory Service may be able to offer further advice on this matter.

You may be entitled to claim benefits such as Jobseeker’s Allowance or Income Support. Your local Job Centre Plus will be able to advise you on your entitlements.

If you have a mortgage or any outstanding loans, it is worth checking to see if you have any payment protection insurance attached to them that will make the payments for you. Beware; many of these insurance schemes will not make the payments for you indefinitely. Many of them will only make the repayments for one year. Also, they will only pay if you have been made redundant involuntarily. They will not pay if you have accepted a voluntary redundancy package.