If youve been made redundant, financial support may be available whilst you look for your next job.
What to do if youve been told youre at risk of redundancy
If youve been told that youre at risk of being made redundant, or youve recently been made redundant, the Jobcentre Plus Rapid Response Service may be able to provide you with support.
This could include help finding suitable training courses, finding a new job or organising work trials, as well as additional financial support to help with things such as travel to work expenses, childcare or the costs of training.
Find out more about the Jobcentre Plus Rapid Response Service
Help with finding a job
If youre looking for work, DWPs jobhelp is a good place to start and can provide you with information and advice including:
- Up-to-date job listings and details of employers who have vacancies
- Regional job listings for your area
- Job search ideas, including advice about the industries that are recruiting right now
- Advice for jobseekers, such as improving your CV and interview preparation
- Jobsearch help for under 25s
If youve been made redundant or been told that you will soon be made redundant, there are 3 main types of financial support that could be available to you:
- Universal Credit
- New Style Jobseekers Allowance (New Style JSA)
- New Style Employment and Support Allowance (New Style ESA)
You can find more information about each of these below. Other financial help may also be available.
Depending on your circumstances, you might be able to claim a combination of these benefits. Use a benefits calculator to get the full picture of all the financial support you might be entitled to. This can calculate the amount you may be able to receive, and could include additional help such as reduced council tax rates or cold weather allowances.
You may be eligible for Universal Credit if:
- youre on a low income or out of work
- youre 18 or over (there are some exceptions if youre 16 to 17)
- youre under State Pension age (or your partner is)
- you and your partner have £16,000 or less in savings between you, and
- you live in the UK
Universal Credit replaces 6 existing benefits and tax credits:
- Child Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseekers Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
If you already receive any of these and your circumstances change, it may mean that you need to apply for Universal Credit instead.
If you currently receive tax credits
If you currently receive tax credits from HMRC please be aware that if you submit a claim for Universal Credit your tax credit award will end immediately. If your tax credit award ends it cannot be re-opened, and it will not be possible to make a new tax credits claim in the future.
If you are an existing tax credit claimant, this does not mean you will be automatically eligible to receive Universal Credit. If you submit a Universal Credit claim your tax credit award will be closed immediately, even if you are not eligible for Universal Credit.
If you currently receive tax credits, please check the eligibility criteria for Universal Credit before you submit a Universal Credit claim. If your tax credit award has not ended, you will need to decide whether remaining on tax credits (if you would still be entitled to them) or claiming Universal Credit is better for you, based on your own personal circumstances. Use a benefits calculator to get an idea of what you might be entitled to.
Redundancy payments and Universal Credit
With Universal Credit, redundancy payments are treated as capital. Capital includes things such as savings and investments.
If you and your partner (if applicable) have capital (including savings) over £16,000 you will not be able to get Universal Credit. Capital between £6,000 and £16,000 is treated as generating income, and may reduce your Universal Credit payment. Capital below £6,000 will not affect your Universal Credit payments.
Find out more about how capital affects Universal Credit payments. If youre already claiming Universal Credit, it is your responsibility to report any changes of circumstances, including changes to your savings and capital. You can do this through your online account
If you are not eligible for Universal Credit you may be able to receive New Style Jobseekers Allowance or New Style Employment and Support Allowance.
New Style Jobseekers Allowance
If you have worked regularly as an employee over the last few years and paid enough National Insurance contributions, you may be able to get New Style Jobseekers Allowance (New Style JSA). Your savings and your partners income will not affect your eligibility for New Style JSA.
New Style JSA is a personal benefit for people who are looking for work and are unemployed or working less than 16 hours per week. New Style JSA can be claimed on its own, or alongside Universal Credit if youre eligible for both. You may be eligible for New Style JSA even if youre not eligible for Universal Credit or other types of financial support.
If you get New Style JSA at the same time as you get Universal Credit, your Universal Credit payments will be reduced. For every £1 you receive from New Style JSA, your Universal Credit payment will be reduced by £1.
If you receive New Style JSA you will be awarded Class 1 National Insurance credits, which count towards your state pension and may help you qualify for some other benefits. Universal Credit claimants receive Class 3 credits, which go towards the state pension, but not other benefits. This is why you may want to claim both New Style JSA and Universal Credit if you can.
New Style Employment and Support Allowance
You may be able to get New Style Employment and Support Allowance (New Style ESA) if you have a health condition or a disability that limits your capability for work. You usually need to have worked for at least 26 weeks over the last 2 tax years, and paid or been credited with enough National Insurance contributions.
Your savings, your income and your partners income will not usually affect your eligibility for New Style ESA, but a personal pension may be taken into account.
If you get New Style ESA at the same time as you get Universal Credit, your Universal Credit payments will be reduced. For every £1 you receive from New Style ESA, your Universal Credit payment will be reduced by £1.
If you receive New Style ESA you will be awarded Class 1 National Insurance credits, which count towards your state pension and other benefits. Universal Credit claimants receive Class 3 contributions, which go towards the state pension, but not other benefits. This is why you may want to claim both New Style ESA and Universal Credit if you can.
Help dealing with debt
If youre struggling financially then the Money Advice Service offers a Money Manager tool which can help you budget effectively and manage your money.
Read more about help with managing your money whilst on Universal Credit.