Job loss2 min read · Updated 21 October 2026
Made redundant? What to do in the first week
A first-week checklist after redundancy in the UK: check your pay, work out your runway, claim what you can, and call lenders before you miss a payment.
Check what you are owed
Ask for notice pay, holiday pay and any statutory redundancy pay in writing. Statutory redundancy pay applies after two years of service and is tax-free up to £30,000.
Work out your runway
Add savings and pay still to come, then divide by your monthly costs. Example: £13,000 against £2,200 a month is 5.9 months. Halve non-essential spending and it is 6.5. Plan for the job search to take at least four months.
Claim what you can
You may be able to claim Universal Credit. Savings over £6,000 reduce it and over £16,000 stop it. Apply early. Check whether your council offers help with council tax.
Call people before you miss a payment
Tell your mortgage lender, landlord and utilities. Many have hardship teams and will agree a break or a lower payment. Debt charities such as StepChange and MoneyHelper are free.
Common questions
Is redundancy pay taxed?
Statutory and contractual redundancy pay is tax-free up to £30,000. Pay in lieu of notice is taxed.
Can I claim Universal Credit with savings?
Yes, if under £16,000, though between £6,000 and £16,000 it is reduced.
Should I use my pension?
Avoid it. Withdrawing early costs tax and future income.