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Action Plan

Being made redundant can feel stressful and frightening. Here are a few simple steps you can follow:

Redundancy Questions

Will I get sanctioned if I am made redundant?

If you are considered to have lost your job without a good reason, you can be sanctioned at the beginning of a benefit claim. This means you won’t receive your full benefit entitlement for as long as the sanction lasts.

You shouldn’t be sanctioned for being made redundant.

You also shouldn’t be sanctioned for taking voluntary redundancy, provided your company is going through a redundancy process.

Will my redundancy pay affect my benefit entitlement?

Your redundancy payment won’t be treated as income when working out how much benefits you can get. It will be treated as capital. This means that the amount you get in redundancy payment will be added to any other savings you have.

If you have total savings of more than £6,000, it will affect how much Universal Credit you can get.

The best way to check how this will affect your benefits is to use our Benefits Calculator.

If you have savings of over £16,000, you won’t be able to get Universal Credit.

Your savings won’t affect how much New Style Jobseeker's Allowance (JSA) you can get.

If you get pay in lieu of notice or holiday pay, this will affect how much Universal Credit you can get, but only if you receive the pay after you first apply for Universal Credit.

The best way to check how this will affect your benefits is to use our Benefits Calculator (link above).

Charitable Grants

To find out what help may be available to you from grant-giving charities, you can use our Grants Search.

Advice and support

Turn2us is unable to offer advice on individual situations. To find an adviser in your area to discuss your situation with you can use our Find an Adviser.

Useful resources

Acas: Your Rights During Redundancy 

Gov.UK: The Skills Toolkit - courses to help you retrain.

Gov.UK: Job Help - website focused on sectors where there are currently jobs available.

Mind: Coping with redundancy - redundancy can be stressful and upsetting. Get tips on taking care of your mental health.

Reviewed: April 2022


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