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Money moment · 6 steps · all free

Made redundant

What the package actually pays, how many months it buys you, and the order to cut, check and protect while you find the next thing.

  1. 1

    Know the package

    Statutory redundancy, the £30,000 tax-free band, notice pay and how the whole thing lands after tax. Get the real number before you sign anything.

    Redundancy pay calculator →
  2. 2

    Count the runway

    Package plus savings, divided by essential monthly spend, equals months of breathing room. Knowing the number kills most of the 3am panic.

    Emergency fund calculator →
  3. 3

    Cut to essentials early

    Trim in week one, not month three. The earlier you drop to an essentials budget, the longer the runway stretches.

    Budget planner →
  4. 4

    Check the tax on your final pay

    Final payslips and termination payments confuse payroll systems. A wrong code here can cost hundreds; check it and claim back fast.

    Tax code checker →
  5. 5

    Hold the debt line

    Keep minimums flowing and pause overpayments until you land. If payments are at risk, talk to lenders early; they have hardship routes.

    Debt payoff planner →
  6. 6

    Mind the protection gap

    Employer death-in-service and sick pay vanish with the job. Know what cover you lost and what is worth replacing while you search.

    Income protection guide →

Not sure where you stand overall?

The Money Health Check scores your whole position in three minutes and ranks what to fix first.

Start the health check

Common questions

Is redundancy pay taxable?
The first £30,000 of genuine redundancy pay (statutory plus most enhanced packages) is tax-free. Notice pay and holiday pay are taxed as normal salary. Anything above £30,000 is taxed at your marginal rate.
What should I do first after being made redundant?
Three things in week one: confirm your package figure in writing, work out your monthly essentials number, and check whether your final payslip used the right tax code. Everything else follows from those.
Can I claim anything while looking for work?
New Style Jobseeker's Allowance is based on your NI record and is not means-tested for the first six months, and Universal Credit may apply depending on savings. Check gov.uk early; claims only start from when you apply.

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