How much statutory redundancy pay am I entitled to?

Statutory redundancy pay depends on your age and length of service. If you're under 22, you get half a week's pay per year of service. Between 22-41, you get one week's pay per year. Over 41, you get one and a half week's pay per year. The maximum is capped at £16,320 (2025/26 rates). Use the government's redundancy calculator for your exact amount.

Can my employer make me redundant without notice?

No. You're entitled to notice period based on your length of service: at least 1 week if employed between 1 month and 2 years, 1 week per year if employed 2-12 years, and 12 weeks maximum if employed 12+ years. Your employer can pay you in lieu of notice instead.

What benefits can I claim if I'm made redundant?

You may be eligible for Universal Credit (if on low income), Job Seeker's Allowance (if you've made enough National Insurance contributions), housing benefit, council tax reduction, and help with NHS costs. Use entitledto.co.uk to check your eligibility.

How long does it take to claim Universal Credit after redundancy?

You should claim Universal Credit as soon as possible after being made redundant. There's a waiting period of one week before your claim starts, and there's usually a further 5-week wait for your first payment. You can request an advance payment to cover this gap.

What should I do immediately after being told I'm being made redundant?

First, get everything in writing. Then calculate what redundancy pay you're owed using the government's calculator. Check your benefits eligibility immediately. Update your LinkedIn and CV. Contact recruitment agencies. And try to avoid making any major financial decisions until you've had time to process everything.

Can I be made redundant while on maternity leave or sick leave?

Yes, but you have additional protections. If you're on maternity leave, you have priority status in any selection pool. Redundancy during pregnancy or maternity leave must not be less favourable treatment. Seek advice from ACAS or a employment solicitor if you believe you've been unfairly selected.

What tax implications apply to redundancy pay?

Statutory redundancy pay is tax-free up to £30,000. Any payment above this threshold is subject to income tax and National Insurance. If your employer offers a voluntary severance package, check how it's taxed as it may be treated differently.

I'm Being Made Redundant - What Next?

A practical guide to navigating redundancy with confidence in the UK

First, Take a Breath

If you've just received notice of redundancy, it's completely normal to feel overwhelmed, anxious, or even angry. These are all valid emotions. Job loss, even when expected, is a significant life event that affects not just your finances but your sense of identity and purpose.

The good news? You've got options. Thousands of people navigate redundancy every year in the UK, and with the right approach, you can emerge financially stable and potentially find an even better opportunity. This guide walks you through exactly what to do, step by step.

Week 1: Immediate Actions

1. Get Everything in Writing

Request your redundancy notice in writing if you haven't already. This should include the reason for redundancy, the date your employment ends, and details of any redundancy payment. You have legal rights - make sure everything is documented properly.

2. Calculate Your Redundancy Pay

In the UK, you're entitled to statutory redundancy pay if you've been employed for 2+ years. This is calculated based on your age, weekly pay, and length of service. Use the government's redundancy calculator to check what you're owed.

Calculate your statutory redundancy pay

3. Check Your Benefits Eligibility

Contact Jobcentre Plus or use the entitledto.co.uk calculator to see what benefits you might be eligible for. This could include Universal Credit, Job Seeker's Allowance, or contribution-based benefits depending on your National Insurance contributions.

Check your benefit entitlement

Understanding Your Redundancy Package

What You Might Be Entitled To

✓ Statutory redundancy pay

Calculated based on age, weekly pay, and length of service (up to £16,320 for 2025/26)

✓ Notice period

Minimum 1 week per year of service (up to 12 weeks)

✓ Holiday pay

For any accrued but unused annual leave

✓ Pension contributions

Ensure employer continues contributing during notice period

✓ Bonus or commission

If contractually entitled

✓ Enhanced redundancy package

Employer may offer additional compensation beyond statutory minimum

What to Watch Out For

✗ Unfair selection

Ensure you weren't selected unfairly (e.g., due to age, disability, pregnancy)

✗ Incorrect calculation

Double-check your redundancy pay using official calculators

✗ Missing benefits

Check if you're owed more than statutory minimum

Government Support Available

Universal Credit

Monthly payment to help with living costs if you're on a low income or out of work. Claim online at gov.uk.

Job Seeker's Allowance

If you've made enough National Insurance contributions, you may qualify. Helps while you look for work.

Additional Support

Housing benefit - help with rent if you're on Universal Credit
Council tax reduction - reduce your council tax bill
Free school meals - if you have children
NHS prescriptions and dental treatment - help with health costs

Financial Steps During Transition

Create a Survival Budget

Immediately work out your essential monthly costs: rent/mortgage, utilities, food, transport, insurance. This is what you need to cover regardless of income. Use Delphina's tools to track and prioritise these essential expenses.

Track your essential expenses

Protect Your Emergency Fund

If you have savings, this is exactly when to use them. The goal is to maintain financial stability while you find your next role. Aim to keep 3-6 months of essential expenses accessible. If you don't have an emergency fund, prioritise building one once you're back on your feet.

Review Your Commitments

Pause or cancel non-essential subscriptions. Contact lenders and utility providers to see if they offer hardship support. Many banks have specific support options for customers facing redundancy. Don't suffer in silence - reach out.

Your Next Career Moves

Update Your LinkedIn Immediately

Your profile is now open for opportunities. Update your headline, add a post about your situation (if comfortable), and start connecting. Recruiters actively search for available candidates.

Register with Recruitment Agencies

Specialist recruiters in your industry can fast-track your return to work. Register with 2-3 reputable agencies. They have access to roles that aren't advertised publicly.

Consider Upskilling

Use this time to learn new skills. Many courses are free or subsidised. The UK government offers free courses for adults earning under £25,725 or those on certain benefits.

Explore Temporary or Contract Work

Temporary roles can fill income gaps and keep your skills sharp. They often lead to permanent positions. Don't dismiss short-term opportunities.

How Delphina Can Help

Financial Clarity

See exactly where you stand with a complete view of your finances

Scenario Planning

Model different scenarios as you navigate your career transition

Build Security

Plan your financial recovery and build resilience for the future

You're Not Alone

Redundancy is tough, but it's also an opportunity to reassess your career and potentially find something better. Take it one step at a time, use the support available, and remember that this is temporary. You've got this.