What to Do When You Lose Your Job in the UK

Losing your job is a shock. The first few days feel chaotic — uncertainty about money, what you're owed, and what comes next. This guide cuts through the noise with clear, practical steps based on what UK employment law actually says in 2026.

Bookmark it, work through it at your own pace. You have more options than you think.

What you're entitled to — statutory redundancy pay

If you were made redundant and have worked for your employer for at least two continuous years, you're legally owed statutory redundancy pay. Your employer cannot pay you less than this, though they can choose to pay more.

The calculation depends on your age, your weekly pay (capped at £751 from 6 April 2026), and how many full years of service you've completed, up to a maximum of 20 years.

The maximum statutory payout from 6 April 2026 is £22,530 (20 years × £751 × 1.5). Statutory redundancy pay is tax-free up to £30,000 — the combined total including any enhanced payout from your employer.

The multiplier is applied year by year based on your age in that year of service, not your current age — so longer-serving older workers often accumulate multiple bands. GOV.UK has a free redundancy pay calculator if you want an exact figure.

What if you have less than two years' service?

You don't qualify for statutory redundancy pay. However, you're still entitled to your notice pay and any outstanding holiday pay — and depending on how the redundancy was handled, you may still have grounds for an unfair dismissal or discrimination claim. Speak to Acas.

Notice periods — what you're owed

Regardless of whether you're working your notice or being paid in lieu, you're entitled to at least the statutory minimum. Your contract may give you more — in which case, your contract applies. The statutory minimums are:

Pay in lieu of notice (PILON) — if your employer ends your employment immediately without asking you to work your notice, they must pay you the equivalent salary for your full notice period. PILON is taxable — it's treated as normal earnings, not redundancy pay.

Was your redundancy fair? Knowing your Acas rights

Redundancy is one of the legally recognised reasons for dismissal — but the process still has to be conducted fairly. If it wasn't, you may have grounds for an unfair dismissal claim.

Signs your redundancy may have been unfair

• You weren't consulted individually before the decision was made
• The selection criteria used to choose you seemed arbitrary or discriminatory
• Your employer didn't consider suitable alternative roles before making you redundant
• You were selected for redundancy while on maternity, paternity, or sick leave
• The redundancy appears to be a cover for a disciplinary issue or personal conflict

The first step is always to contact Acas — they offer free, impartial advice and will attempt conciliation before any Employment Tribunal claim. Most disputes are resolved at the conciliation stage without going to a tribunal at all.

Acas helpline: 0300 123 1100 — Mon–Fri 8am–6pm

Collective redundancy — 20 or more people

If your employer is making 20 or more people redundant within 90 days, they must follow a collective consultation process and notify the government. If they haven't done so, your union or elected employee representatives can bring a claim for a protective award — up to 90 days' pay per affected employee.

Claiming Universal Credit

Universal Credit is the main financial support for people of working age in the UK — whether you're unemployed, working part-time, or on a low income. You can claim it even if you've received a redundancy payout, though savings above £16,000 will disqualify you.

Standard allowance rates (2026/27, from 6 April 2026)

These are the base amounts. You may receive additional elements on top for housing costs, children, childcare, disability, or caring responsibilities.

How to apply

Apply online at gov.uk/universal-credit. You'll need your National Insurance number, bank details, rent or mortgage information, and details of any savings. Apply as soon as possible — your claim date determines when payments start.

Your mortgage or rent

Homeowners — contact your lender now

If you have a mortgage, contact your lender as soon as possible — don't wait until you miss a payment. Lenders are required by the FCA to treat customers in financial difficulty fairly, and most have options including payment holidays (pausing payments for up to six months in total, typically agreed three months at a time), interest-only periods, or extended loan terms.

Interest continues to accrue during a payment holiday, so your monthly repayments will increase slightly afterwards. Get any arrangement agreed in writing before stopping payments — missing payments without an agreement in place will damage your credit rating.

You may also be eligible for Support for Mortgage Interest (SMI) — a government loan that covers the interest portion of your mortgage while you're on certain qualifying benefits, including Universal Credit. It's a loan, not a grant, so it's eventually repaid when you sell or transfer the property.

Renters — check your council's housing support

Universal Credit includes a housing element for renters. The amount is based on Local Housing Allowance (LHA) rates for your area, which have been frozen since April 2024 — meaning they may not cover your full market rent. Apply for UC as soon as possible so the housing element is included from your claim date.

If you're worried about eviction or rent arrears, contact your local council's housing team or Citizens Advice — there are discretionary funds and emergency housing support available that many people don't know exist.

Tax and your final pay

Check your tax code and request a refund

If you've stopped working partway through the tax year (April to April), you've probably paid too much income tax — because your tax-free personal allowance (£12,570 in 2026/27) is spread across the whole year, but you've only earned for part of it.

HMRC usually processes refunds automatically at the end of the tax year, but if you need the money sooner — for example if you're on Universal Credit — you can use form P50 to claim a repayment early. Check your payslips to see how much PAYE you've paid this year.

P45 — don't lose it

Your employer must give you a P45 when your employment ends. It shows your total pay and tax paid this tax year, and you'll need it when you start a new job or claim certain benefits. Keep it somewhere safe. If your employer doesn't send one, chase them — you're legally entitled to it.

Government retraining support

If you've been made redundant and want to retrain or upskill, there's more government support available than most people realise.

Skills Bootcamps

Skills Bootcamps are free, flexible courses of up to 16 weeks in sectors where employers are actively hiring — including digital, data, cyber security, engineering, construction, and green economy roles. At the end, you're guaranteed a job interview. They're available across England and open to adults aged 19 or over who are not in full-time education.

Find available courses at gov.uk/skills-bootcamps.

National Careers Service

The National Careers Service offers free, impartial careers advice from qualified advisers — including help reviewing your CV, planning a career change, and identifying training options. Available online, by phone, or face to face. Call 0800 100 900 (free).

Apprenticeships

There's no upper age limit for apprenticeships in England — they're not just for school leavers. If you're considering a career change, an apprenticeship in a new field (including degree-level apprenticeships) can be a well-paid way to retrain while earning.

If you're over 50 — 50PLUS Choices

The 50PLUS Choices programme offers personalised support for job seekers aged 50 and over, including career coaching, help with CVs and interviews, and access to flexible working opportunities. Ask at your local Jobcentre Plus.

Your first week — what to do right now

1. Ask for your P45 — your employer is legally required to provide it when you leave. Keep it safe.
2. Calculate what you're owed — use GOV.UK's redundancy pay calculator. Also check any outstanding holiday pay.
3. Check the Acas deadline — if you think the process was unfair, you have 3 months minus 1 day to start a claim. Note the date now.
4. Apply for Universal Credit — do this now, not later. The five-week wait starts from your claim date, not when you get around to it.
5. Call your mortgage lender or landlord — be upfront early. Most lenders have options they won't volunteer unless you ask.
6. Check your tax — if you've paid too much PAYE this year, you're owed a refund. Use GOV.UK's income tax checker or speak to HMRC.
7. Contact Citizens Advice — if anything in your situation feels complicated (disputed redundancy, debt, housing worries), they're free, local, and genuinely helpful.

Quick reference

Key deadlines to know