Being made redundant is often extremely difficult.
You still have financial responsibilities, such as a mortgage, utility bills or family members to look after.
And finding a new job doesn’t usually happen overnight.
That’s why it is common for people in this position to sign on for benefits.
Read on to find out more about signing on after being made redundant.
How long after being made redundant can I sign on?
You can apply for benefits as soon as you are made redundant.
In other words, you have no time frame to wait before doing so.
It is generally recommended that you sign on as soon as possible because it can often take a few weeks to process a benefits claim.
The UK Government website provides benefits calculators which you can use to work out:
- The benefits you are eligible for
- How much your benefit payments could be
- How your benefits will be affected if you start work or increase your hours
- How your benefits will be affected if your circumstances change – for example, if you have a child or move in with your partner
You should always use these checkers as they may alert you to eligibility (or hurdles) that you weren’t previously aware of.
For example, if you think the size of your savings or your partner’s income may rule you out, you should still check to be sure.
Can I claim Universal Credit?
You can claim Universal Credit if you have been made redundant. You are usually eligible if you are:
- Out of work
- Unable to work (maybe because of a health or physical condition)
- Older than 18 but younger than pension age
- Have less than £16,000 in money, savings or investments – including any redundancy payments
You should check the government website to see if you are eligible.
You will usually receive your first payment a few weeks after claiming Universal Credit, so you should apply as soon as possible.
Can I apply for Job Seeker’s Allowance (JSA)?
You can apply for a New Style Job Seeker’s Allowance (JSA) if you are unemployed or work less than 16 hours a week on average.
If your savings/investments exceed the £16,000 maximum threshold required for Universal Credit, Job Seeker’s Allowance could be a good alternative.
According to the UK Government’s website, you should be eligible for JSA if:
- You have been working within the last 2 to 3 years as an employee
- You have paid (or been credited with) Class 1 National Insurance contributions
- You work less than 16 hours per week
If you have an illness or disability which stops you from working, you typically cannot get a Job Seeker’s Allowance.
What other support is available when I am made redundant?
If you have been made redundant and are looking for alternative forms of support, there are alternative options.
You can contact the Jobcentre Plus Rapid Response Service, which will support you to:
- Write CVs
- Find jobs
- Find information on benefits
- Find the right training
- Learn new skills
- Organise work trials (if you’re eligible)
- Get any extra help at work if you’re disabled
You can contact the service even if you have not been made redundant yet, but I suspect you will be soon.
As an alternative means of support, you could contact a debt charity. They will give you free advice on budgeting and your options.
This could be a helpful support system if you cannot pay off your debts.
If you have received a large redundancy payment, seek independent advice on how to use it as effectively as possible. If not, make sure you seek out redundancy advice.
In the meantime, it is recommended that you apply for benefits or universal credit as quickly as possible.
Can I apply for Universal Credit even if I own a home?
Yes, you can apply for Universal Credit even if you own a property. Doing this could make it easier to keep paying off your mortgage during the period when you are not working.
In some instances, people look into remortgaging their property or using equity release (if they are over 55) to access additional cash from a house they own while they are not working.
Depending on the circumstances, remortgaging could help you get a better interest rate and, therefore, a lower monthly payment.
You should speak to a property expert. They can guide you on the different options available, including remortaging or equity release.
Could a cash house buyer help me?
Another option that some people consider when they have been made redundant and are struggling to meet their bills is to sell the house they are currently living in (if they own it).
If you need a cash influx, then We Buy Any Home can purchase your property within 7 days, meaning that you get very quick access to this money.
Since we only buy using our cash funds, we are never part of an unpredictable chain of housing transactions, so you can rely on the completion date we agree on.
If your house has been repossessed or you are trying to stop house repossession, then we can provide guidance in these areas, too.
Click on the links for our overviews on these areas – and please contact us if you want a no-obligation cash offer on your property.
