I’ve been made redundant. How will I afford my outgoings?

July 16, 2013

In the last financial quarter, (January – March 2013) Scotland had the highest employment rate of all countries in the UK, with 71.8 per cent of residents in employment. At 7.1 per cent, the Scottish unemployment rate is also below that for the UK as a whole, which stands at 7.8 per cent. Despite this, redundancy is still a worry for many families, and since the economic crisis, has affected an increasing number of Scottish residents.

If you’ve been made redundant, you might be concerned about how you will cope without regular income. It’s important not to panic as there are several options to consider and entitlements to be aware of whilst you search for alternative employment.

Redundancy pay could help temporarily in keeping your finances afloat. If you haven’t received any redundancy pay, it’s important to contact your employer to check your entitlement.

To be eligible for a statutory redundancy payment you must have a contract with your employer and have been continuously working for your employer for a minimum of 2 years (unless your employer has chosen a shorter eligibility time). If you opted for early retirement in the face of redundancy, you’re also not entitled to a redundancy payment, so it’s important to think through your options first.

The exact payment you could receive will depend on your age and how long you’ve worked for the company. Employers have to pay the statutory amount, but are not limited to this and can offer further redundancy pay if they wish.

In the unfortunate event that you’re not entitled to redundancy pay, there are still other benefits which can help. Claiming job seekers allowance and other benefits which offer to pay your rent and council tax may be available depending on your individual situation. Why not contact one of our helpful debt experts to discuss your financial difficulties and they can offer you advice on your entitlement.

Government mortgage schemes are sometimes an option for homeowners too, to help with the payment of your mortgage while you’re out of work. However, it’s important to get advice from a financial expert to check what’s right for you before making any decisions.

Finally, if you’ve taken out Payment Protection Insurance for any loans or credit cards, make sure you contact your creditor. It’s possible this insurance could cover your monthly payments until you’re back at work.

Redundancy is a scary prospect for anyone, especially if you have a family to support. But with the help and knowledge of one of our experienced debt experts at Scotland Debt Solutions, we will try and relieve some of the financial stress so you can concentrate on finding alternative employment.

John Baird

Insolvency Adviser

Tel: 0800 063 9250

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