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The recession may be behind us, but Credit Action recently
revealed that 1,841 people are still being made redundant every day. If you’re
concerned about the safety of your job then follow these steps to protect
yourself against unemployment.
Look into state help: Before you begin an overhaul of your
personal finances, its worth looking at the support you’re entitled to. All
full-time employees with two or more years of service under their belts can
claim redundancy pay up to a maximum of £220 per week or 30 weeks. You should
also be paid Job-seekers’ Allowance for the first six months of unemployment,
and may be entitled to receive help with housing costs.
Start saving: Most people are eligible to state benefits
post-redundancy – but the reality is that even generous benefits are rarely
enough to maintain a working lifestyle. Give yourself a cushion by putting a
small amount away every month in a high-interest savings account or ISA. High
street banks such as Santander offer great introductory rates on savings
accounts, and you may be surprised at how quickly regular savings can add
up.
Review your options: If you suspect that redundancy may be
on the cards, look at the career options open to you. If jobs in your field are
limited, then consider areas which your skills might translate to. It could
also be worth looking at re-training – grants are often available to students
in high-demand areas such as health and the sciences.
Get insurance: The single most important thing you can do to
protect against the financial impact of redundancy is to take out insurance.
Income protection or payment protection plans might be notoriously expensive;
but if you lose your job then they will insure that you’re not forced to
default on your mortgage and other major financial commitments. If you’re self
employed or employed part time then income protection cover could be
particularly useful.
Finally, remember that redundancy doesn’t have to be an
all-told disaster – it can also represent an opportunity to take your life in a
different direction. Many people use unemployment to reinvent themselves and
ultimately find job satisfaction. If you plan your finances sensibly and remain
creative in your outlook, then redundancy could ultimately be the start of
something fantastic.
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