Dealing with redundancy
Managing your finances after being made redundant can be stressful. Here are some steps to help you deal with redundancy and get yourself back on your feet.
Dealing with redundancy can be very stressful. At the moment, it’s a concern being faced by many. But there are things you can do to lessen the impact, and to get yourself back on your feet. So it’s important to know your rights and start planning your next steps as soon as you can. There are a number of possible reasons for being made redundant:
- The employer’s business intends to cut cost, downsize or shut down
- The employer’s business has decided to relocate your role
- The job you were doing is no longer needed.
COVID-19 (Coronavirus) – Can you still be made redundant whilst ‘furloughed’?
During the current crisis, employers who have been impacted can use the UK government Coronavirus Job Retention scheme, to pay some of your wage while you’re unable to work. This scheme enables them to pay 80% of your normal salary up to a maximum of £2,500 a month. This is called being a ‘furloughed worker’. You can be made redundant while you’re furloughed. If this happens, you will be entitled to redundancy pay. Your redundancy pay will be calculated based on your full salary – what you earned before you were furloughed.
You can find helpful resources and guidance at Barclays Coronavirus help and support to help manage during this period.
What to do before you’re made redundant
If you think you might be made redundant, there are important steps you can take in advance that will help reduce the impact.
Understand your legal rights
Under the law, if you worked continuously for your employer for two years or longer when your employment ends, you have certain rights If you’re being made redundant – including the right to a legal notice period and redundancy pay. You’ll find details about your notice period in your employment contract. It’s also a good idea to check out the UK Government guidelines concerning redundancy pay.
Start saving money
Saving for a rainy day is always a good idea. But if you’re worried about being made redundant, finding ways to lower your monthly expenses is crucial. A good place to start is by making a budget. You can find some helpful budgeting tools and ideas here:
- How to plan and stick to a budget offers practical steps and helps identify opportunities to save. This includes switching energy suppliers for better deals on gas and electricity, and reducing your mobile phone bill by removing bolt-ons and non-essential extras. Other ways to save include reducing your monthly payments on credit cards or loans.
- Our Barclays Budget Planner offers a handy budget calculator to help you plan out repayments.
- Helpful ideas and information about benefits and grants are also at Barclays money management.
Get ready for your next job
A compelling, up-to-date CV is crucial when it comes to appealing to employers and landing a job. So take this chance to update your CV, and to highlight professional experience and credentials that would appeal to prospective employers.
This is also a good time to research the current job market in areas of interest. Get familiar with the landscape and start identifying potential targets. That way, you’ll be ready to hit the ground running when redundancy happens. This period could also offer a good opportunity to explore other career options. Use this time to prepare and plan for the future.
How to cope after being made redundant
Being made redundant can be a very stressful time – both financially and emotionally. It’s normal to worry if you’re not sure when you’ll be earning regularly again. However, there are steps you can take that will make a big difference, and that will help you manage this challenging time and get you back on track. Here are some practical steps to take that could make a big difference.
Create a redundancy budget
Managing your money and staying on top of your spending is more important than ever. The first step is creating a budget. It’s something many people avoid. But it’s a very effective way of getting a grip on where you’re spending and finding ways to save.
You can find some very helpful advice on How to plan and stick to a budget. This guide will show you how to plan and stick to a budget by using a few time-saving tools. You can also find a handy budget calculator at Barclays Budget Planner to get on top of your spending and identify opportunities to save.
When it comes to managing money and stress, knowledge is power and tools can help. This includes our handy Barclays app. It can help you stay on top of finances, allowing you to track spending at home and on the go. Of course, you’ll need a Barclays or Barclaycard account, a mobile number and you must be aged 16 or over to use the app. T&Cs apply.
Managing your debts
If you find yourself struggling to keep up with payments on debts or living expenses, there are some things you can do to help manage the situation and ease the pressure.
The first is to prioritise your debts and deal with the most important ones like utilities, rent and mortgage payments first.
With credit cards, loans and mortgages, contact your lenders to discuss any assistance they can provide. You can also explore other options by talking to our Barclaycard team. They may be able to offer other ways to manage debt and protect your credit score. You can find out more on the customer support page.
If you’re looking for help with finances during a redundancy, Barclaycard can help.