What if I am made redundant?

We recommend only using redundancy payments to pay for essential household bills.

This is because you do not know how long it may take to find a new job.

Do not put your redundancy pay into a bank account where you owe money. The bank could take it to repay any money you owe them.

Find out more about how to pay off or reduce debts.

Act quickly if you rent your home and are made redundant.

The first thing to do is talk to your landlord or housing authority.

Do this as soon as possible. They can talk through your options with you.

This is even more important if you are already in arrears.

Find out more about dealing with rent arrears.

You may also be able to:

1. Apply for Discretionary Housing Payments (DHPs)

You can apply for this if you receive certain benefits.

Each local authority has its own rules.

Find out more about DHPs.

2. Apply for a Council Tax reduction

People on a low income can sometimes get help paying council tax as long as:

• They live in the property
• They are responsible for paying the council tax

Every local authority has its own Council Tax Reduction (CTR) scheme with its own rules. Contact them directly to find out if you can apply.

Apply for Council Tax Reduction.

3. Look at moving to a cheaper property

Having to move is not ideal, but this may be the best option if you are struggling to pay your rent.

Lower rent payments could help:

• Relieve financial stress
• Improve your mental health
• Help you get your finances back on track

You can also get housing advice from Shelter.

No, do not take out more credit if you are made redundant. This includes:

• Getting a credit card
• Taking out a loan or
• Increasing your overdraft

These are short-term solutions that have a long-term impact on your finances.

Taking out credit with a reduced income is harder to pay back on time. This will likely make your financial situation worse.

Take two minutes to answer a few simple questions and find the best solution for your situation.