What Support Is Available for People Being Made Redundant in the UK?

Before anything else, understanding your rights helps you spot unfair treatment or miss out on benefits.

Statutory redundancy pay & enhanced schemes

• If you’ve worked for your employer for at least 2 continuous years, you’re generally eligible for statutory redundancy pay.
• As of 6 April 2025, the weekly pay cap used in redundancy calculations is £719, and the maximum statutory redundancy pay is £21,570.
• Your employer may also offer enhanced or contractual redundancy terms beyond the statutory minimum.

Consultation, alternative roles & fair selection

• Employers must consult employees before making roles redundant, explaining why roles are being cut, and giving you a chance to respond.
• They must use a fair and objective method to select who is made redundant (e.g. skills, performance, attendance) – they can’t choose based on protected characteristics (age, gender, disability) without risking unfair dismissal or discrimination claims.
• If there’s a suitable alternative job available within your employer’s organisation (that matches your skills, pay, location), they should offer it. Refusing a suitable alternative role may affect your redundancy pay.
• During your notice period, you are entitled to reasonable paid time off (up to 40% of one week’s pay) to look for a new job or attend training.

Redundancy often hits finances hard. These supports can help bridge the gap while you’re in transition.

Universal Credit & means-tested benefits

• You may be eligible for Universal Credit if you’re under State Pension age, have low or no income, and have £16,000 or less in savings (between you and your partner).
• Redundancy payments are treated as capital, so if your redundancy pay plus savings exceed £16,000, that could affect or disqualify you from Universal Credit.

New Style Jobseeker’s Allowance (JSA) & Employment Support Allowance (ESA)

• If you have paid sufficient National Insurance contributions, New Style JSA may be available.
• If you have a health condition or disability that limits work, New Style ESA may also apply.

Help with costs & benefits adjustments

• You might get support for travel, childcare, tools, equipment, or training costs via the Jobcentre’s Rapid Response Service (if eligible).
• Also, check Housing Benefit, Council Tax Reduction, or other local support, but report changes in your circumstances quickly (within 21 days in many cases).

To help you re-enter work (or pivot to something new), the UK offers several programmes and services.

Return to Work Bootcamps

• Use ivee to enrol in a free Return to Work Bootcamp, designed to facilitate your career re-entry and get you up to speed with modern recruitment and technological changes. You’ll receive expert CV guidance and free tailored resources.

Rapid Response / Jobcentre support

• The Jobcentre Plus Rapid Response Service helps people who are or could be made redundant. Services include CV help, job search, training options, and arranging work trials.
• This service can be accessed during notice periods or up to 13 weeks after redundancy.

National Careers Service

• Use the National Careers Service to get careers advice, course guidance, sector insights, and CV/interview help.

Industry / sector programmes & local schemes

• Some sectors offer retraining grants, sector-specific returner programmes, or local authority schemes. Always check for regional funds in your area.
• For example, devolved nations (Scotland, Wales, Northern Ireland) often run tailored redundancy / reemployment support programmes (e.g. PACE in Scotland).

Losing your job is not just a financial blow. It can deeply affect your identity, confidence, and well-being. You’re not alone in feeling that.

Here’s a practical checklist to put you on firm footing:

1. Ask for everything in writing 

your redundancy notice, consultation documents, calculation of your redundancy pay, reasons for selection

2. Check your contract & policies

to see if you have any enhanced redundancy clauses

3. Use your paid time off entitlement

to job search, training, or explore alternative roles

4. Enrol in support services

such as Rapid Response and National Careers Service, as early as possible.

5.Update your CV & LinkedIn

using advice from career re-entry experts

6. Explore new paths

e.g. freelancing, portfolio careers, reskilling

7. Monitor benefits & finances

Apply for any you’re eligible for and budget conservatively.

At ivee, we specialise in helping people reorient and relaunch their careers after transitions (including redundancy). Here’s how we support: