You didn’t see it coming, or maybe you did and hoped you were wrong. Either way, being told your role is at risk hits hard, even when you know it’s a business decision and not a personal one. The first few hours after a redundancy notification are a mix of shock, calculation, and questions you don’t yet know how to ask.
This article won’t pretend that’s easy. But it will give you a clear picture of where you stand and what to do next.
The first thing worth understanding: redundancy means your role is no longer needed. It is not a verdict on your performance, your value, or your future. Legally, a genuine redundancy occurs when a business closes, a workplace closes, or the need for employees to do a particular kind of work reduces or ends. If your employer is replacing you with someone doing the same job, that is not redundancy, and you should take advice.
If you have been continuously employed for two years or more, you are entitled to statutory redundancy pay. The calculation is based on your age, your length of service, and your weekly pay, capped at £751 per week from April 2026. The formula works as follows: half a week’s pay per year you worked under the age of 22, one week’s pay per year between 22 and 40, and one and a half weeks’ pay per year aged 41 and over, up to a maximum of 20 years’ service. You can run the numbers using the GOV.UK redundancy pay calculator.
Statutory redundancy pay is tax-free up to £30,000. Since the maximum statutory payment sits well below that threshold, most people will receive their full payment without any tax deduction.
Your employer must also give you a minimum notice period: one week for each year of service, up to 12 weeks, if you have been there more than two years. You are entitled to time off during your notice period to attend job interviews. Check ACAS for the full picture on your rights during consultation, including what a fair selection process should look like and when a redundancy might be challengeable.
The redundancy payment itself often feels larger than it is. Before you do anything with it, understand what you’re actually working with.
Write down your fixed monthly outgoings: rent or mortgage, utilities, food, insurance, subscriptions, any loan repayments. That number tells you how long your redundancy payment and any savings will last if no income arrives. Most financial advisers suggest a minimum three-month buffer. If your payment covers six months of essential costs, you have more room to be selective about your next role. If it covers six weeks, your timeline is tighter and your decisions need to reflect that.
If your income drops sharply, you may be eligible for Universal Credit. Apply as soon as your employment ends, not when the money runs out. Processing takes time, and waiting costs you. If you have a mortgage, contact your lender early about a payment holiday. Most will offer one, though interest continues to accrue, so it buys time rather than reducing what you owe.
One thing many people miss: redundancy payments are made on or shortly after your last working day. If you are on garden leave or working a long notice period, you may not see that money for weeks. Factor that into your cashflow planning now.
BSB can provide bridge support during the gap between redundancy and new employment. The time to ask is during your notice period, not after your payment runs out.
Most people treat the notice period as dead time. It isn’t. It is the most useful period in the whole process, and it’s paid.
Update your CV and LinkedIn profile before you tell anyone beyond your immediate circle that you’re leaving. Reach out to former colleagues, clients, and contacts while you are still employed. People respond differently to “I’m exploring what’s next” than they do to “I’ve been out of work for two months.” The distinction matters more than it should, but it does matter.
If your employer offers outplacement support, use it. Many don’t know it’s on offer, or assume it’s only for senior roles. Ask directly.
Start conversations with recruiters in your sector during the notice period. March is generally a reasonable time to be looking: budgets are confirmed, hiring decisions that were deferred from January are moving, and many roles that were earmarked for Q1 are being filled now.
Redundancy carries far less stigma with employers than it once did. Most hiring managers understand that restructuring is a constant feature of modern business. You do not need to over-explain or apologise for it.
In interviews, keep it factual: the company restructured, the role was eliminated, you’re now looking for the right next step. Confidence in how you say it matters more than the precise wording. What employers are listening for is whether you’ve processed it and moved on, not whether it happened.
Redundancy is not just a financial event. The loss of structure, identity, and daily routine hits people in ways they don’t anticipate. If you have been in a role for several years, the job was likely a significant part of how you described yourself. That adjustment takes time.
Keep a routine. Get up at a consistent time. Build job searching into defined hours rather than letting it bleed into everything and feel like failure when applications don’t convert immediately. The average job search after redundancy takes longer than most people expect, and the middle stretch is the hardest part.
If the stress is affecting your relationships or your mental health more broadly, Mind offers support, and your GP can refer you to further help if you need it.
Before you leave, think about what you can negotiate. Your leaving date may have some flexibility. Your job title on official paperwork can sometimes be adjusted. A strong reference, agreed in writing, is worth asking for explicitly. These are all reasonable asks during the consultation period, and most employers will engage with them.
If you’d like to talk through your situation, get in touch with BSB. For your full redundancy rights, visit ACAS and GOV.UK. For benefits support, visit Citizens Advice. For careers guidance, visit the National Careers Service.