I Have Lost My Job and Need Help — Where to Start

Your final pay must include: salary up to the last day worked, accrued but untaken holiday paid as cash (Working Time Regulations 1998, reg 14), any contractual notice pay, and any contractual or statutory redundancy pay. Statutory redundancy applies if you have 2+ years' continuous service and the dismissal was for redundancy: 1.5 weeks' pay per year over 41, 1 week per year aged 22-41, 0.5 weeks per year under 22, capped at £700 per week and 20 years' service. The employer must give you a written statement showing how it was calculated. If anything is missing, write to the employer asking for the statement and the missing amount within 14 days.

Apply for Universal Credit at gov.uk/apply-universal-credit on the day you stop work — your assessment period starts the day you claim, and there is a 5-week wait for the first payment. If you have paid Class 1 NI in the last 2-3 tax years, also claim new-style Jobseeker's Allowance (£90.50/week, 6 months, no means test) or new-style Employment and Support Allowance if a health condition prevents work. New-style JSA/ESA can be claimed alongside UC and counts as income for UC, but the advantage is no capital test (UC has a £16,000 cap).

If you have 2+ years' continuous service and were dismissed, you have an Employment Tribunal claim for unfair dismissal unless the employer can show one of the five potentially fair reasons (capability, conduct, redundancy, illegality, some other substantial reason) AND that the process was fair. Some dismissals are automatically unfair regardless of length of service: whistleblowing, pregnancy, taking parental leave, asserting a statutory right. The Tribunal time limit is 3 months less one day from the effective date of termination — you must start ACAS Early Conciliation before that date. Discrimination claims (Equality Act 2010) have the same 3-month deadline.

If you rent, tell your landlord in writing that your income has dropped and ask for a payment plan; many landlords prefer this to eviction. UC has a housing element that may cover rent — claim it as part of the UC claim. If you have a mortgage, contact your lender and ask for a Mortgage Charter forbearance option (most lenders offer 6-month payment holidays, interest-only switches, or term extensions for borrowers in difficulty without affecting your credit file). Do not stop paying without an agreement — that breaches the mortgage contract and starts the road to possession proceedings.

If you have credit cards, personal loans, or store credit you cannot pay, contact a free debt advice service (StepChange 0800 138 1111, National Debtline 0808 808 4000, or your local Citizens Advice) before you miss the first payment. They can negotiate a Token Payment Plan, a Debt Management Plan, or — if your situation is more serious — a Breathing Space (60 days of legal protection from creditors while you get advice) under the Debt Respite Scheme. Council Tax is a priority debt: contact the council and apply for Council Tax Support immediately.

Your former employer must give you a P45 within 14 days of your last day — keep both copies for tax and benefit claims. They do not have to give you a reference, but if they do it must be accurate (Spring v Guardian Assurance [1995]). Many employers give factual references (start date, end date, role) only. If you suspect a defamatory or factually wrong reference is being given, write to the employer asking them to confirm what they say, and consider a complaint to the regulator if applicable. Keep your last 12 months of payslips — you will need them for the next employer's pre-employment checks.

Update your CV and LinkedIn this week. Register with at least 3 recruitment agencies covering your sector. Use the Jobcentre Plus Universal Jobmatch service (mandatory for UC claimants under the Claimant Commitment unless exempted). Consider whether free training is available — the National Career Service (0800 100 900) and the Skills Bootcamps programme offer free re-skilling for unemployed adults. If your dismissal was a redundancy, the Statutory Redundancy Pay is tax-free up to £30,000 and gives you a runway to retrain rather than rushing into any role.