10 steps to take if you’ve lost your job
If you’ve lost your job, it can be a worrying time. It can make you feel helpless and knock your confidence for six. And, of course, it can trigger anxieties about how you’ll pay your rent and bills without wages coming in.
The most important thing is to remember that you’re not alone. There’s plenty of financial support out there, as well as employment and money experts (like SWLLC’s own Money Advice team) who can guide you towards a new job and financial peace of mind.
If you’ve been dismissed or made redundant and are wondering where to turn next, here are ten steps that will take you in the right direction.
1. Check you’ve been paid everything you’re entitled to
If you’ve been dismissed from your job, you need to check whether your dismissal was unfair. If it wasn’t fair, you might be able to take your employer to a tribunal. There are strict time limits to act, depending on your last day of employment, so make sure you check the deadline.
Next, make sure you’ve received any outstanding payments you might be entitled to from your former employer. This could include redundancy pay, outstanding wages, holiday pay, notice pay and expenses. You can check these by looking at your employment contract and final payslip.
If you think you haven’t been given all the pay you’re entitled to and you live in South-West London, you may be able to access free advice from SWLLC’s experts. You can book an appointment with our one-off advice service online and receive employment advice over the phone.
We also work in partnership with Employment Law for London, which offers free initial legal advice on workplace problems. You can find out how to get in touch with them on our Employment page.
2. Claim benefits as soon as possible
If you’re no longer working, you might be able to claim benefits. The Money Helper website lists all the benefits that could be available to you. These could include Universal Credit, the new-style Jobseeker’s Allowance (JSA) and Council Tax Support.
The best way to find out what you’re entitled to is to use an online benefits checker. You can find free checkers at Turn2us and Entitled To, or by using Policy in Practice’s Better Off Calculator.
It can take up to five weeks for a first Universal Credit payment to arrive. If you’re struggling to pay your bills in the meantime, you can apply for a Universal Credit advance or hardship payment.
3. Review your budget
Now your income has changed, it’s important to work out your new budget. Our guide to creating a household budget will take you through the process step by step. It will help you keep track of your money, and to feel more in control of your finances.
4. Let your creditors know what’s happened
If you have credit cards, loans, overdrafts or other debts to pay, don’t panic. A lot of companies will allow you to make reduced payments if your income has fallen.
It’s important to get in touch with your creditors right away. You can explain your situation and discuss your options. This might include reduced payments while you look for a new job or wait for your benefits to come through.
5. Apply for help with utility bills
Water, gas and electricity suppliers often have hardship funds, special rates and payment support schemes for people on low incomes.
These include Cold Weather Payments. If you’re eligible, £25 will be paid into your bank account for each week the weather is below freezing. You can find out more about the different types of support available when it comes to paying your bills on the Money Helper website.
6. Check whether you qualify for any grants
Depending on your circumstances, you might be eligible for payments that will help you out while you look for work. These include charitable grants, local welfare schemes and household support funds.
One option that might be available to you is the Crisis Resilience Fund, which helps to cover essential costs when people are in crisis. You can use Turn2us’s grants search engine to find any grants you might be eligible for.
7. Look at ways of managing your debts
If you still can’t manage your debts after speaking to your creditors, there are other options available to you.
Breathing Space gives you temporary relief from your debts while you deal with your finances. A Debt Relief Order can pause some of your debts for up to 12 months. And an Individual Voluntary Arrangement allows you to pay what you can afford for a fixed amount of time.
To apply for these debt solutions, you need to speak with a qualified debt advisor. They can talk you through your choices so you can decide on the best course of action. They will help you to apply for support, too.
If you live in England, we can help with this. You can book a free appointment with our Money Advice team by filling out a Debt Appointment Request form.
8. Start looking for a new job
Looking for a new job as soon as you feel ready will help you feel more in control of your situation. The good news is that there are lots of schemes out there designed to help you get back into employment.
Your first steps should be to update your CV, explore different types of work, and apply for jobs that might suit you. The Government offers help with all these steps, and their support is free to access.
The National Careers Service and Christians Against Poverty’s local Job Clubs can also help you explore your options.
If you have a physical or mental health condition or disability, the Access to Work scheme offers practical help to get you back into work. This includes mental health support and financial grants.
If you claim Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance, your work coach can also refer you to a Back to Work scheme.
Making the most of any support that’s on offer can help you find a new job and make a fresh start faster.
9. Think about training opportunities
Adding recent training to your CV is a great way of boosting your job prospects. There are plenty of free, subsidised or even paid training opportunities out there. The Government’s Skills for Careers programme can help you find training in areas you’re interested in.
10. Look after your wellbeing
Losing a job can be very stressful, and it’s important to take care of your wellbeing while you’re going through these difficult times.
While you’re looking for work, make time to do things you enjoy – don’t let everything be about your search for a job. If you’re struggling with your mental health, speak to family and friends, or even your GP.
You can speak to organisations like Local Minds and Hub of Hope, which are there to offer support and advice. If you’re anxious or depressed, you can apply for talking therapy on the NHS. And if you’re really struggling, you can talk to Samaritans free of charge on 116 123.
Don’t worry about money alone. Getting advice from our Money Advice team is absolutely free.
Help us to help people who are facing a job loss by getting involved with SWLLC’s crucial work.