MoneyMagpie Editor and financial expert Vicky Parry shares the steps you can take if you think your job might be on the line
It’s no secret the economy is struggling and businesses are closing everywhere.
The rise in employer National Insurance, increased supply prices, a disrupted global economy, and overall rising costs has put a huge strain on small and medium sized businesses.
Even large companies aren’t escaping the squeeze, such as several large retailers shutting some or all of their physical stores this year.
So, if you’re worried that all of these issues might result in you losing your job, or you already know you’re in line for redundancy, it’s important to have a plan in place.
Sudden job losses are incredibly stressful, and not having a plan of action can significantly increase the mental detriment redundancy can have.
Follow these steps now to make sure you’re in a more positive position if you’re made redundant.
Analyse your current budget
The first step is to create an honest and clear picture of your current expenditure. It’s very easy to live within the means we have – which means as you’ve gotten pay rises over the years, expenses may have crept up, too. You might prefer to buy certain brands instead of supermarket own, or have a bigger car with larger insurance costs, for example.
Analyse your expenditure from the past year. It will take an afternoon of your time, but will set you in good stead for an uncertain future. You can then build a picture of where you might be able to cut back, and decide if you want to cut now to start saving or simply be aware that there are cuts you can make.
Check your mortgage rates
It’s very easy to keep paying the mortgage without looking at how much time has passed. If you think you’re out of a fixed term rate on your mortgage, now is the time to have a look around for a new one.
Opting for another fixed term might not suit everyone, but if you’re about to (or already in) a variable rate mortgage term, fluctuating interest rates can make it very hard to budget your monthly repayments. A fixed term will help you create a budget over a longer period of time, to manage your finances in an uncertain employment period.
Downgrade your car
If you lease your car, check the terms and find out if you can exchange for another model, or when your balloon payment or return date will be. This will help you make decisions about your car finances, as it is a good idea to downgrade your vehicle if you can.
Remember to check the insurance costs of a possible vehicle before you buy, too. There is little point in reducing your monthly car lease payments if your insurance cost doubles with it!
Set up a savings standing order
Set up a standing order to shift savings across on the day you get paid. Some people prefer a smaller weekly amount to help manage their budget. However you prefer to do it, start a saving habit now . Even £10 a week will make a big difference if you lose your job and money gets tight.
Sign up to newsletters to make sure you’re already finding discounts and savings on everyday purchases, and sweep those savings into your emergency fund, too.
Revise your CV
Don’t add to the stress of being made redundant by leaving your job seeking plan to the last minute. Take some time to revise your CV right now, and ask a few trusted people to look over it, too.
Many of us don’t really think about how much we learn and do in our current jobs, especially if we’ve been doing them for a few years. However, these new skills are valuable to list on your CV, and are important to include on your job applications and interviews, too. Plus, listing your achievements in recent years can provide a much-needed ego boost at a time of stress, as well as give you the confidence to apply for more senior jobs you may not have previously considered.
Sign up to new courses
If your workplace offers any kind of in-house training as part of your role, make sure you book it in ASAP. Every training course you can take adds to your CV, and free in-house training is the best place to start.
Some employers also have a professional development budget. Check the details on your eligibility and ask your employer to send you on a course. If it’s in your contract that they will dedicate a certain amount of funds each year to your development, they need to oblige it even if cashflow is looking to be tight.
Consider a career switch
If you’ve been pondering whether it’s time to follow your dream career or try something new, now could be the time. There are lots of ways to learn new skills, and this can even be done while claiming unemployment benefits if you are made redundant.
Some places even offer fully-funded Level 3 courses in a wide range of industries, from learning to code to caring certifications. Check with your local authority too, they may have some adult education courses available to teach new skills.
Start preparing now for your career switch, even if you think it could be many months before redundancy comes for you. The more prepared you are, the easier it will be to transition when your job ends.
Keep track of your annual leave
If you don’t know how much annual leave you’ve already taken and how much you’ve accrued, you could miss out on money owed to you during the redundancy process.
Check your annual leave entitlement in your contract, and use the Gov.uk annual leave calculator to find out how much you’ve accrued in this holiday year. Keep an eye on any final payslips to make sure you’ve been paid what you’re owed.
If you think redundancy is on the cards, try to limit your annual leave that you take in the next few months, too. The extra few days on your final payslip could make a big difference during your job seeking months.
Check for benefits
Many people in work are still entitled to benefits, such as Universal Credit or Personal Independence Payment. Even if you don’t think you’ll be eligible for benefits, make sure you check that you’re claiming for anything you can by using the Turn2Us calculator.
Some benefits can take several weeks to process, up to months for others that require in-person assessments. So, get ahead by applying for things now – it’s easier to scale up your benefit entitlement if you’re already claiming even £1 while in work, than waiting up to six weeks when you’ve been made redundant.
Know your redundancy rights
There are statutory redundancy rules in the UK to help protect workers. These include things like mandatory consultation of staff regarding redundancies in companies over a certain size, or a minimum redundancy package based on how many years of service an employee has completed.
Your circumstances will differ depending on your contract type, the industry, how long you’ve worked for the company and how big the company is. So, check your redundancy rights on ACAS to make sure the rules are followed and you don’t miss out on payments you’re owed.
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