No matter what you do and what financial position you’re in, losing your job can be a big financial shock. Aside from looking for work, one of your main concerns may be how you manage your money during this time.
Here are some tips and also areas to look into.
Know your rights
Depending on your circumstances, you may be eligible for a redundancy package. Your employer should have a process that outlines the conditions under which they provide redundancies and they’re legally required to provide a fair redundancy if you’ve worked for them for at least 2 years.
See if you're covered
Do you have cover for income protection? If so, you may be able to make a claim with your provider. You might also be entitled to receive benefits to help you.
Look at the available benefits
The government offers a range of benefits that can help you manage your money while you look for work. You can use different calculators to see if there are any you may be eligible for. See more at www.gov.uk/benefits-calculators.
Build a budget
It’s difficult to know, but how long do you anticipate being out of work? If you’re unsure, you can use 6 months as a starting point. With your current spending, how long would the money you have last? Don’t forget to factor in any upcoming costs that you know you’ll have to pay for in the near future such as car registration.
If you have a budget you may need to adjust it to help you manage your money during this time of transition. If you don’t have a budget, now may be a good time to create one to give you an idea of how long your money will last.
Even if it looks like you could last for 6 months at your current spending it could be a good time to think about areas of spending where you can cut back.
And if once you draw up your budget and don’t think you’re going to be able to make your money last there are some support services that may be able to help.
If you’re an HSBC customer, you can call our team of specialists on 0345 850 0622 to get a helping hand.
Lines are open:
- 08:00–21:00, Monday to Thursday
- 08:00–18:00, Friday
- 08:30–16:00, Saturday
Please note, lines will not be open on Christmas Day, Boxing Day and New Year's Day.
If your income has been affected due to coronavirus – through losing your job, losing business or being offered fewer hours – you may be concerned about covering your normal monthly costs.
We’re helping customers get through this period in several ways. Find out more about the financial support we’re providing.
There are also a number of independent organisations who can provide help and give general advice about managing money.
You can find out about free independent money advisers in your area from:
The following helpline services can offer help and advice: