Day 1: confirm the basics
The meeting where redundancy is confirmed is rarely a place to make decisions. Listen, ask for everything in writing, and go home. Three things to confirm before you leave the meeting: the formal redundancy date, who your point of contact is for the process from here, and when you’ll receive the written confirmation letter (usually within 24-48 hours).
- Get the redundancy date in writing
- Confirm your last working day
- Confirm whether you’ll work the notice, take garden leave, or be paid PILON
- Note who your HR contact is and how to reach them
- Ask whether a settlement agreement will be offered
Days 2-3: collect the paperwork
Pull everything together in one place (a single folder on your computer or a single physical folder). You’ll refer back to these documents repeatedly through the next few weeks. The key items: your employment contract; the redundancy letter; any consultation meeting minutes; recent payslips (6+ months); your P60 from the last tax year; recent bank statements showing salary credits; pension scheme summary; any share scheme or LTIP paperwork; and the company benefits handbook if you have one.
Days 3-5: check the numbers
The statutory pieces are formulaic, so check the figures before accepting them. Use the redundancy pay calculator for the statutory redundancy figure; the PILON calculator for the notice pay if you’re receiving PILON; the holiday entitlement calculator for accrued holiday; and the settlement agreement calculator if a settlement is on the table.
Errors are common. Wrong age band applied. Wrong service length. Missing pay components. Pre-cap weekly pay used in the wrong direction. If your numbers don’t match what the employer is offering, query it politely in writing; payroll teams almost always fix legitimate errors quickly.
Days 5-7: understand the tax
The £30,000 tax-free allowance covers statutory redundancy plus any ex-gratia portion (combined). PILON, holiday pay, and contractual bonus are always fully taxable as earnings. For most packages under £30k, the practical effect is that your statutory redundancy slice arrives tax-free, while PILON and holiday come through with normal PAYE and NI deductions. See redundancy pay tax explained for the breakdown.
Week 2: the money side
With the final pay figure confirmed, the next priority is stretching the runway. Set up a high-interest easy-access savings account for the bulk of the lump sum; the interest difference on £15-£20k is £50-£70/month. Audit subscriptions and recurring direct debits. Most UK households find £150- £400/month within an hour of looking.
Week 2-3: benefits and tax position
Check what you’re entitled to. New Style Jobseeker’s Allowance is contribution-based (not means-tested) and payable for up to 6 months; many people don’t realise they’re entitled and miss it. Universal Credit is means-tested and looks at household income and savings. Council Tax Reduction may apply if your income has dropped below the threshold; apply through your local council.
On the tax side, your final pay packet often pushes a slice of income into a higher tax band for the month. Over the tax year, this usually reconciles through your tax code or a Self Assessment refund. Check your tax code via your HMRC personal tax account; correct any obvious issues now rather than at year-end.
Weeks 3-4: the job-search basics
Update the CV before applying anywhere. The version you used to get the role you just lost is rarely the right version for the next role. Build a list of 20-30 specific people to contact in your network. Most UK roles get filled through this network rather than through job boards. The first 30- 60 days are when your network is freshest and your CV is sharpest.
The decision points
Three decisions to make consciously in the first 30 days rather than drift into:
- Working notice vs PILON vs garden leave — whichever your contract allows, the choice affects your non-compete clock and your benefits. See PILON vs garden leave.
- Same field vs sector switch — if your sector is contracting, the redundancy money is a one-off opportunity to retrain. If your sector is healthy, a faster same-field search is usually the better return.
- Permanent role vs contracting/freelance — redundancy is one of the most common moments people go independent. The lump sum bridges the income gap to first invoice.
What not to do in the first 30 days
A short list of the mistakes that recur. Cashing out a pension early (the tax cost is brutal and you lose decades of growth). Taking the first job offered out of money panic (usually leads to a second job search within 12 months). Spending the lump sum on a lifestyle upgrade before the next income picture is clear. Forgetting to claim benefits you’re entitled to. Skipping the legal advice on a settlement agreement (employer pays for it; not taking it would leave money on the table).
Frequently asked questions
- What's the first thing to do when made redundant?
- Get the situation in writing. Ask for the redundancy letter confirming the date, the reason, the consultation process to date, the proposed final working day, and the financial package being offered. Don't sign anything in the meeting itself.
- How long do I have to respond to a redundancy offer?
- The Acas Code of Practice on Settlement Agreements suggests at least 10 calendar days to consider a settlement, and employers usually give that minimum. For a straightforward statutory redundancy with no settlement, you don't need to 'accept'; the process runs whether you agree or not, but you can challenge it through the grievance process.
- Should I see a solicitor when made redundant?
- Always if a settlement agreement is offered (it's legally required for the settlement to bind). Usually worth it for senior or complex cases too. For straightforward statutory redundancies under £30k where there's no dispute, a solicitor isn't always necessary; Acas advice is free.
- When do I get my final pay after redundancy?
- On the next normal payday after your last working day. Statutory redundancy, PILON, holiday pay and any contractual extras are typically all in that single payslip. Your P45 follows within 1-2 weeks.
General information about UK redundancy. For your specific situation, contact ACAS or an employment-law solicitor.
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