Unemployment is rising - five steps to take if you’re made redundant

The UK jobs market is showing signs of strain.

New figures from the Office for National Statistics (ONS) show unemployment has risen to 4.7%, the highest it’s been in four years. At the same time, job vacancies are falling and wage growth is slowing.

In short, many people are feeling more uncertain about their work and income. And that can have a big impact on your finances and peace of mind.

Why rising unemployment matters

When the job market takes a hit, it’s not just about the numbers. It affects real people:

• You might be worried about losing your job, especially if your company is cutting back.
• You could be struggling to make ends meet if your hours or pay have dropped.
• Or maybe you’ve already lost your job and are trying to figure out what to do next.

Whatever your situation, there are things to do that’ll help you through the crisis.

Five steps to take if you lose your job

If you’ve recently lost your job or think you might, here are five things you can do now to protect your finances and get support.

1. Check what benefits you can claim

If you’re out of work or on a low income, you may be entitled to universal credit or new style jobseeker’s allowance. These can help cover essential costs like rent, bills and food.

It’s worth checking what you’re eligible for as soon as possible. You can do this on our free online checker, as some benefits can take a few weeks to come through.

2. Let your creditors know

If you're struggling to pay your rent, mortgage, credit cards or energy bills, it’s important to speak to your providers early. Many have support options for people who’ve lost their jobs, including temporary payment breaks, reduced payments or hardship schemes.

The sooner you let them know, the more they can do to help.

3. Prioritise your essential bills

When money is tight, focus on paying the things that keep a roof over your head and the lights on. These are known as priority bills and include rent or mortgage, energy, council tax and food.

If you’re worried about how to manage it all, use our free budgeting tool to see exactly where your money’s going and spot areas where you could cut back. It can help you feel more in control and make sure the most important bills are covered first.

4. Get debt advice

We speak to people every day who’ve lost their job, are behind on bills, or are scared about the future. Job loss is one of the biggest reasons people reach out to us, and we understand how quickly things can spiral.

We can help you understand your options - whether that’s budgeting support, solutions to deal with problem debt or check you’re getting all the financial support you’re entitled to.

5. Take care of yourself

Losing a job can knock your confidence and affect your mental health. It’s completely normal to feel anxious, stressed, or upset.

If you’re really struggling, speak to organisations like Rethink Mental Illness or Samaritans, who are there to listen and support.

Try to stay connected with others, keep a routine where you can, and focus on small steps, like updating your CV or checking in with your support network. You don’t have to figure everything out at once.