The Department for Work and Pensions (DWP) has updated its guidance on the financial support available to people facing redundancy, covering benefits, tax refunds, and other help after losing a job. The guidance was refreshed this week to remove outdated references to tax credits, which ended in April 2025.
What benefits can be claimed?
People who have lost their job, including through voluntary redundancy, may be able to claim Universal Credit, New Style Jobseeker's Allowance (JSA), New Style Employment and Support Allowance (ESA), or Pension Credit, depending on their circumstances.
New Style JSA is available to people under State Pension age who are unemployed or working fewer than 16 hours a week on average and have paid enough National Insurance contributions, usually during the previous two to three years. Savings and a partner's income do not affect how much New Style JSA someone receives.
New Style ESA is available to people under State Pension age with a disability or health condition affecting how much they can work, provided they have sufficient National Insurance contributions. Again, savings and a partner's income do not affect the amount paid.
Universal Credit and Pension Credit
Universal Credit may be available where either the claimant or their partner is under State Pension age and they have £16,000 or less in savings. In some circumstances, Universal Credit can be claimed at the same time as New Style JSA or New Style ESA.
Pension Credit may be available if both members of a couple have reached State Pension age, or where one person is receiving Housing Benefit for people over State Pension age.
Help before redundancy
People do not necessarily have to wait until they have been made redundant before seeking support. The Jobcentre Plus Rapid Response Service is available to people who suspect they are going to be made redundant, during their notice period, and for up to 13 weeks after being made redundant.
Support can include help writing a CV and finding jobs, information about benefits, training and new skills, and organising work trials for eligible people. Eligible people may also receive help towards the costs of travel, childcare, tools, or equipment. Disabled people can be directed towards additional workplace support such as Access to Work. People living in Scotland can also access redundancy support through Partnership Action for Continuing Employment (PACE).
Redundancy pay and tax refunds
Anyone already receiving benefits must report losing their job and declare any redundancy payment if they receive Universal Credit or other affected benefits. The guidance also points people towards information about redundancy pay, notice periods, and notice pay.
Where an employer has become insolvent, workers can apply to the UK Government for money they are owed, including redundancy and notice pay. However, benefits received - or which could have been claimed - during a notice period can be deducted from a payment for notice pay.
Some people who lose their job could also be due an Income Tax refund. The guidance says a refund may be available where someone has received their final pay, is not receiving a pension from their former employer, is not receiving taxable benefits, and has not started another job.
People struggling with debts following redundancy can also seek support. The guidance points to options including free debt advice and says people repaying certain benefit overpayments or Council Tax arrears may be able to ask to repay less each week or month.
Anyone approaching retirement can also check their State Pension forecast, while people aged 50 or over with a defined contribution pension can access free impartial pension guidance through Pension Wise.
