Lost Your Job? What to Do Next (UK Guide)

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Losing your job feels like a punch to the gut. One minute, you’re part of a team, with a routine and a regular payday. The next, the ground has vanished from beneath your feet. It’s a shock, and it’s completely normal to feel a messy mix of anger, fear, and confusion. You might be thinking, “What on earth do I do now?”

Take a deep breath. You are not the first person this has happened to, and you certainly won’t be the last. Getting laid off or made redundant is a tough experience, but it’s one you can absolutely get through. Think of this as an unexpected detour, not a dead end.

This guide is your roadmap. We’re going to walk you through everything, step-by-step, in plain English. We’ll cover the immediate things you need to sort out, like your rights and your money, and then we’ll look at the longer-term picture, like finding a new role or even a whole new career. You’ve got this. Let’s get started.

Part 1: The First 24 Hours – Damage Control and Deep Breaths

Right now, your head is probably spinning. Don’t try to solve everything at once. The first day is about managing the shock and taking a few small, crucial steps to steady the ship.

Acknowledge the Shock (It’s Okay to Not Be Okay)

First things first: let yourself feel it. Whether you saw it coming or it was a complete surprise, losing your job is a big deal. You might feel panicked about money, angry at your old boss, or just plain sad about leaving your workmates.

All of these feelings are valid. Don’t bottle them up or tell yourself to ‘get over it’. The best thing you can do right now is to acknowledge the shock and give yourself a bit of space.

Talk to someone you trust. Call your partner, a close friend, or a family member. Just saying the words “I’ve lost my job” out loud can make it feel more real and less overwhelming. You don’t need a plan yet; you just need a listening ear.
Don’t make any big decisions. Today is not the day to decide you’re moving to the Outer Hebrides to become a sheep farmer (unless you were already planning that). Avoid rash financial choices or dramatic life changes.
Do something simple to clear your head. Go for a walk. Make a cup of tea. Watch a mindless film. Your brain is in overdrive, so give it a rest. The big stuff can wait until tomorrow.

Gather Your Paperwork: The Essentials You’ll Need

Before you leave the office for the last time, or as soon as you can, try to get your hands on some key documents. If you’ve already left, don’t panic – you can request these from your former employer’s HR department. They are legally required to provide them.

You’ll need:

Your P45. This is a really important form that shows how much tax you’ve paid so far in the tax year. You will need to give this to your next employer or to Jobcentre Plus if you claim benefits. Your employer must give you this after you leave.
Your final payslip. Check it carefully to make sure you’ve been paid for everything you’re owed, including any holiday pay or overtime.
A written statement of your employment terms. This is often your original contract. It will have details about your notice period and any redundancy pay you might be entitled to.
Redundancy notice. If you were made redundant, you should have a formal letter explaining the terms.

Keep all of these documents together in a safe place. You’re going to need them over the next few weeks.

Understand Why You’ve Left

It’s important to be clear on the reason your employment ended. This isn’t about blame; it’s about understanding your rights. The main reasons are usually:

Redundancy: This is when your job no longer exists. Perhaps the company is downsizing, closing your department, or changing the way it works. If you’ve worked for your employer for at least two years, you have specific redundancy rights.
Dismissal (or being ‘sacked’): This is when your employer ends your contract, usually for reasons related to your performance (capability) or your behaviour (conduct). They must follow a fair process to do this.
End of a fixed-term contract: If you were on a temporary contract for a set period, it may simply have come to its natural end.

If you’re not sure, or if you feel you’ve been treated unfairly, it’s worth getting advice. We’ll cover where to get help later on. For now, just get a clear picture of the official reason you’ve left.

Part 2: Sorting Your Finances – Taking Control of Your Money

Okay, deep breath. Now it’s time to look at the money situation. This is often the biggest worry, but with a clear plan, you can manage it. The goal is to create a safety net that will see you through until you’re earning again.

Check Your Final Pay

Your final pay packet is your first financial cushion. Your employer should pay you everything they owe you on your normal payday or soon after you leave.

Make sure it includes:

Your salary up to your last day of employment.
Pay for your notice period. The amount of notice you’re entitled to should be in your contract. If you’re made redundant, you have a right to a minimum statutory notice period, even if your contract says less.
Holiday pay. You should be paid for any holiday you were entitled to but didn’t take.
Redundancy pay. If you were made redundant and have been with the company for two years or more, you are legally entitled to statutory redundancy pay. The amount depends on your age, how long you worked there, and your weekly pay. Your company might offer a more generous package, known as contractual redundancy pay.

A quick tip: The first £30,000 of redundancy pay is tax-free. This is a big help.

Use the GOV.UK redundancy pay calculator to check if you’ve been paid the right amount. If something doesn’t look right, contact your old HR department straight away.

Create a ‘Survival’ Budget

Now is the time to get real about your finances. You need to know exactly what’s coming in and what’s going out. This might feel scary, but it’s the most empowering thing you can do. Knowledge is power.

List all your income. For now, this might just be your final pay and any redundancy money. We’ll look at benefits in a moment.
List all your outgoings. Go through your bank statements for the last three months and be brutally honest. Group your spending into two categories:
- Essentials: These are the things you must pay. This includes your mortgage or rent, council tax, utility bills (gas, electricity, water), food, and any essential travel costs.
- Non-Essentials: These are the ‘nice-to-haves’. Think gym memberships, streaming services (Netflix, Spotify), takeaways, subscriptions, and holidays.
Cut the non-essentials (for now). This is temporary. Go through your list and be ruthless. Can you pause your gym membership? Cancel a few streaming services? Switch to a cheaper supermarket? Every little bit helps. It’s about creating breathing room.

There are some great free budgeting tools online from places like the MoneyHelper service or charities like StepChange. They can make this process much easier.

Apply for Benefits Immediately

This is incredibly important: do not delay applying for benefits. Many people feel a sense of pride or shame about this, but the benefits system is there to act as a safety net for everyone. You’ve paid into it through your taxes, and now it’s there to support you.

The main benefit for people who have lost their job is Universal Credit. It’s a single monthly payment to help with your living costs.

How to apply: You apply for Universal Credit online through the GOV.UK website. You’ll need your bank details, your email address, information about your housing costs, and details of any savings you have.
Savings matter. Universal Credit payments are affected by how much you have in savings. If you have over £16,000 in savings (this includes any redundancy pay), you won’t be eligible. If you have between £6,000 and £16,000, your payment will be reduced.
It takes time. It usually takes about five weeks to get your first Universal Credit payment. This is why acting fast is so important. If you’re in urgent need, you can ask for an advance payment, but remember this is a loan that you’ll have to pay back from your future Universal Credit payments.

Depending on your past National Insurance contributions, you might also be able to claim New Style Jobseeker’s Allowance (JSA). You can get this on its own or at the same time as Universal Credit. It’s not affected by your savings or your partner’s income for the first six months. Again, you can find all the details and apply on the GOV.UK website.

Talk to Your Lenders

If you have a mortgage, a car loan, or credit card debt, the thought of missing payments can be terrifying. The worst thing you can do is ignore it.

Be proactive. Call your lenders and explain the situation. Most banks and building societies have dedicated support teams for customers who are in financial difficulty. They might be able to offer you a payment holiday, where you temporarily stop or reduce your payments, or they might be able to switch you to an interest-only mortgage for a short period.

This won’t affect your credit score if it’s a formal agreement, whereas missing payments will. It’s always better to talk to them.

Part 3: Your Rights and What to Do If Things Aren’t Right

When you lose your job, it’s easy to feel powerless. But you have important legal rights that protect you from being treated unfairly. Understanding them will give you confidence.

Redundancy: Was it Fair?

For a redundancy to be legal, your employer has to follow a fair process. This means:

A genuine reason: The reason for the redundancy must be real. For example, the business is closing, or the type of work you do is no longer needed. It can’t be used as an excuse to get rid of you for another reason (like being pregnant or because you’ve been off sick).
Fair selection: If your employer needs to make several people redundant from a team, they must use a fair and objective way to select who leaves. This could be based on skills, disciplinary records, or performance. They can’t just pick you because your manager doesn’t like you.
Consultation: Your employer must consult with you about the redundancy. This means talking to you about why it’s happening and exploring any alternatives, like moving you to another role in the company. If they are making more than 20 staff redundant, there are strict rules about how they must consult with everyone.

If you don’t think your employer followed a fair process, or if you think the reason for your redundancy wasn’t genuine, you might have been unfairly dismissed.

Unfair Dismissal

Aside from redundancy, you could also be unfairly dismissed for other reasons. For example, you can’t be dismissed for:

Asking for your legal rights (like asking to be paid the minimum wage).
Joining a trade union.
Needing time off for jury service.
Being pregnant or on maternity leave.
Whistleblowing (reporting wrongdoing at work).

These are called ‘automatically unfair’ reasons, and you’re protected from day one of your employment. For most other types of unfair dismissal, you need to have worked for your employer for at least two years.

Discrimination

It is against the law for your employer to discriminate against you. This means they cannot treat you unfairly because of your:

Age
Disability
Gender reassignment
Marital status
Pregnancy or maternity
Race
Religion or belief
Sex
Sexual orientation

If you believe any of these factors played a part in you losing your job, this is illegal, and you should seek advice immediately.

Where to Get Help and Advice

If you think something is wrong, you need expert advice, and you need it quickly. There are very strict time limits for making a claim at an employment tribunal – usually three months less one day from the date your employment ended.

Here are the best places for free, impartial advice:

Acas (Advisory, Conciliation and Arbitration Service): This is a government-funded body that provides free and confidential advice on employment rights. They have a brilliant helpline and lots of clear information on their website. They are the first port of call.
Citizens Advice: Their trained volunteers can offer advice on a huge range of issues, including employment problems and benefit claims. They have local branches all over the country.
A trade union: If you’re a member of a union, contact your representative immediately. They will have legal experts who can support and represent you.

Part 4: The Job Hunt – Getting Back in the Saddle

Once you’ve got the immediate practicalities sorted, your focus will naturally shift to finding a new job. This can feel like a full-time job in itself, so it’s important to approach it with a plan and a positive mindset.

Update Your CV: Make it Shine

Your CV is your personal marketing document. It’s often the first impression a potential employer will have of you, so it needs to be good.

Tailor it for every single job. Don’t just send out the same generic CV for every role. Read the job description carefully and tweak your CV to highlight the skills and experience that are most relevant. Use the same keywords that you see in the advert.
Focus on achievements, not just duties. Instead of saying “My duties included managing the team’s budget,” try “I managed a £50,000 team budget, successfully reducing costs by 10% in one year.” Use numbers to show your impact.
Keep it clean and simple. A CV should be no more than two pages long. Use a clear, professional font and make sure there are no spelling or grammar mistakes. Get someone else to read it and check for errors.
Include a strong personal statement. This is a short paragraph at the top of your CV that summarises who you are, what you’re good at, and what you’re looking for. Make it punchy and engaging.

The National Careers Service website has some excellent free CV templates and advice to get you started.

Where to Look for Jobs

The world of job hunting has changed a lot. It’s not just about looking in the local paper anymore. Spread your net wide.

Online job boards: Websites like Indeed, Reed, Totaljobs, and CV-Library are huge search engines for jobs. You can set up alerts for roles that match your skills.
LinkedIn: If you’re not on LinkedIn, now is the time to create a profile. It’s the world’s biggest professional network. Recruiters use it all the time to find candidates. Make sure your profile is up to date and reflects your CV. Connect with former colleagues and people in the industry you want to work in.
Specialist recruitment agencies: There are recruitment agencies that specialise in pretty much every industry, from IT and finance to marketing and construction. Find the ones that are relevant to your field and register with them.
Company websites: If there are specific companies you’d love to work for, check the careers section of their websites directly.
Your network: Let people know you’re looking. You never know who might have a lead. Talk to old colleagues, friends, and family. It’s often said that many jobs are found through word of mouth, and it’s true.

Prepare for Interviews

Getting an interview is a huge win, so make sure you’re prepared to make the most of it.

Research the company. Know what they do, who their competitors are, and what their values are. Read their latest news. This shows you’re genuinely interested.
Prepare for common questions. Be ready to answer questions like “Tell me about yourself,” “What are your biggest strengths and weaknesses?” and “Why do you want this job?”
Think about your story for leaving your last role. You will almost certainly be asked why you left your previous job. Be honest, but positive. Don’t badmouth your old employer. You can say something like, “The company was restructuring, and unfortunately, my role was made redundant. I’m now excited about finding a new opportunity where I can use my skills in [mention a relevant skill].”
Prepare some questions to ask them. An interview is a two-way street. Asking thoughtful questions shows you’re engaged. Ask about the team, the challenges of the role, or the company culture.

Part 5: Looking After Yourself – This is a Marathon, Not a Sprint

Losing your job doesn’t just affect your bank balance; it can take a huge toll on your mental and emotional wellbeing. It’s vital to look after yourself during this time.

Create a Routine

When you don’t have a job to go to, the days can feel long and empty. The temptation to stay in your pyjamas and watch daytime TV is strong, but it’s not going to help in the long run.

Creating a routine will give your days structure and purpose.

Get up at a consistent time. You don’t have to get up at 6 am, but try to get up and dressed at a reasonable hour every weekday.
Schedule your job hunting. Dedicate a set amount of time each day to looking for jobs, updating your CV, and writing applications. Maybe it’s two hours in the morning and one in the afternoon. Don’t spend all day doing it – you’ll burn out.
Make time for other things. Schedule in time for exercise, hobbies, and seeing people. This is just as important as the job search.

Stay Active and Healthy

Your physical and mental health are closely linked. Looking after your body will help you stay resilient.

Exercise regularly. You don’t have to run a marathon. A brisk 30-minute walk each day is enough to boost your mood and clear your head.
Eat well. It can be tempting to reach for junk food when you’re feeling down, but eating a balanced diet will give you more energy and help you feel better.
Get enough sleep. Worry can disrupt your sleep, but try to stick to a regular sleep schedule. Avoid screens before bed and try some relaxation techniques if you’re struggling to switch off.

Stay Connected

It’s easy to feel isolated when you’re not seeing your work colleagues every day. Make an effort to stay in touch with people.

Meet up with friends. Arrange to have a coffee or go for a walk. Talking to people will help you feel less alone.
Don’t be afraid to tell people your situation. True friends will want to support you.
Look for free or cheap social activities. Check out local community groups, volunteering opportunities, or free events at your local library or park.

Remember Your Worth

Losing your job can be a massive knock to your self-esteem. You might start to feel like you’re not good enough.

It’s crucial to remember that your job is not your identity. You have been made redundant; you are not redundant as a person. You still have all the skills, experience, and personal qualities you had last week.

Write down a list of your achievements, both in and out of work. Remind yourself of what you’re good at. This experience does not define you.

Part 6: A New Direction? – An Opportunity for Change

This might feel like the last thing on your mind right now, but losing a job can sometimes be an unexpected opportunity. It forces you to stop and think about what you really want.

Perhaps you were unhappy in your old role but were too comfortable to leave. Maybe you’ve always had a secret ambition to do something completely different. Now might be the time to explore that.

Think about what you enjoy. What are you passionate about? What parts of your previous jobs did you like the most? What did you hate?
Consider retraining or learning a new skill. There are lots of free or low-cost online courses available. Websites like Coursera, Udemy, and the Open University offer a huge range. The government also funds skills ‘bootcamps’ in areas like digital skills and green technology.
Could you go freelance or start your own business? If you have a marketable skill, perhaps you could work for yourself. It’s a big step, but it could offer a new level of freedom and satisfaction.

This isn’t about putting pressure on yourself. The priority is to get back on your feet. But it’s worth planting a seed in your mind that this could be the start of a new, more exciting chapter.

Final Thoughts: You Will Get Through This

Losing your job is tough. There will be good days and bad days. There will be days when you feel hopeful and energised, and days when you feel rejected and exhausted.

Be kind to yourself. Celebrate the small wins, like getting an application sent off or having a positive phone call with a recruiter. Don’t be afraid to ask for help, whether it’s from friends, family, or professional services.

This is a temporary situation. You are capable, you are resilient, and you will find your way through it. Before you know it, you’ll be looking back on this as the challenging period that led you to something new and, quite possibly, something even better. Good luck.