For example, if your monthly take-home pay was £1,000, you’d be able to keep £6,000 (six months' take-home pay) to cover your household bills and maintain your IVA payments. Any money received over this amount will need to be paid into your IVA.
If you do find work within the six-month period, it’s likely that a further proportion of the redundancy funds will need to be paid into your IVA.
Contact your IVA provider for advice as soon as your redundancy is confirmed. If you begin working again, please let them know as soon as possible so they can review your situation.
If we’re your IVA provider, please get in touch with us as soon as possible. If you’re worried about speaking to us, please know that we’re here to support you however we can.
Do your research on redundancy rights
Even if you've not yet been made redundant, or it's just a rumour at this point, it's still worth knowing what your rights are, just in case.
If you've been made redundant, you’ll need to understand your redundancy rights as well as what your options are. You can also use our online benefits calculator to see if you're entitled to any benefits. If you live alone, you may qualify for council tax benefit.
Review and update your budget
Keeping on top of your living expenses while looking for a new job is crucial. Hopefully, you'll find another job as soon as possible after being made redundant. However, there are other factors such as a lack of the type of job you're looking for, or changes in the economy, that you need to be mindful of.
Take a fresh look at your budget, and consider how you could save money on your living costs and household bills. For example, you could: