“The top concern for millions of people now is getting through the growing jobs crisis.” Citizens Advice, July 2020.
In Surrey and across the country people facing redundancy after furlough are turning to us.
This is the story of one of them.
Layla (name changed) called our Adviceline and told us: ““I’m going to lose my job. I’ve been on furlough and I’ve just heard. I don’t know how I’m going to make ends meet. I want to get a new job, but who knows when that will happen?”
Layla lived with her 6-year-old son in a privately rented flat and had only a small amount of savings. For the last few years she’d been working for a shipping company. When their trade collapsed due to Covid-19 they began to scale back operations. Layla’s division was one they decided to close.
“I feel confused and I’m worried I’m not thinking clearly. How am I going to pay my bills?” When we said we could help her go through her redundancy rights and benefit options she began to feel better.
Redundancy Payment Rights
After checking Layla’s contract we confirmed she had redundancy rights because she’d been employed at the firm for more than 2 years. She was entitled to receive:
Benefit Entitlement Options
We then looked at other income Layla could claim while looking for a new job. She had the option of claiming:
New Style Job Seekers Allowance (NSJSA) a non-means tested benefit, as she had paid National Insurance for the previous two tax years.
Universal Credit (UC) Her savings were under £16,000, and she could claim for help towards her rent as well as an extra payment for childcare costs. Layla could continue to receive UC even if she found another job (as long as she was on a qualifying low income). We pointed out that if Layla received NSJSA it would count as income for Universal Credit.
Council Tax Reduction (CTR). We reminded Layla to apply to the local authority to see whether she could get a reduction in her council tax.
If you want advice about an employment issue, don’t sit and worry about it. The sooner you ask for help the sooner we can help you find a solution.