There are several things to do immediately you are made redundant., but the first thing you need to do – obviously – is to sign on for Job Seekers Allowance.

Jobseekers Allowance is for people who are available for, and actively seeking, work. There are two types of allowance:

• A contribution-based allowance (JSA-C) which you can get for up to 26 weeks if you have paid sufficient National Insurance contributions. This allowance is not affected by redundancy or severance payments, but if you receive a pension from work the allowance is reduced by any amount over £50 a week.
• An income-based allowance (JSA-I) which you may be able to get if your income and capital are below certain limits. You cannot claim this allowance if you have a partner who works 24 or more hours a week or you have capital (savings) of more than £16,000. NOTE: A statutory redundancy payment counts as capital, but contractual redundancy or severance pay only count as capital up to the amount of the statutory redundancy payment you would be entitled to. You can work out the statutory redundancy payment you are entitled to by going to the Department for Business Innovation and Skills website and using their ready reckoner.

As you have not left your job voluntarily, you should be allowed to claim a form of Job Seekers Allowance straight away.

Once you have sorted out your Job Seekers Allowance, investigate the whole benefits system thoroughly.

The benefits system is very complicated, and it’s in your own best interests to make yourself aware of exactly what you are entitled to claim – or what other people in your household might be entitled to claim. Investigate in particular:

• Housing Benefit
• Council Tax Benefit
• Mortgage Assistance (you may get help with the interest part of your mortgage payments if you claim income related Job Seekers Allowance)
• Education Maintenance Allowance (young adults over 16 may be able to claim this allowance).

But don't stop there. Your local Citizens Advice Bureau will be able to help you find out what you and other members of your family may be entitled to claim, tell you where to get the appropriate forms, explain what documentary evidence you need to provide, and direct you to the right Government Department to make your claim.

Checking out the benefits system can be time-consuming, boring and depressing. You might need to fill in a lot of forms, gather together a lot of information, visit a lot of government offices, and answer a great many (actually quite intrusive) questions – but the results will be worthwhile because they will help you to find out exactly where you stand financially and come up with a reasonable survival plan.

Once you get your benefits sorted out, you will have some money coming in - it could be a derisory amount, but it's still money. And you might be able to stop worrying quite so much about how you are going to pay your mortgage or your rent or your council tax, or how you are going to manage to keep one or more of your children on at school...

Benefits aren't great – certainly no honest person is going to get rich on them - but they're better than nothing. And don’t forget! You are entitled to benefit. You've paid in – probably for years; there’s no need to feel bad about trying to get some of your own money back.

If you've already signed on and have not investigated what other benefits you might be entitled to apart from Job Seekers Allowance - make plans to it as soon as possible. What, for example, is the point of struggling to pay rent or interest on a mortgage if you don't need to?

Geoff