Losing your job, however it happens, is stressful, but you may be able to claim financial help straight away. Knowing what to claim, and in what order, helps you get money coming in as quickly as possible. This guide explains what benefits you can claim when you lose your job, how they fit together, and the practical steps to take first.
Act quickly
The single most important thing is to claim promptly, because most benefits start from the date you apply rather than the date you lost your job. The sooner you claim, the sooner your support begins, and with Universal Credit in particular there is usually a wait of around five weeks for your first payment, so an early claim matters. Do not wait until your savings run low; check what you can claim as soon as you know your job is ending.
Universal Credit
For most people, Universal Credit is the main benefit to claim when they lose their job. It is a monthly payment that helps with living costs and, if you rent, with your housing costs too. It is means-tested, so your savings and any partner's income are taken into account, and you cannot usually get it if you have more than £16,000 in savings. If you qualify, it can be an important source of support while you look for work.
New Style Jobseeker's Allowance
New Style Jobseeker's Allowance is based on your National Insurance contributions rather than your savings, so it is worth checking even if you have savings that would rule out Universal Credit. If you have paid enough National Insurance in recent years and you are available for and actively seeking work, you can claim it for up to six months. You can claim it on its own or alongside Universal Credit, where it is taken into account in the Universal Credit calculation.
If you were made redundant
If you lost your job through redundancy, you may have a redundancy payment as well as benefits. The redundancy lump sum is usually treated as savings for Universal Credit, so a large payment could affect or delay a means-tested claim, which is another reason New Style Jobseeker's Allowance is worth considering, as it ignores savings. Our guide to redundancy and benefits explains how the different payments are treated, so you can plan around them.
Help with other costs
Losing your job can open up help beyond the main benefits. You may now qualify for a reduction in your council tax through Council Tax Reduction, for help with health costs such as free prescriptions, and for other support that depends on a low income. Once your income drops, it is well worth doing a full benefits check, because you may be entitled to things you were not eligible for while you were working.
If you left your job voluntarily
You can still claim if you chose to leave your job or were dismissed, but there are some extra considerations. For Jobseeker's Allowance and the work-related rules of Universal Credit, leaving a job without a good reason can sometimes lead to a sanction, which reduces your payment for a period. If this applies to you, explain your reasons fully, get advice, and remember you can challenge a sanction you think is unfair.
The first steps to take
To get going, gather the information you will need, such as your National Insurance number, bank details, income and savings, and housing costs, then make your claims online. Claim Universal Credit and, if you may qualify, New Style Jobseeker's Allowance. Report the change if you already receive any benefits. If you are worried about money in the meantime, ask about an advance, and look at help from your council's hardship fund.
Keeping up your claim
Once you have claimed, there are things you need to do to keep your benefits coming, such as attending appointments, looking for work where that is expected, and reporting any changes. With Universal Credit you agree a Claimant Commitment setting out what you need to do, and meeting it keeps your payments on track. If your circumstances make the usual requirements difficult, explain this, as what is expected can be adjusted to your situation.
Look after your wellbeing
Losing a job affects more than your finances, and it is worth looking after your wellbeing as well as sorting out your benefits. Take the practical steps to get money coming in, but also use the support around you, whether that is family, friends, or organisations that help people back into work. Getting your benefits sorted quickly can take some of the immediate pressure off, which makes it easier to focus on finding your next role.
Support to get back to work
As well as financial help, there is support to help you find your next job, including help with searching and applying, and schemes for people who have been out of work for a while. Your work coach can point you to what is available, and there are also independent services and charities that help people back into work. Taking up this help alongside your benefits can shorten the time you are out of work.
Claiming as a couple
If you have a partner, remember that means-tested help like Universal Credit looks at your situation as a couple, including their income and your joint savings. This means a partner's earnings can affect what you can claim, and you make a joint claim rather than claiming alone. New Style Jobseeker's Allowance, by contrast, is based on your own National Insurance record, so it is not affected by your partner's income, which is another reason to check it.
In short
When you lose your job, claim quickly, as benefits start from the date you apply. Universal Credit is the main means-tested benefit, while New Style Jobseeker's Allowance is based on your National Insurance record and ignores savings, so check both. Look at help with council tax and health costs too, do a full benefits check, and ask about an advance if money is tight while you wait.
Do not delay
The clearest message when you lose your job is not to delay claiming, because benefits generally start from when you apply and every week you wait can be support lost. Even if you are hoping to find work quickly, or have some redundancy money, it is usually worth claiming what you can straight away and checking your full entitlement. Getting money coming in early takes the pressure off and gives you space to focus on your next step.
Get a benefits check
Because your entitlement changes when your income drops, a benefits check is one of the most useful things to do after losing your job. It works out everything you might now be able to claim, which is often more than people expect, and helps you claim it properly. A free check from a trusted service, or an online benefits calculator, quickly shows you where you stand so that you do not end up missing out on help you are genuinely entitled to.
Where to get help
Citizens Advice can help you work out what to claim. See our guides to New Style Jobseeker's Allowance and getting a benefits check.