Redundancy in the UK: Your Rights and What to Do Next

Redundancy is a common and legally defined process in the UK. In the first quarter of 2026, approximately 100,000 people were made redundant per quarter in the UK (ONS, 2026). Understanding your legal entitlements, acting quickly on benefits, and approaching your job search strategically minimises both the financial and psychological impact.

Your statutory rights — what you are owed

Under the Employment Rights Act 1996, employees made redundant after 2 or more years of continuous service are entitled to statutory redundancy pay:

For redundancies on or after 6 April 2026 in England, Scotland and Wales, the weekly pay used for the statutory calculation is capped at £751 and the maximum statutory redundancy payment is £22,530 (GOV.UK, 2026). Northern Ireland has separate limits. Your employer may offer enhanced redundancy terms above the statutory minimum — check your contract and the current official guidance.

Universal Credit and other benefits after redundancy

If you are below pension age and have no income, you may be eligible for Universal Credit — the UK's main benefit for working-age people on low or no income:

• Apply immediately at universal-credit.service.gov.uk — UC is not backdated
• You will need to verify your identity online (or at a Jobcentre Plus)
• There is a 5-week wait for your first payment — a budgeting advance is available if you need funds urgently
• If you receive a redundancy payment, it counts as capital and may affect your UC entitlement
• If you have a partner with income, their earnings affect your UC payment

Updating your CV after redundancy

• Update your CV immediately while your achievements and metrics are fresh
• List accurate employment dates — do not extend dates to hide the redundancy
• Use "Made redundant" or "Position eliminated due to restructure" as your reason for leaving — this carries no stigma in the UK
• Request a LinkedIn recommendation from your manager, colleagues, or direct reports before the team disperses

Explaining redundancy in UK interviews

"The company went through a significant restructure in early 2026, resulting in the elimination of my department. It was a business decision unrelated to performance — I was well supported through the process, received a positive reference from my manager, and have stayed in touch with the team. In the meantime, I've been [note any consulting, professional development, or volunteering] and I'm now focused on finding a role where I can [connect to the target role]."

Sources: Employment Rights Act 1996 — Redundancy Pay (legislation.gov.uk); ACAS — Redundancy guide (acas.org.uk, 2026); GOV.UK Universal Credit (universal-credit.service.gov.uk, 2026); ONS Labour Force Survey (2026)