A Guide to Redundancy and Debt

This guide will look at options if you've been made redundant, or are worried about being made redundant, especially if you already have debt. It will look at consumer's rights, what happens during redundancy proceedings, and where to find additional support after redundancy.

We understand that going through redundancy can be a difficult time, and if you have debt with Lowell then you might be worried about whether you are still able to afford your payments.

We’re here to support you with your Lowell debt however we can. That’s why we’ve created this guide to redundancy and debt, so that we can address some of your questions and concerns.

Click on the links below to jump to the section you want to read and find out more about what redundancy is, where to seek advice, and how Lowell can support you if you’ve been made redundant.

What is redundancy?

Where can I find redundancy advice?

What to do when you're made redundant

What might I be entitled to if I'm made redundant?

Can I claim benefits if I'm made redundant?

I can't pay my Lowell debt, what options do I have?

I've lost my job and I'm in debt, how can Lowell help?

What is redundancy?

Being made redundant is a type of dismissal from your employer. It can often be a difficult and emotional time. Usually, employees are made redundant because of reasons outside of their control, such as the organisation needing to cut costs, shutting down, relocating, or a restructure resulting in previous roles no longer being necessary.

Where can I find redundancy advice?

As part of the redundancy process, you should be told the reasons why you’re being made redundant by your employer.

If you have any questions, there are lots of organisations who can offer support or advice, such as:

• ACAS provide employees and employers free, impartial advice on workplace rights, rules and best practice.
• Citizens Advice can also offer free and impartial advice about your legal rights when leaving a job; whether that’s through redundancy, dismissal, or resignation.

You can also find out more about your legal rights around redundancy through GOV.uk.

What to do when you’re made redundant

Being made redundant is not a nice experience for anybody, especially if it is unexpected.

Once your redundancy has been confirmed - and after the initial shock has subsided - it may be time to start thinking about what your next steps could be, and finding out what you might be entitled to.

Make a start by:

• Seeking financial advice. Get in touch with free, independent financial organisations like StepChange or Citizen’s Advice. They can support you with managing your finances while you look for a new job. They might help you to put together a budget, which could help you to keep a firm handle on what you have coming in versus what’s going out. There are also lots of tools available online to help with this, and Lowell customers can use our free budget calculator.
• See what additional financial support you might be entitled to. Being made redundant is likely to have an impact on your finances which is why it’s important to check whether you could be claiming any additional financial support. At Lowell, we have our own benefits calculator powered by entitledto that is free to use and will help you get an idea of what you could be eligible for.
• Speak to us. If you have a debt with Lowell and have been made redundant, it’s important to get in touch with us and let us know. Once we’ve heard from you, our team can look into your account and see what we can do to help you, based on your personal circumstances.

What might I be entitled to if I’m made redundant?

Being made redundant might mean you are eligible for certain forms of income, such as:

• Redundancy pay – You can get redundancy pay as long as you’ve been in your job for at least 2 years. GOV UK has a statutory redundancy calculator tool you can use to see what you might be entitled to.
• Statutory notice pay – Along with redundancy pay, you should be paid by your employee through your notice period or in lieu of your notice.
• Holiday pay – Holiday pay includes any paid time off you were entitled to take but haven’t used. Most employees are entitled to around 5 or 6 weeks of paid holiday per year.
• Money owed by the employer – Be sure to check if you’re owed any money by your employer. This can include various things such as unpaid wages, overtime, bonuses, and any commission or other expenses.

Can I claim benefits if I’m made redundant?

Yes, you can. There are various benefits out there that you can apply for if you’ve been made redundant, including:

• New Style Jobseeker’s Allowance (JSA) – You could be eligible for New Style JSA if you’re unemployed (and working less than 16 hours per week), haven’t reached pension age, and have made enough National Insurance contributions.
• New Style Employment and Support Allowance (ESA) – Similar to New Style JSA, you can apply for New Style ESA if you’ve got a disability or health condition which has an impact on how much you can work.
• Universal Credit – If you’re on a low income and have £16,000 or under then you might be able to get Universal Credit.
• Pension Credit – You could qualify for Pension Credit if you’ve reached state pension age. If you have a partner, then they also need to have reached this age.

You can also check out the Lowell benefits calculator, powered by entitledto, to get an idea of which benefits you could be eligible for, or what other types of financial support you could be entitled to.

I can’t pay my Lowell debts, what options do I have?

We completely understand that if you have outstanding debt and have been made redundant, that you might be worried and unsure what to do.

If you’re struggling to pay your Lowell debt, it’s important to let us know about your change in personal circumstances. Our friendly team are specially trained to support you and find the best solution based on your situation.

You could also look into the different types of debt solution available from impartial organisations such as StepChange, to help manage your debt.

I’ve lost my job and I’m in debt, how can Lowell help?

Here at Lowell, we want to find the best solution for you. If you have debts with Lowell, we can help to find you the right kind of support and work out your next steps.

That’s why we want to promote having open and honest conversations about debt. If you contact us, our team are specially trained and will be completely supportive and understanding of your situation.

At Lowell, we understand that experiencing a big change in your personal circumstances can make things tricky when it comes to managing your debt. If you’re feeling overwhelmed, please get in touch with us to see how we can work together. Our main goal is to help you on your journey to becoming debt-free with Lowell in a way that is affordable and sustainable for you.

If you’re in difficulty, you can also find out more about the ways we can help support you over on our next steps page.

You can find helpful information about debt and how you can work with Lowell over on our debt guidance hub and on the Lowell blog.