It may be possible to reduce your payments and spread them over a longer period, newby86, though this would be at the discretion of your trustee.

Do you know what the terms of any redundancy package would be, newby86? If you were to receive any money over and above your statutory element then it is likely that that part may have to be paid over into your trust deed.

Many thanks for your advice Kevin, as far as I am not entitled to a redundancy package as I have not been with the company for 5 years. It would be 2 months salary untaxed which I would receive.

I'm just trying to plan ahead at the moment as looking at the job market I would not receive my current salary if I did move company.

Thanks again for your help.

Hi Newby86

May I ask who gave you the information on redundancy?
Although age can play a part if you are under 21, you are entitled to statutory redundancy pay after 2 years employment. Under 41 is 1 week per year over 41 is 1.5 weeks per year. The current upper limit is £450 per week. Remember this is statutory and your employer may choose to enhance that. Redundancy payment is tax free.

Your notice would be one week for each complete year, or greater if your contract states so (example 3 months notice may be in your contract). That is generally taxable although it depends on various circumstances whether it can be paid tax free or not. The employer can ask you to work it (it is notice of end of work) but most employers want employees to go immediately.

If you have five COMPLETE years of work you would be entitled to a MINIMUM of five weeks notice and five weeks statutory redundancy.

I realise this will not necessarily increase your payment much, but you should be aware of your entitlement and ensure you receive that.

It could be worth you checking out your Statutory Redundancy amount on this link (government link, so I hope it is okay to post in these circumstances) https://www.gov.uk/redundant-your-rights/redundancy-pay.

And check out your contract for contractual notice period.

You will also be entitled to have holiday pay calculated to the end of your notice period and any untaken leave paid to you. That is taxable.

Sometimes, sums are rounded up into a Severance pay which is paid tax free, however, your quote of 2 months tax free does not appear to add up to your basic entitlement unless you have not completed five years and it reverts to 4 weeks plus 4 weeks plus holiday pay. Thought you might like to check it out yourself.

Please also take into account that you are unlikely to receive any Jobseeker allowance until the end of your notice period and holiday period entitlement (even if it is paid to you in lieu).

Sorry to hear you might be made redundant. Particularly when you are already in a difficult financial position.