• Find us on:

Redundancy and benefits


Some benefits are means tested. This means that for some benefits, the government will look at how much money you have coming in or as savings before deciding whether you are entitled. Your redundancy lump sum will count as savings and could reduce the amount of benefit you are entitled to.

Voluntary Redundancy

Voluntary redundancy does not affect your entitlement to benefits. Even if you chose voluntary redundancy, it is still a dismissal in law and so there should not be a barrier to you claiming JSA.  Knowing this, it is a good idea not to state that your redundancy was “voluntary” since this may cause confusion.

Alternative employment

Your employer must offer you alternative employment if this is available. If you reject the offer of alternative employment because it is unsuitable, this should not affect your entitlement to benefits.

You are entitled to a minimum four week trial period of the alternative employment. If you leave during the trial period, you will still be considered redundant, and therefore entitled to benefits.

If you refuse alternative employment which your employer considers suitable, you may lose your entitlement to redundancy pay and benefits. In such a situation you can make a claim to the Employment Tribunal. If you produce evidence to the Job Center that the matter is being decided by the Employment Tribunal, this should reinstate your entitlement to benefits whilst your case is pending in the Employment Tribunal.

Updated: 14/03/2020

Best of the Web

The Money Saving Expert – Redundancy Checklist

Turn2us – What benefits can I get after Redundancy?

Citizens Advice – Preparing for after redundancy


The information and content on this website is provided for general information purposes only and is not intended to constitute legal or other professional advice. Legal information or content on this website relates only to the laws of England and Wales. You should not take any actions based on information found on this website without first seeking appropriate legal advice with respect to your specific matter. No representations or warranties are made about the suitability, currentness, comprehensiveness and/or accuracy of the information and other content contained on this website. It should be noted that legal information and content can rapidly become out of date and we give no undertaking to keep this website up to date. All liability for any loss or damage of any kind which may be suffered as a result of accessing and using the information and/or content of this website is hereby excluded to the full extent permitted by law.