GMB ReachOut Redundancy Toolkit by GMB Reachout

Redundancy Toolkit

www.gmbreachout.org.uk

GMB Reach Redundancy Toolkit

Out

Being made redundant is a shock, both emotionally and financially. This handbook aims to give you the information you need to regain control of your career and your finances. It covers key steps you can take and suggests sources of advice and support. Your Rights Steps to consider now if you think your job may be under threat and your rights at work if you are going through redundancy. Your Options Reviewing your CV and applying for new jobs, plus other options you might consider, from retraining or starting your own business to apprenticeships and early retirement. Entitlements How your state pension rights are protected and benefits you may be able to claim now, such as Jobseekerâ&#x20AC;&#x2122;s Allowance, Universal Credit and Council Tax Reduction. Managing Money Making sure you are claiming all the income and insurance pay-outs you are entitled to, dealing with bills and your rent or mortgage, and what to do if debts become a problem. Useful Contacts Phone and internet help with all types of redundancy-related issues, plus useful online tools, such as the governmentâ&#x20AC;&#x2122;s statutory redundancy pay calculator.

GMB Reach Out has worked with redundancy situations right across the North West & Irish Region. From organising CV writing and IT courses to establishing local networks that enable people to stay in touch with former colleagues and hear about job opportunities. This handbook aims to add to the help and support we offer to GMB members, their families and colleagues. For continued support and advice from the GMB make sure you continue with your membership. If you have lost your job or are unemployed the fees maybe reduced to 5p a week as long as you are not being represented in a legal case. 3

Contents Job Worries

Things to consider now if you think your job might be at risk. Your rights if your employer suggests short-time working, lay-offs or changes to your contract. Managing Money

Making the most of your redundancy pay, reviewing your budget, insurance and benefits you might be able to claim, organising your household money. Money Worries

Keeping up with bills and loan repayments. Insurance benefits an special tariffs that may help. What to do if debts become a problem and where to get advice.

Redundancy Rights

Next Steps

Checking your redundancy is fair, your rights to redundancy pay and how much you should get. Other redundancy rights and what to do about any pension you have built up with your employer.

Brushing up your CV and applying for new jobs, updating your skills and learning new ones, thinking about starting your own business.

Entitlements 35

Schemes and benefits to help, if you have problems paying your mortgage, what to do if you fall behind with your rent, tied accommodation and moving home because of work.

National insurance credits to protect your entitlement to state pension. Your entitlement to Jobseekerâ&#x20AC;&#x2122;s Allowance, Universal Credit or other state benefits you maybe able to claim. Early Retirement

Things to consider if you are offered early retirement instead of redundancy, getting the best pension you can. What happens if you retire and then go back to work.

Your Home

Useful Contacts

Where to find out more about the topics covered in this handbook, useful online tools and websites, where to get help and advice.

Job Worries

Job worries

Job Worries

Alternatives to redundancy

If jobs may be under threat at your workplace, it is useful to check your options and rights now, so you are better placed once any changes are announced.

If business is going through a downturn but this is expected to be temporary, your employer may offer alternatives to redundancy. For example, you may be asked to cut the number of days or hours you work each week (called short time working), take whole days off (called a lay-off ), or do a different job altogether.

Carrying on as usual in a workplace where redundancy rumours are rife is unsettling. You are probably worried about your own future. In addition, morale may be low, creating an unhappy and stressful work environment. If there are vacancies in your area, you might want to think about moving on before any redundancies are announced. But leaving voluntarily could mean missing out on valuable redundancy rights - see the Redundancy Rights section of this toolkit. Also bear in mind redundancy may not be the only option your employer will offer.

Whatever the offer, it’s worth considering and taking advice from your GMB Rep(s) before making up your mind. Short time working You are asked to work fewer hours each day or fewer days each week on reduced pay. Check whether your contract of employment already allows for this or check with your GMB Rep(s) if this has been agreed. Check if your employment contract allows you to take on another paid job while working short time. Lay-offs You are asked not to go into work and your pay is usually reduced. This arrangement is only permitted if your contract of employment allows lay-offs or it is customary in your line of work. Your employer must pay you at least “statutory guarantee pay”. This is payable for a maximum of 5 days in any three month period. Check your contract of employment or with your GMB Rep(s) what your employer must pay. Furlough See Coronavirus Job Retention Scheme (next page)

Furlough - Coronavirus Job Retention Scheme (19th March to 31st Ocotber 2020) To furlough means to “lay off or suspend temporarily”, usually without pay. It’s not a recognised term in UK employment law, However it is commonly used in the US. Government guidance says someone is furloughed if they remain employed but are not undertaking any work.

How does the UK’s furlough scheme work? Under new rules from March 1 and running for at least for 4 months, companies can now furlough employees rather than fire them. Through this scheme, the government will pay up to 80 per cent of people’s wages, up to a maximum of £2,500 per month. Anyone working in a full time job (or on a PAYE basis) on March 19 can be furloughed. This includes people on zero hours contracts or those working flexibly. Being placed on furlough is similar to gardening leave. You would still be paid by your employer and will still pay taxes from your income – but you would not be able to continue working for your employer for the duration of the furlough. In this case, you would effectively be paid not to work until the end of June. If you have been put on furlough because of the coronavirus, your employer can claim up to 80% of your wages plus any employer National Insurance and Pensions Contributions. Employees put on furlough do not need to do anything as their employers are responsible for making claims. Individuals cannot apply for the scheme themselves. As of 31st July the UK government brought in a new law to ensure furloughed employees receive full redundancy payments. The aim of the law is to ensure furloughed employees receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate. https://www.gov.uk/government/news/new-law-to-ensure-furloughed-employees-receivefull-redundancy-payments

Job worries 8

Reducing the pay gap

Alternative work

New Style Jobseeker’s Allowance

Before making redundancies your employer should, if possible offer you a suitable alternative job.

You may be able to claim this if you are on short-time or you are laid off and not getting pay or statutory guarantee pay. Contact Jobcentre Plus Online or by Telephone for further details (see Useful Contacts).

Other State Benefits — Universal Credit. Short-time working, lay-offs or a change to your contract and fluctuations in your earnings can be topped up by the government if you apply for the Universal Credit. Use the Turn2Us tool (see Useful Contacts) for advice on what you are entitled to and for idea of how much you might get.

How long can this last?

Changes in your contract

There is no limit to how long you can be laidoff or put on short time working. However, if you have been in this position for four weeks in a row or six non-consecutive weeks within a 13 week period, you may be able to claim redundancy. In that case you will be entitled to redundancy pay (see Redundancy Rights).

Your employer might want to change the terms of your contract - for example, a cut in your pay or a switch to part-time employment. But your employer cannot do this without your consent. Before agreeing to any change, check with your employer how it would affect pay-related benefits and rights, such as:

For more information, contact the Advisory, Conciliation and Arbitration Service (ACAS) www.acas.org.uk/ advice or the Labour Relations Agency www.lra.org.uk

• Future redundancy pay • Employer pension contributions • Sick pay entitlement

if you live in Northern Ireland (see Useful Contacts).

Discuss your options with your GMB Rep

What counts as suitable depends on, for example, your skills, the pay, hours, location and status of the job. You can try out the job for a four week trial period. If during this time you decide it is unsuitable your redundancy rights will not be affected. If your employer has suitable vacancies but does not offer them to you, this could count as unfair dismissal, in which case you could make a complaint to an employment tribunal. If you turn down any reasonable alternative employment, you could lose your right to redundancy pay. But, if you decide the job is unsuitable and your employer disagrees, you may have to ask an employment tribunal to decide. For information and advice contact your GMB Rep, ACAS or, in Northern Ireland, the Labour Relations Agency.

Redundancy Rights

Redundancy Checklist

Whether youâ&#x20AC;&#x2122;re expecting it or not, redundancy can be a serious blow to your finances. Understanding what is going on and what you are entitled to can help make the best of the situation.

Challenge your redundancy if you suspect it is an unfair dismissal.

Redundancy happens when your job disappears. It is not the same as getting the sack because you have done nothing wrong and your abilities are not being questioned. The most common reasons for employers making people redundant are because they either need to cut their costs, close down, relocate or the need for a job no longer exists.

Check how much statutory redundancy pay you are entitled to.

How your employer decides who goes Sometimes it is obvious which jobs will go. For example, new technology can make a particular type of work unnecessary. If a job still needs to be done, but with fewer people, it may be difficult to see why you have been chosen. Before announcing any redundancies, your employer might look at other options. For example, you might be asked to transfer to different tasks or work shorter hours - see Job Worries for more information about your rights in these situations. Your employer may ask for voluntary redundancies and offer early retirement - see Early Retirement.

Know your rights to a minimum period of notice and time off to look for another job. Decide what to do about any pension rights.

Keeping you informed Your employer must talk to everyone involved, including the GMB, about what is going to happen. You should be told why there have to be redundancies and how people will be selected. For more details on the consultation process see the redundancy section online at www.gov.uk

A fair process

Unfair dismissal

Maternity Leave

If compulsory redundancies are necessary, then your employer must come up with a fair way of selecting people. It may look at some or all of the following:

By law, your employer must not discriminate against you for any of the following reasons: your sex, race, age, sexual orientation, religion, marital status, disability, trade union membership or because you work part time or on a fixed term basis. If you suspect you have been chosen for any of these reasons, then you may have a case for unfair dismissal.

If you are on maternity leave then your employer must still contact you and keep you informed of the situation if your role is at risk. You can still be made redundant if there is no job for you to come back to, but you receive some protection when you are on maternity leave in that if there are suitable alternative roles that will remain, then your employer must offer them to you.

• Any redundancy procedure agreed with the GMB • Attendance records • Disciplinary record • Skills and experience (this can sometimes lead to people having to reapply for their jobs) • Standards of work

You should first appeal against the decision to your employer. Put your appeal in writing, explaining why you think you have been selected unfairly and what you want your employer to do to put the situation right. If you are still not satisfied, you can take your employer to an employment tribunal. For advice on this contact your GMB Rep, ACAS or, in Northern Ireland, the Labour Relations Agency - see Useful Contacts.

Staff in, staff out Just because your employer is making people redundant doesn’t mean it cannot take on new staff. They may employ someone to do a different job where you work or to do your job at different location. If you think you should have been offered the job, first check your contract of employment and then get advice from your GMB Rep or a solicitor.

Redundancy Rights

Redundancy Timetable Employer considers redundancies

Individual Redundancy

Collective Redundancies 45 days before first dismissal if 100 or more employees are to go over a period of 90 days Employer must start to consult with the GMB (and other trade unions). Good practice to consult with employees too.

Within a reasonable time Employer must arrange a meeting with you to explain what is happening and why. You can raise objections and suggest alternatives to redundancy.

30 days before first dismissal if 20-99 or more employees are to go over a period of 90 days Employer must start to consult with GMB (and other trade unions). Good practice to consult with employees too.

Consultations take place and include consideration of ways to avoid redundancies - for example, alternative work, short-time working or lay-offs. 12

Employer considers objections and, if redundancy is to go ahead, must confirm this to you in writing. You have a right to appeal and can ask for your appeal to be heard by an independent person, for example arranged through ACAS.

You receive redundancy notice.

You must be given at least the statutory notice period - one to 12 weeks depending on the length of your employment.

Job ends.

Redundancy pay

Statutory redundancy pay

You may be entitled to statutory redundancy pay - a lump sum to compensate you for the loss of your job. This is the minimum required by law. Many employers offer more generous redundancy packages.

You are entitled to redundancy pay as long as you have worked continuously for your employer for at least two years. If you work on a casual basis and have no contract of employment, or you are an agency worker or temp, then you are unlikely to qualify for redundancy pay.

Your final pay packet is likely to include other payments as well as redundancy pay. If these are due to you under your contract of employment (rather than being compensation for losing your job), they will be taxable in the same way as your normal pay. Payments might include any of the following: Wages owing and bonus payments Tax and national insurance contributions will have been deducted as usual from these payments before you get them. Pay in lieu of notice If your employer does not want you to work out your notice period, you will be offered a lump sum instead. This is called pay in lieu of notice (Pilon). This money is taxable if your employment contract entitles you to this payment or it is normal practice where you work. Holiday pay owing Your employer may ask you to take some holiday during your redundancy notice period. You only have to do this if your employment contract says you must. Otherwise, it is up to you. You may decide the money is more useful if you are about to become unemployed.

The amount of money you get depends on how long you have continuously worked for your employer, how old you are and how much you are paid. By law you are entitled to the following: • Half a week’s pay for each full year of service while you were under age 22 • One week’s pay for each full year of service between the ages of 22 and 40 • One and a half week’s pay for each full year of service after your 41st birthday. But the calculation above is based only on a maximum of 20 years service and pay up to a maximum of £400 per week. To check how much statutory redundancy pay you are entitled to, use the redundancy pay calculator on the gov.uk website see Useful Contacts.

Redundancy Rights

When you get redundancy pay You should be paid on your last day at work although you can agree a later date. If you have problems receiving what you are owed, you can take your employer to an employment tribunal. If your company has gone out of business or is unable to pay you, the Redundancy Payments Office (part of the government’s Insolvency Service) will pay you the statutory amount instead. The insolvency firm dealing with your employer should give you form RP1 to make a claim. Alternatively, you can download the form from the Insolvency Service (see Useful Contacts). The Redundancy Payments Service Helpline can also help if you think your employer has made a mistake calculating your statutory redundancy pay.

Tax and redundancy pay You do not pay tax on the first £30,000 of redundancy pay. If you received any non-cash benefits as part of redundancy package, such as a company car or a computer, this will be given a cash 14

value and added to your redundancy pay for tax purposes. So if you take over a company car valued at £10,000 and you receive redundancy pay of £25,000 your redundancy package will be worth £35,000 for tax purposes. If you receive more than £30,000, you will have to pay tax at your highest rate on the excess. For example, a higher rate tax payer has to pay 40% tax (in year 2019- 2020) on any amount over the £30,000. but if you do not receive your redundancy pay or P45 until after you have left your employer, you will only pay basic rate tax on the excess at the time you receive it. You include the pay on your tax return and pay the remaining through the self assessment tax system. If you receive more than £30,000, and you do not need the extra to meet your living expenses, you could consider paying the excess into a pension scheme. In that case, you would get some or all of the tax back in the form of relief on the pension contribution - see Managing Money.

Other redundancy rights Having been notified of your redundancy, you have various rights to help you adjust and find new work. You are also entitled to a minimum period of redundancy notice as set out in the table on page 15.

Redundancy notice The minimum period of notice you should be given is shown in the table on page 15. But you must be given longer than the statutory minimum shown there if your contract of employment gives you the right to a longer period.

Minimum Notice Period If you have been Employed:

The minimum notice you should be given is:

At least one month up to two years

One week

Over 2 years up to 12 years

One week’s notice for each year worked

More than 12 years

12 weeks notice

Example If you have been employed 18 months, you should be given at least one week’s notice If you have been employed five years, you should be given at least five week’s notice If you have been employed 20 years you should be given at least 12 week’s notice

Time off to look for work or training

Gardening leave

You are entitled to time off to search for work or undergo training, provided you have worked continuously for your employer for at least two years.

Your employer might ask you to serve out your redundancy notice period away from work (called “gardening leave”). As you are still legally employed you must stick to the rules of your contract, such as any confidentially clauses. Your employer may offer you gardening leave because you have access to confidential information or customers and it wants a lapse of time before you start working for a competitor.

The amount of time you can take off has to be reasonable and you are entitled to two-fifths of a week’s pay while you are off. For example, if you work a five day week and take two days off in total to attend interviews, then your employer will pay you for this time. If you take four days off in total you may only be paid for the first two days. Some employers are more generous so it’s worth discussing when negotiating your redundancy. If your employer refuses to give you reasonable time off, speak to your GMB Rep, ACAS or the Labour Relations Agency in Northern Ireland see Useful Contacts.

If you are placed on gardening leave, your employer can call you back to work if you are needed. During this period you receive your normal salary and benefits but not allowed to start a job with a new employer.

Redundancy Rights

Leaving early

Last day checklist

If youâ&#x20AC;&#x2122;re offered a job and your new employer wants you to start before your redundancy notice ends, speak to your current employer and see if you can leave early without losing redundancy pay. Put your request in writing saying when you want to leave. If your employer refuses, seek advice from the GMB, Citizens Advice or ACAS - see Useful Contacts. If you leave early without your employerâ&#x20AC;&#x2122;s permission, you could lose some or all of your redundancy pay.

On your last day at work you should receive the following

Tied accommodation If your home is provided through your work, being made redundant means you might lose your home along with your job. Generally speaking, if your job includes a home where you have to live to do the work (such as landlord living on pub premises), then you will probably have to leave your home when the job ends. However, if you are employed and it is merely convenient for the job that you live in the accommodation provided, you may have more rights. Whatever the situation, you must be given some notice before you have to leave. The amount of notice you should be given may be set out in your employment contract or service occupancy agreement if you have one. If you are an assured shorthold tenant (check your lease to see if this applies) and your tenancy is for a fixed period of six months or more, then you must be given at least two months notice. If you are likely to lose your home as a result of being made redundant, contact your local housing associations and or contact your local authority housing advice service to discuss your housing options. For more details see Your Home.

Any redundancy pay, wages, holiday pay and other outstanding money due to you. Job references from your employer. A letter stating the date of your redundancy. Your P45 (to give to a new employer so that you are taxed correctly) Details of your pension arrangements (see overleaf ).

Pension rights If you’re a member of an occupational pension scheme through work, you need to decide what to do with your pension once you leave. The choices you have depend partly on what type of scheme it is: defined contribution or defined benefit. To find out what type of pension scheme you are in and what rights you have, contact your HR department. For further information on employer’s pension schemes, visit The Money Advice Service or The Pensions Advisory Service or the Pension Wise websites provided by the Money and Pensions Service see Useful Contacts.

Defined contribution occupational scheme These are also known as money purchase schemes. You and your employer make contributions to the scheme which are invested. This builds up a fund that you use at retirement to provide your pension. The amount you get depends on how much has been invested and how well your investments have performed. If you are made redundant you have the following options: • Leave the fund in the scheme to carry on growing • Transfer the fund from your current pension scheme into another money purchase scheme. • Transfer the fund into a defined benefit scheme if your new employer runs one. Speak to an independent financial adviser to be clear about your options.

Redundancy Rights 18

Defined benefit occupational scheme You are promised a given amount of pension at retirement. Under the most common type of defined benefit scheme - final salary scheme - the amount is based on how long you have worked for your employer and your salary at retirement or when you leave if earlier. If you are made redundant you will have to do one of the following: • Leave your pension with your employer and when you retire you will receive a pension from that scheme • Transfer your pension into a new employer’s scheme if it will allow you to. Unless your new job is in the public sector, it is unlikely to offer a similar scheme. • Transfer your pension contributions into your own personal pension. • If you are old enough you may be able to start drawing down from your personal pension - see Early Retirement.

In general, it is usually best to leave your contributions in the scheme. You should only transfer out of the scheme with good reason - for example, if you are concerned that the scheme is not adequately financed and your old employer might go out of business. In that situation, at least part of your pension would be protected by the Pension Protection Fund - see Useful Contacts.

Other schemes at work A pension scheme you belong to through work is not necessarily an occupational scheme. It could be a group personal pension or stakeholder scheme - these are types of personal pension that are linked to you, and not a particular job. This means, following redundancy , you can carry on with the scheme as normal. However, any contributions your employer was paying to it will stop and if your employer has negotiated special terms, such as reduced charges, these might no longer be available to you.

Next Steps

Next Steps One of the next steps in life after redundancy is usually to look for a new job. But you might want to consider other options too, such as retraining or starting your own business. It may seem a cliché but rather than a door closing, redundancy could be the chance to try something new and possibly more satisfying than your old job. This section looks at organising your search for a new job, from brushing up your CV to attending job interviews. It also looks into the opportunities for retraining or setting up your own business and where you can help and advice.

Support from your employer While you are working your redundancy notice, you are entitled to reasonable time off to look for a new job, provided you have worked continuously for your employer for two years or more. As long 20

as the amount of time you take off is reasonable, you should be paid for most or all of this time - see Redundancy Rights. Check whether, as part of the redundancy arrangements, your employer has arranged for any training and careers advice to help you find a new job - if not contact GMB Reach Out.

Brushing up your CV Your CV - a brief history of your work achievements and qualifications - is your gateway to getting interviews. Especially during a recession or downturn there may be hundreds of applicants for a single vacancy. Recruiters will not have time to look in detail at each application. Therefore your CV has two main aims: • Grab the recruiter’s attention with a few key facts about your suitability. • Quickly deliver relevant information to back up that first impression. It is worth spending some time working on your CV to make sure it fulfils these

aims. GMB Reach Out can help with CV writing - check to see if your employer is providing careers advice including CV writing as part of the redundancy arrangements. You can find other sources of guidance on CV writing at your local library or online at www.gov.uk or https://nationalcareers.service.gov.uk/

CV tips • Start with a short “personal profile” tailored to the particular job. • Keep your CV to two sides of A4 if you can • Focus on the last ten years • Include dates for each job. • Do not leave gaps • Check and correct spelling and grammatical errors • You may save several copies of your CV which you can tweak to match each role you apply for.

Where to look for jobs Jobs are advertised in all sorts of places including the sources in the table below. It is also worth contacting employers direct, because companies don’t always advertise their vacancies - an advantage of doing this is that fewer people will know about the vacancy which can mean less competition for the job. Source

Type of help

Jobcentre Plus

This has the UK’s largest database of job vacancies. You can find out about jobs on the internet or by phone. You can search for jobs in England, Scotland and Wales. For jobs in Northern Ireland see www.jobcentreonline.com

Recruitment agencies

For agencies in your area search www.recruitmentdirectory.co.uk or For agencies which cover particular job search https://www.agencycentral.co.uk

The internet

Newspapers

Many employers and newspapers advertise jobs on their websites. There are also online employment agencies such as www.monster.co.uk and www.totaljobs.com as well local recruitment agency websites. You can use a computer and access the internet at public libraries if you don’t have your own access. Many local newspapers advertise jobs and national newspapers often cover different types of jobs on different days . Your newsagent or public library should be able to tell you about any special trade journals which advertise jobs you may be interested in.

Professional & trade journals

If you are looking for work in a particular field, check what relevant journals exist - your public library can advise. Journals often carry job advertisements.

Shop windows

Local shops, businesses and supermarkets often put a card in their window or on a notice board inside

Work contacts

Don’t feel embarrassed to mention to people that you’re looking for a new job. Ask if they know of any potential openings that may be suitable for you either at their company or another firm.

Friends & family

They may hear of job opportunities which they can tell you about. If they are working they may even know of vacancies at their own firm and may be able to put in a good word for you. 21

Next Steps

Interviews Most people find interviews nervewracking. But good preparation can help you feel more confident and can improve your chance of getting the job. Your former employer may offer interview skills training and if you signed up with a recruitment agency, it will give you advice. There is also guidance on the government website at www.gov.uk. https://nationalcareers. service.gov.uk/get-a-job You may be able to get help improving your interview skills through a local National Careers Service Advisor. To find out whether there’s a centre near you and if you are eligible to use it’s services please contact the National Careers Service. (England) My World of Work at www.skillsdevelopmentscotland. co.uk (Scotland) and Careers Wales https://careerswales.gov.wale (Wales) see Useful Contacts.

Help with the costs of getting a job.

help you feel more confident and improve your chances of getting a new job.

If you are getting state benefits and have to travel a long way to an interview, you may be entitled to help with travel and overnight expenses. Ask your local Jobcentre Plus for details.

These may include taking on part-time or temporary work, volunteering or getting involved in a local community group. However, you should first check if this could affect any benefits you are claiming - contact Jobcentre Plus or a benefits adviser.

If you have been unemployed and claiming benefits for 26 weeks or more, your local Jobcentre Plus may be able to set up work trials for you. This scheme enables you to try out a job to see if it’s right for you. Any state benefits you receive continue throughout the trial, which can be up to 30 working days, you may be offered the job. If not, your benefits are not affected.

Retraining Redundancy may be a time to reassess your job ambitions and prospects. You might decide to update your skills or learn new ones to improve your chances of getting your desired job or open up new work opportunities. Formal training courses are just one way of improving your skills or learning new ones. There are several other things you can do to gain valuable experience which can

Interview tips Research some information about the company or organisation such as products, services, customer base and size. • Know the job role, read the job description. • Plan how you will get there and allow extra time. • Check what to take with you: contact and location details; copy of your CV; copy of any test you have been asked to bring; examples of your previous work experience; any identification or proof of entitlement to work in the UK if needed. • Prepare for questions you might be asked, for example: why you want the job; what you can bring to it; your strengths and weaknesses.

Retraining Training courses There are literally hundreds of training courses held at local colleges and public and private training providers. Some courses are during the day while others are in the evening. You have to pay for most courses, but if you are unemployed they may be free or at reduced rates. To find courses available in your area contact your GMB Union Learning Rep (ULR) or the GMB Reach Out team. If you are interested in distance learning, Learn Direct offers a wide range of courses which you can do at your own pace over the internet or you could consider courses offered by the open University - see Useful Contacts. Your local Jobcentre Plus can also offer advice and help with retraining. For example, it may be able to put you in touch with a local employer who is looking to recruit new staff and train them. GMB Reach Out can provide you with information on training courses that will improve your chances of getting a job. This could be basic skills courses or academic, professional, jobspecific and vocational courses.

Apprenticeships and Internships Apprenticeships are training schemes where you learn on the job. As an apprentice, you earn a wage while you are being trained and may eventually gain a qualification. For more details contact your GMB ULR or the GMB Reach Out team. Another option is to work as an intern. This is a good way to gain valuable experience which you can then include on your CV. Interns who work rather than observe should be paid at least the minimum wage, but this is not always the case. For example, if an employer is offering work experience you may have to work for free or only be offered expenses such as the cost of your fares to work and a lunch allowance. Internships are advertised in various places including the national and local press, trade journals and on the internet.

Help with training costs If you want to go on a training course but cannot afford it, you may be able to get a Advanced Learner Loan or a Grant or a Bursary . Eligibility does not depend on your income or savings. This can help pay for up to 80% of your course fees as well as giving you help towards other costs. You do not have to repay the loan until you finish studying and you may be able to borrow between ÂŁ300 and ÂŁ10,000. For information, talk to National Careers Service or see www.gov.uk and search for Advanced Learner Loan or speak directly to the training provider. 23

Next Steps

Starting a business Rather than getting a new job, you might consider starting your own business, either building on your previous experience, skills and contacts or something entirely new. You could start a business from scratch, buy an existing one that’s up for sale or consider buying a franchise - see Useful Contacts. It’s essential to be realistic about the market for your products or services and your prospects for success. And do not underestimate the time and energy involved in setting up and running a business.

Getting started You might already have an idea for a business, in which case your next step is to develop this into a viable business plan, thinking through who will buy, what competition you would face, how you could market your products or services, the costs involved, the prices you could charge, what finance you would need, whether you have all the 24

required skills, whether you would need to pay for help in some areas and so on. If you need funding from say a bank, you will need to create a formal business plan including projections of your cash flow and profits during the first few years. Even if you do not need to borrow any money, it is still important to work out a detailed business plan to test the feasibility of your idea and highlight any problems you need to address. You should go through a similar process if you buy an existing business or franchise, but you will have more information to go on from the previous owner or franchise seller. You can get detailed guides to starting a business from your local public library and bookshops. If you are interested in buying a franchise contact the British Franchise Association - see Useful Contacts.

Financing a business Any redundancy pay you receive could

provide the capital you need to set up your own business and tide you over until you start to make some money. Alternatively you may apply for a government backed Start Up Loan of £500 to £25,000 to start and grow your business. Visit www.gov.uk/set-up-business

Registration and tax If you’ll be self-employed, you just start trading, but must register with HM Revenue & Customs. Do this as soon as you can, because you may have to pay interest and penalties if you are late paying tax in connection with your business. The alternative is to set up as a company. You must then comply with more formal arrangements. For more information contact Companies House - see Useful Contacts.

Help and advice See www.gov.uk search for Business Finance and support for guidance on all aspects of setting up and running your own business - see Useful Contacts

Managing Money

Managing Money Losing an income can be daunting, but any redundancy pay with careful money management can help you cope until you get another job. Use the budget calculator at the end of this section to help you check and organise your money. If you prefer, use the Money Advice Service website - see Useful Contacts. The ideas in this section will help you to make the most of your income and to reorganise the household money. Other sections of this toolkit you may find useful are: • Your Home for help meeting rent or mortgage payments. • Entitlements while you are out of work and if your income and savings are low. • Money Worries if you are struggling to meet regular bills and repayments or have debt issues.

Making the most of redundancy pay You may have received a lump sum redundancy payment, While you are deciding the best way to use this pay, deposit the money in an easy access savings account where you can get at it quickly and conveniently. There are various ways you could use the money and the table over the page suggests some points to consider.

Using your redundancy pay Use

Points to consider Use the budget calculator at the end of this section to work out how much youâ&#x20AC;&#x2122;ll need to draw off each week or month and therefore how long the money will last.

Supplement your income until you get a new job Keep money handy in an easy access account.

Consider whether to use your ISA allowance - see later in this section for more details. Replace essential benefits Check whether your employer will include non-cash benefits, such as former company car, as part of that went with your job your redundancy package. Use the budget calculator at the end of this section to work out the weekly or monthly saving on repayments Clear debts if this will Interest charged on debts is nearly always higher than the interest paid on savings. As far as possible, bring spending down to a aim to clear more expensive debts, such as store cards, before cheap ones. more manageable level. Check if there are any early repayment penalties on debts you are thinking of paying off. If debts are a problem see the Money Worries section Use as capital to start your See the Next Steps section. own business Pay for retraining to broaden your skills

Bear in mind this could make you unavailable for paid work and so may affect state benefits you claim. See the Next Steps and Entitlements sections.

Boost your pension savings

You get tax relief on the amount you pay into a pension scheme (up to certain limits - see Saving and investing later in this section. Consider getting advice from an independent financial adviser

Invest in other ways

See Saving and investing later in this section. Consider getting advice from an independent financial adviser

Managing Money

Saving or investing redundancy pay

your

You may find that your redundancy pay is used for meeting bills and paying debts - see Money Worries for advice and help in this situation. If your redundancy money is not immediately used up in these ways, you may want to save or invest it. Deciding on the best home for your money will depend on how long you plan to save, how quickly you want to be able to get at your money and how much risk you are prepared to take.

Short-term and low-risk saving If you will need to draw on the money to help you now or you are setting aside for less than five years, a savings account is likely to be suitable. For example, you might consider: • C ash individual savings accounts (ISAs). Interest is tax free and many give you easy access. You can invest up to £20,000 in cash or Stocks & Shares ISA each tax year (April 2020). Bear in mind - if you invest the full

amount then withdraw it, your ISA allowance for the year will have been used up and you will not be able to replace that money if you are in a position to restart saving later in the same tax year. • Term account. If you are confident you will not need the money for now, you can often get a better rate of interest by agreeing to leave your money untouched for a set period, usually between one and five years. Savings accounts are offered by banks, building societies, National Savings & Investments and Credit Unions. Shop around, see the best buy tables in newspapers and on comparison websites such as www.moneysavingexpert.com

Warning! Make sure you understand an investment before you hand over any money and beware of scams. If a deal sounds too good to be true, be on the alert for hidden charges, hidden risks or even fraud.

Emergencies During a period of unemployment, you are likely to be drawing on any emergency fund you have previously built up. If possible, try to keep some of that fund or some of your redundancy pay available to meet unexpected costs such as fixing your car if it goes wrong. Once you have a new job, make rebuilding your emergency fund a top priority. Many experts recommend you aim to save an amount equal to three months salary.

Longer term investing

Boosting your pension

If you don’t need your redundancy pay for immediate expenses, you might consider investing it. But if you’re not sure how long you’ll be out of work, investing your redundancy pay may not be the best thing to do.

If you are thinking about early retirement as an alternative to redundancy, you might want to put your redundancy pay into your pension scheme at work to boost the pension you are about to draw - discuss this possibility with your human resources department.

Over periods of ten years or more, investments in shares have tended to give higher returns than savings accounts. But share-based investments are more risky because the value of your investment can fall as well as rise. Investment funds, such as unit trusts, pool your money with that of many other investors and let you invest in a broad range of different shares and often other investments too. This helps to spread the risk. If you are new to investing or you have a sizeable sum, consider getting help from an independent financial adviser.

If retirement is still some way off, you might be thinking about investing your redundancy pay in a personal pension scheme to increase your eventual pension.

The way you get tax relief will depend on the type of scheme you pay into. If you pay into a personal pension the scheme provider claims and adds relief at the basic rate (even if you are a nontaxpayer). For example, if the basic rate is 20%, for each £100 you pay, a total of £120 goes into your scheme. You can claim extra relief through your tax return if you are a higher-rate taxpayer.

The amount you pay in, up to a limit, qualifies for tax relief. The limit, which applies to all your pension contributions for the relevant tax year, is set equal to the higher of £3,600 or the amount of taxable UK earnings you have. For example, if you earn £20,000 in total during the tax year, you can get tax relief on up to £20,000 of pension contributions.

State benefits.

Managing Money

Managing on less You may need to budget carefully until you get a new job. Make sure you claim all the insurance and state benefits you are entitled to and think about other ways to give your income a temporary boost. Insurance pay-outs You may have insurance policies which you can claim on because you have been made redundant: • Mortgage payment protection insurance. If you have bought your own home, you may have taken out this type of insurance along with your mortgage. It typically starts to pay your mortgage repayments one month after your earnings stop and continues to pay out for up to 12 months. • Payment protection insurance. You may have taken out this insurance with a personal loan or credit card. It helps you keep up your loan repayments by paying out a set amount for up to 12 or 24 months. Pay- outs usually start one month after your earnings stop. Payment protection insurance is also called credit insurance, loan protection insurance and accident, sickness and unemployment (ASU) insurance.

These types of insurance typically have many exclusions - for example, some do not cover part-time work or temporary contracts - and have sometimes been sold to people for whom they were not suitable. Unfortunately misselling of Payment Protection Insurance was widespread but you can no longer claim against mis-sold PPI as the deadline for claims has passed. If you think you had been sold an unsuitable policy, complain to the firm which made the sale, or if you’re unhappy with how your claim is handled for other reasons, complain to the insurance provider. If that does not produce results, take your case to the Financial Ombudsman Service, a free, independent complaints body - see Useful Contacts.

If you have recently been paying national insurance contributions, you may be able to claim contribution based jobseeker’s allowance (£73.10per week in 2020 or £57.90 if you are under 25.) It is payable for a maximum of 182 days. You will have to attend a Jobcentre on a regular basis to show you are available for work and actively seek work. To claim, contact Jobcentre Plus (or equivalent office in Northern Ireland). If your income is low, you may qualify for other benefits and council tax benefit. When your contribution-based jobseeker’s allowance stops, or if you do not qualify for it, you now have to apply for Universal Credit which replaced several other benefits. UC is based on your needs and whether you, or your partner if you have one, have savings or not. It is paid for as long as you satisfy the conditions of entitlement. If you have been getting tax credits, you must tell the Tax Credits Office that you are no longer working as this may affect your eligibility. But a reduction in your income may mean your payment via Universal credit goes up. Contact the Universal Credits Helpline or search www. moneyadviceservice.org.uk - see Useful Contacts. For more information see the Entitlements section.

Other income

Spending Less

Personal Tax Allowance

To make sure you are getting the best deals on your utility and other bills you could check out the following:

Check with your tax office to see if you are due a tax rebate now that your income is lower. Most people have a personal allowance - an amount of income you can have each tax year before you start to pay tax. When you are working, you usually get an equal fraction of this allowance each pay period - for example, one-twelfth of your allowance each month if you are paid monthly. This means, if your earnings stop partway through the year, you may have some unused allowance for the current year that you can claim now and so receive a tax rebate. However, National Insurance is worked out on a different basis and cannot be reclaimed.

Renting out a spare room If your home is suitable, you might consider taking in a lodger, but be aware that getting rent will be taken into account in working out your entitlement to any means tested state benefits such as Universal Credit and Council Tax Reduction. You will also need permission from your mortgage provider or landlord. You should tell your home insurer too as having a lodger may affect your cover or premium. You can have up to £7,500 a year of rental income tax-free under the rent-aroom relief scheme - see Useful Contacts.

• OfGem website - for advice and tip s on how to save money on your gas and electricity bills. (see Useful Contacts) • Use comparison websites such as Uswitch (see Useful Contacts) to see if you can save on gas and electricity bills as well as Insurance, phone, credit card and other bills. For more money saving ideas, visit the www.moneyadviceservice org.uk

Working whilst claiming benefits. Under the Universal Credit system your allowance is adjusted on a weekly basis depending on the number of hours you have worked and how much you have earned, you can do any type of work such as fulltime, part-time, temporary, casual or flexible hours however the work must be legal and must always be declared.

Managing Money

Organising household money A drop in income may mean you need to rethink the way you meet your household expenses. If you have a partner, this could mean agreeing to change your spending habits and the way you split the bills until you get a new job. There are various ways you could do this, for example:

Changing Roles

Budget calculator

Redundancy may mean spending more time at home and taking on tasks previously done by other members of your family or someone you paid. This could include cooking, cleaning, shopping and looking after children.

• Income pooling. You could combine your incomes, regardless of source, and jointly pay all expenses and bills from the pool.

Taking on these jobs will help your household finances if you used to pay someone else to do them or it may free up your partner to do some paid work. But taking on a different role at home can be difficult - not only for you but also for other members of your family. If you feel frustrated or are unhappy with your changing role, experts recommend talking to someone. This could be a family member or someone neutral outside the situation, such as Relate (see Useful Contacts). Relate offers advice by phone as well as face-to-face and you can discuss matters either on your own or with your partner, whichever you feel comfortable doing.

Complete the calculator opposite for either yourself or your household. Decide whether to work out a weekly or monthly budget. If weekly, divide monthly expenses by 4 (as a rough guide), quarterly bills by 13 and annual bills by 52. If monthly, multiply weekly sums by 4, divide quarterly bills by 3 and yearly bills by 12 to find the monthly equivalents.

• Splitting the bills. You could each keep your own income and split bills between you based on how much you can each afford. • Personal tax allowance. Whichever of you has the larger income could transfer part of their personal tax allowance to the other partner. This would help increase your partners income by a small amount through their salary to help cover any household expenses.

Your income State benefits (Jobseeker’s Allowance, Universal Credit, Housing Benefit, Council Tax Reduction, other) Wages from any jobs or profits from self employment Income from insurance policies Income from savings and investments (which could include redundancy pay) Other income (for example rental income) Other income (for example rental income) TOTAL INCOME A Your spending Housing costs (rent or mortgage, service charge/ground rent, council tax, rates in Northern Ireland, maintenance/repairs) Household bills (electricity, gas, oil/solid fuel, water, phone, broadband, TV) Insurance (buildings, contents, car, life, health, pets) Transport costs (petrol/diesel, road tax, car maintenance and MOT, parking, bus, train, tram, other) Food and general shopping (groceries, cleaning items, toiletries) Alcohol and tobacco Clothing Pets (food, vet bills) Healthcare (medicines, dentist, eyecare, hearing aids) Leisure (eating out, cinema, theatre, trips, holidays, hobbies, healthclub, courses) Loan repayments (other than mortgage) Regular savings Extra costs of job search (newspapers, using internet, phone calls, photocopying, postage, travel to interviews Other (eg. gifts, donations) TOTAL SPENDING B SURPLUS OR SHORTFALL A-B

Managing Money

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Entitlements

State Entitlements

Type of state benefit

You may be eligible for a range of state benefits if you have been made redundant.

There are broadly two types of benefit:

The main benefit you may be able to claim while out of work is Jobseeker’s Allowance. But if your income is low, you may be able to claim a range of other benefits as well, such as Universal Credit, Council Tax Reduction and Housing Benefit.

• Contribution-based (non-meanstested). You get these if you have paid enough national insurance contributions while working (or been credited with contributions, for example while on maternity leave). You are entitled to these benefits regardless of your household savings, but some types of income - such as pension payments or earnings from part-time work may affect the amount you get.

There are also special schemes to help homeowners facing problems meeting their mortgage payments - for details, see the Your Home section. If you have been claiming tax credits, you will need to report the change in your circumstances and the amount you get is likely to change - it may go up or down depending on your circumstances.

National Insurance credits The amount of state retirement pension you eventually get (and also state bereavement benefits) depends on your record of national insurance contributions. Usually you are paying contributions while you are working. In some situations, for example while unemployed, you are credited as if you had paid contributions. You get these credits automatically if you are unemployed and actively seeking work while claiming Universal Credit or Jobseeker’s Allowance.

• Income-based (means-tested). Your eligibility for these depends on your household income and savings being low and not your national insurance contribution record.

You can get further information about all state benefits and how to claim them by visiting the www.gov.uk website - see Useful Contacts.

Getting advice

The UK benefit system is complicated, so this toolkit only offers an outline of what you might be able to claim. For more information and guidance based on your own personal situation, contact Jobcentre Plus or, in Northern Ireland, your local Jobcentre or visit www.jobcentrenearme.com.

Out-of-work benefits If you have been working fulltime between 2 and 3 years or more and have paid all your Class 1 National Insurance contributions for 2 full tax years prior to the year you’re claiming in. New Style Jobseeker’s allowance (JSA) is the main benefit for people like you. To qualify, you must be under state pension age and available for, and actively seeking work. You will not count for as available for work if you are studying full time. If you are on short-time work (see Job Worries) or laid-off, you are treated for a maximum of 13 weeks as if you are available for work.

Contribution-based New Style JSA You will normally be able to claim this if you have been paying national insurance contributions as an employee for the last two complete tax years. (A tax year runs from 6th of April to the 5th of April the following year). Contribution-based JSA is paid for up to 6 months and is not affected by your household savings. JSA is paid at a flat rate of £74.35 a week for over 25year old’s or £58.90 a week if you’re under 25.(April 2020) Your savings including your redundancy pay or any other income - for example interest from savings - does not affect the amount of JSA you get. The earnings of your partner, if you have one, does not affect your contribution based JSA. If your partner is also unemployed, you may be able to make a joint claim for contribution-based JSA. Which is £116.80 a week (April 2020)

Universal Credit This is a means tested benefit, based on your household rather than individual circumstances. This means that your weekly entitlement is affected by your income and savings and that of your partners if applicable. One person makes a claim for the whole household. UC replaces the following benefits, Child Tax Credit, Housing Benefit, Income Support, Income based JSA, Income Related ESA and Working Tax Benefit. You may still claim UC, If your working partner is on a low income. You will not be eligible for UC if you have savings of £16,000 or more between you and your partner. UC is normally paid on a monthly basis direct to your bank. The applicable amount for single claimant aged under 25 is £ 251.77 a month and single claimant over 25 is £317.82. For joint claimants, both under 25 the rate is £395.20 and joint claimants both over 25 the rate is £498.89 a week. (April 2020). 37

Entitlements

Benefits to help with housing costs The following benefits are meanstested and are now part of and integrated into the Universal Credit

Help with rent - Housing Benefit You may get help with all or part of your rent. There is no set amount of housing benefit and what you get will depend on whether you rent privately or from a social housing provider (I.e. formerly known as council house) If you live in privately rented house the housing benefit will be based according to the number of bedrooms you have. You may get less than the full rate depending on your income and savings. You have to make up the difference yourself or negotiate a rent reduction with your landlord. If you rent from a housing association or council, full housing benefit will meet your total rent bill. But you may get less, depending on your income and savings.

Housing benefit only covers the cost of accommodation and any service charges, such as for lifts and communal play areas. So if your rent includes heating, lighting and water bills you will not get housing benefit for these.

Household income, savings, pensions, benefits, number of dependant children living with you, residency status and any other adults living in with you.

Council Tax Reduction (Sometimes called Council Tax Support) Replaced Council Tax Benefit in April 2013

Homeowners on certain means-tested benefits, including Universal Credit may be able to get help with their mortgage interest payments called Support for Mortgage Interest (SMI). However, SMI is not paid for the first 13 weeks of your claim - check whether you have any mortgage payment protection insurance to cover this gap - see Managing Money.

If you are on a low income or claiming benefits your council tax bill could be reduced by up to 100% however if you do not qualify for the full amount, you may still get benefit to meet part of your bill. Claiming Council Tax Reduction. Each Local Council Authority administers its own council tax reduction scheme. You may apply for it via local authority website or request a form from your council. Eligibility depends on your circumstances and several other factors such as:

Help with Mortgage costs

SMI covers only mortgage interest. It will not pay off any mortgage capital or mortgage insurance premiums or any mortgage arrears. You can normally claim for mortgage interest payments on up to ÂŁ200,000 of your mortgage. If you qualify SMI is paid directly to your lender for a maximum of two years. There are other government initiatives to help you pay your mortgage if you lose your job. For more details see Your Home.

Help with other costs If you are claiming Income-based JSA or Income related ESA, you may be eligible for the following

Social Fund This can help you by making loans and grants to cover emergency expenses and large one-off payments. However, some of this help comes from a cashlimited fund, which means that even if you have a valid claim, there will not necessarily be any money available. Visit www.turn2us.org.uk

Social Fund help can include: • Maternity grant. You can get £ 500 to help with the cost of clothes and equipment needed for a new baby. This is restricted to your first child. • Cold weather payments. These aim to help you meet extra fuel costs during spells of very cold weather. If the temperature in the area where you live falls to 0 degrees centigrade or lower for seven consecutive days Between 1st Nov and 31st March you

will automatically be sent £25 for this period. ( April 2020) • Funeral costs. If you are responsible for paying for a funeral you may get money to pay for necessary costs such as burial or cremation, documentation, transportation of the coffin, travel and other expenses. • Budgeting loan. This is an interestfree loan of a lump sum to pay for essentials such as furniture and household equipment, clothing and footwear. You must have been receiving a means-tested benefit, such as income-based JSA for at least six months to qualify. Visit www.gov. uk/ Budgeting Loans Free school meals, school clothing grants and bus passes If you are on a low income and receiving certain benefits you may be able to get help with the cost of school meals, school uniforms and travel to school for your children.

Healthy Start free vitamins and vouchers for milk, fruit and vegetables Expectant mothers and families with children under four are entitled to free vitamins and vouchers for milk, fruit and vegetables if they are on certain benefits. Your midwife or doctor can tell you more about this. Help with NHS Prescription Fees and other Medical costs if you are on a low income and receiving certain benefits you may be entitled to free prescriptions, dental treatment, eye tests and vouchers for glasses. You may request a HC1 form online or download it from the NHS website at www.nhs.uk - Search NHS Low Income Scheme (LIS) Prescriptions are free in Scotland, Wales and Northern Ireland.

Contact your local education authority to find out more. 39

Entitlements

What happens at Jobcentre Plus As soon as you stop work you should contact Jobcentre Plus online or by phone or the JobcentreOnline in Northern Ireland. This is the government agency which handles your benefit claims and supports you back into work. You can only apply for Universal Credit online, or by phone in special circumstances. For JSA you can apply online or by telephone. You will be asked to provide information including: • Your national insurance number • Your rent or mortgage details • Your past employer • Any income and savings you have The person you speak to will tell you what will happen next with your claim.

If you are claiming JSA, you will need to attend an interview at the Jobcentre. This is called a “new jobseeker interview”. A personal adviser will help you draw up a “jobseeker’s agreement”. This sets out the steps you agree to take to find work.

You will have to confirm your benefits claim in person every week or two weeks, and your situation will be reviewed at regular interviews. You will have a longer review if you have been getting benefit for 13 weeks. As well as providing help and advice on claiming any benefits you may be entitled to, your work coach or personal advisor can offer you support to find a new job and tell you about various training opportunities.

State help finding and starting a job Your local Jobcentre Plus will give you help and advice on getting back to work. This includes: • Job vacancies. Jobcentre Plus has the UK’s largest database of job vacancies. • Offer Help and advice on writing a CV, applying for jobs, filling application forms and preparing for interviews. Your Jobcentre Plus (or Jobs and Benefits Office in Northern Ireland) work coach/ personal adviser can also talk to you about

the extra help that may be available to you if you need help to improve your basic skills such as English, Maths and IT Skills, as well as looking at what you are doing to find work and whether Jobcentre Plus is giving you all the help you need, your adviser will be able to tell you about the extra help that is available. This can include: • help to set up your own business or become self-employed. • Training that is available if you need to improve your skills or develop new ones to increase your chances of getting a job. • Voluntary work you could do to help improve your skills and experience so that you have a better chance of finding a job. Jobcentre Plus may also be able to arrange a work trail for you where you get to try out a job to see if you’re the right person for the vacancy. Work trial can last for up to 30 working days and your benefits continue throughout this period. If the trail doesn’t work out and you are not offered the job, this won’t affect your benefits.

Your Home

Your Home One of the biggest concerns if you lose your job is how to keep up any rent or mortgage payments. Take stock, keep calm and get expert advice and help. If you lose your job you may be worried about losing your home as well. Paying your rent or mortgage (or any other loan secured on your home) has to be treated as a top priority and it is important to take action and get advice quickly.

If you are having problems paying your rent or mortgage, donâ&#x20AC;&#x2122;t suffer in silence - help is available. There are several organisations which offer housing advice and which can help you claim any state benefits you are entitled to. You also have housing rights which ensure you cannot be turned out of your home without warning. This section looks at these issues and the sources of help available.

Housing rights Your housing rights will depend on a range of factors such as whether you rent or have bought your home or if your home comes with your job. If you are a tenant, then your rights will depend on the type of tenancy agreement you have and who you rent your home from. This is a complex area. Get advice from Shelter or an equivalent organisation - see Useful Contacts.

Problems paying a mortgage If you are a homeowner and having difficulty paying your mortgage, there are a number of things you can do. First, check if you have any insurance policies, such as mortgage payment protection insurance (MPPI) that you can claim on to help with your mortgage repayments (see Managing Money for more details). Also check if you are entitled to any state benefits to help with your mortgage interest repayments (see Entitlements). If you think you will not be able to carry on meeting your mortgage payments, contact your lender straight away. Lenders must explore ways of helping you, so that losing your home is the last resort. Your lender should discuss with you ways to make your repayments more affordable. These could include: â&#x20AC;˘ Reducing your monthly repayments by lengthening the term of your mortgage or switching from a repayment mortgage to an interest-only loan.

• Taking a payment holiday or agreeing a temporary reduction in your payments until you are back on a firm financial footing • Renting out your property for now while you move somewhere cheaper. • Adding any mortgage arrears to your outstanding mortgage which spreads the debt over the rest of the term but will increase your monthly repayments. • Giving you time to sell your home yourself, as you are likely to get a better price than if your lender repossess your home and sells it. There are also various governmentsponsored schemes to help homeowners who are having difficulty paying their mortgages - see table over the page. The schemes are available throughout England, Northern Ireland, Scotland and Wales, although in some cases details vary from one country to another and from one lender to another.

Do not confuse government mortgage rescue schemes with “sale-and-rentback” schemes offered by commercial firms. With these, you sell your home at a discount to a firm and remain living there as a tenant. If you deal with a firm regulated by the Financial Services Authority (FSA) they must meet certain standards, for example if you sell your home you must receive a fixed term tenancy agreement of at least five years.

• the firm is regulated by the FSA • you understand the cost and risks involved • you have considered all other options such as government-backed scheme (see over page). If you approach a regulated firm, they should give you more information on Sale-and-rent-back schemes or visit www.moneyadviceservice.org.uk or www.theadvisory.co.uk.

However, there are still drawbacks, for example: • you may have to pay a full commercial rent • your rent could go up both during and after the fixed term of your tenancy • you could find the landlord does not renew the agreement or you cannot afford any rent rise. Before entering into one of these commercial schemes check: 43

Your Home

Help for homeowners Scheme Support for Mortgage Interest (SMI)

Homeowners Mortgage Support

SCOTLAND The Mortgage to Shared Equity Scheme The Mortgage to Rent Scheme

How it works If your income and savings are low, you may qualify for this state benefit which can help to cover part or all of your interest payments. You claim through Jobcentre Plus or, in Northern Ireland, Jobs and Benefits Office. See Entitlements for more details. Under this scheme, if you are struggling to pay your mortgage, you may be able to defer paying part of the interest on your loan for up to two years. Any interest you do not pay during this deferral period is added to your outstanding mortgage and will need to be repaid eventually. For more details contact your lender. This scheme is no longer available in England however it is still available in Scotland. If you are in danger of becoming homeless, under the Mortgage to Shared Equity Scheme you may be able to sell up to 30% of your home to the Scottish government to keep hold of your property. The Mortgage to Rent Scheme allows a social landlord â&#x20AC;&#x201C; like a housing association or local council â&#x20AC;&#x201C; to buy your home but you can continue to live there as a tenant. For details visit mygov.scot Search Home Owners Support. Under the Mortgage to Rent Scheme or a housing association, and instead pay a subsidised rent. For details visit mygov.scot Search Home Owners Support Fund.

Problems paying rent If you are having problems paying your rent, check whether you might qualify for any state benefits such as Universal Credit which includes housing benefit to help directly with your rent payments, or other benefits, such as council tax benefit which could help ease the strain on your budget - see Entitlements and Money Worries. If you have fallen behind with your rent because your Universal credit which includes the housing benefit claim has been delayed, contact your housing association office to let them know and keep a note of anyone you speak to there. If your housing benefit will not be enough to cover your rent arrears you will have to find the extra money from elsewhere, unless you can negotiate a reduction with your landlord.

owing in instalments each week on top of your normal rent. If you are a housing association tenant, they will have a policy about how it collects rent arrears. If your private landlord wants to evict you because you are behind with your rent, don’t panic. You cannot simply be thrown out on the street. Your landlord will have to follow set procedures if they want to evict you, and while this is happening, you have breathing space within which to get advice and help with finding a new home. If you do fall behind with your rent or receive a written notice from your landlord, you should immediately contact a housing adviser either through a Shelter advice centre, Citizens Advice. The faster you respond, the more chance there is of keeping your home.

Tied accommodation Tied accommodation is a home provided by your employer in connection with your job. Therefore the risk of losing your home is directly linked to the loss of your job. Your rights in this situation depend on whether you are a “service occupier” or a “service tenant”.

Service occupiers This is where you are required to live in the accommodation provided by your employer as part of your job. This can include live-in nannies, hotel and pub workers who live on the premises, caretakers, boarding- school teachers who supervise children at night and nursing home workers. You usually have to leave your home when your job ends. The amount of notice you are entitled to should be set out in your employment contract and is usually at least four weeks.

As soon as you find you have difficulty paying your rent, contact your landlord and explain what is going on. You may be able to come to some arrangement with them to pay back any money 45

Your Home

Service tenants

Special types of employment

In this case, accommodation is provided by your employer but merely because it is convenient for the job that you live there. As a service tenant you have the same rights as tenants in non-tied accommodation.

Different rules apply to members of the Armed Forces (see Useful Contacts under Housing Advice) and agricultural workers, many farm workers living in tied accommodation have extra housing rights. These rights will depend on the type of tenancy agreement they have. This is a complicated legal area and agricultural workers may want to contact their local Citizens Advice Bureau or Housing Advice for guidance. Shelter has some useful information on their website under Accommodation that comes with your job.

Your housing rights will depend on who you work for (for example, a private or public sector organisation), the type of accommodation provided, the type of tenancy agreement you have and how long you have lived in your home. If you are made redundant, you may be entitled to stay in your accommodation or to be re-housed. But if your employer wants to evict you, then they must follow set procedures and must give you the correct amount of notice, usually two months.

If you have any worries about losing your home call the Shelter Helpline on 0808 800 4444. You can check that your landlord is acting lawfully using the Shelter eviction checker at www.shelter. org.uk

Moving home

Tips if you are relocating

If you get work in another area you may decide to move home. Relocating can be a big upheaval especially if you have to sell your home and buy another.

Moving costs. Apart from the cost of a new home, work out how much extra you will need for other expenses such as solicitors fees, surveys, stamp duty, cost of removal frim and so on.

In a housing downturn, there is no guarantee that you can sell your current home at a price that will enable you to buy elsewhere, so you may need to consider other options. For example, you could think about renting out your property until the market picks up. The rental income you receive may help you to rent a home near your new job. If you have a partner who also works or you are tied to a particular area, for example, through caring for elderly parents, you may need to look at the viability of temporary accommodation while working away - for example, lodging with friends or relatives - while keeping your current home. If you think these arrangements are likely to put a strain on your family life, you may want to talk through all the options with your partner, if you have one, before coming to any decision.

Selling costs. Unless you can sell your home privately, you will need to pay an estate agent. Consider getting a few quotes. Home Information Packs (in England and Wales) have been abolished since 21 May 2010, but you will still need a Home Report in Scotland, which the estate agent can arrange. Sellers in England have to provide a EPC Energy performance certificate. Relocation expenses. Check if your new employer offers a relocation package. This might include help with the costs of moving and finding a new home either rented or owned. Tax laws allow maximum tax-free help of ÂŁ8,000. Your budget. Work out how much money you can afford to spend on a new home. Unless you have enough cash to buy outright, you will need a mortgage. See the Mortgages and Homes section at www.moneyadvice service.org.uk for information on types of mortgage, how much you might be able to borrow and how much your repayments might be.

Your Home

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Money Worries

Money worries One of the biggest headaches of redundancy is how to keep up with regular bills and loan repayments. If you are struggling, don’t despair. There are straightforward steps you can take and free independent advice is also available. Bills, borrowing and credit are part of everyday life, whether a mortgage to buy a home, council tax instalments, a car loan, paying quarterly for fuel or phone, or shopping with a credit card. Such payments are standard items of spending when you have money coming in, but can become a problem if you lose your job. There are a variety of strategies that might help, for example, claiming on insurance, reviewing your budget and switching to different fuel and phone tariffs or providers. If you are still struggling, there are standard procedures for tackling problem debts and free independent advice organisations that can help. Visit www.moneyadviceservice.org.uk

Keeping up repayments Despite a fall in income, you may find you have enough resources to keep up with bills and credit repayments.

you have to wait 30, 60 or 90 days after being made redundant before the policy starts to pay out. Your repayments will be paid for a maximum period, typically 12 months.

Loan insurance policies

Redundancy pay

• Payment protection insurance (PPI). This is also called credit insurance, loan protection insurance and accident, sickness and unemployment (ASU) cover. You may have taken this type of insurance for loans, credit cards or store cards. It should pay some or all of your loan repayments when you have been made redundant. Typically, policies start to pay out after a set amount of time, usually one month after your income stops and continue to pay out for up to 12 or 24 months. • Mortgage payment protection insurance (MPPI). This is PPI that covers your mortgage repayments while you are out of work. Some policies include extra to cover other household bills, such as buildings insurance. Typically

If you have received a lump sum as a result of being made redundant, be wary of splashing out. Putting the money in an easy access savings account and drawing on it gradually can help you keep up with bills until you get another job. However, consider using some of your redundancy pay to clear your credit cards or pay off other loans. This will reduce the repayments and ease the pressure on your budget. However be aware that paying off debts could affect a claim for means- tested state benefits if you did not have to repay the debts and did so at least in part to increase your benefits. Paying off priority debts (see later in this section) is very unlikely to affect your benefits. This is a complex area - get advice from a benefits or debt adviser.

Savings

Special tariffs for bills

Working out a budget

If you have built up savings in the past as an emergency fund, now may be the time to draw on them. As with any redundancy pay, you might use up your savings to help you meet regular bills. Alternatively, consider paying off outstanding credit and loans. Since savings usually earn less interest than is charged on loans, this will usually improve your budget. But try to leave yourself with some savings to cover other emergencies.

All energy suppliers must offer “social tariffs” for vulnerable customers.

Drawing up a budget will help you to take stock of where your income is coming from and how you spend it. This may help you spot areas where you could cut your spending temporarily. For help working out your budget see Managing Money. If you prefer to use an online tool, use the budget planner tool. visit www.moneyadviceservice.org.uk (see Useful Contacts)

State entitlements While working, most employees are building up a right to claim contributionbased jobseeker’s allowance if they become unemployed. You qualify on the basis of your national insurance record, regardless of your income or savings. A fall in income may mean you qualify for a higher amount of tax credit. If your income and savings are low, you may qualify for other benefits such Council tax reduction.

Switching to a social tariff means you pay for fuel at the lowest available price. The definition of vulnerable customer varies from one company to another. Your income must be low, but you may need to meet other conditions too, such as having children or an elderly or disabled person as part of your household. For more information visit www.ofgem.gov. uk see Useful Contacts or contact your fuel supplier. If you are a BT customer on a low income, you may be able to reduce your phone bills by switching to a low- cost service, BT Basic. To be eligible, you must be claiming means-tested state benefits (other than tax credits). Contact BT for details see Useful Contacts.

See Entitlements for more information. 51

Money Worries

Debts - your rights Although you have a responsibility to repay money you borrow, you also have rights.

Unlicensed lenders It is illegal to lend in the UK without having a Financial Conduct Authority (FCA) authorisation. You can check online whether a lender is licensed - see Useful Contacts under Lenders.

Unlicensed lenders - loan sharks - often make contact as “friends of friends” so you may not realise you are dealing with an illegal lender. As well as charging very high rates of interest, if you cannot keep up the repayments, such lenders tend to add exorbitant charges and use bullying tactics to make you pay. But the loan is illegal. You are a victim of crime and do not have to pay. To report or for help and support if you have been targeted by an illegal lender, contact the Stop Loan Sharks on 0300 555 2222 or visit stoploansharks. gov.uk (see Useful Contacts).

Licensed lenders If you miss any repayments, licensed lenders should abide by the debt collection guidelines. Lenders and their agents should not, for example: • Use misleading or unclear communications - for example, letters steeped in legal jargon. • Misrepresent their position - for example, falsely implying that a court has ordered action. • Use harassment - for example, contacting you at unreasonable intervals, or using threats. For a copy of the Guidance and to report lenders who breach it, contact the Competition and Markets Authority at www.gov.uk

Debt consolidation Debt consolidation schemes are heavily advertised on TV and in newspapers. They offer you a single new loan to pay off all your existing credit cards and other debts. The interest rate may seem relatively low but this is because the new loan is secured against your home. While consolidation loans may seem convenient, if you can’t keep up the payments, you could lose your home. For that reason be very wary of using these schemes.

Dealing with problem debts Debt problems generally get worse if you ignore them. So the sooner you tackle them the better. If you are not sure where to start, get advice. The informal debt payment plan below sets out steps you can follow if you are sorting out your debts yourself. An adviser will also take this approach if at all possible. For more detail, you can get a free, printed guide and template letters to send to creditors (the people to whom you owe money) from National Debtline visit www.nationaldebtline.org (see Useful Contacts under debt advice)

Informal debt payment plan Step 1. Work out a budget to see how much money you have left after paying for essentials. This is the amount you can put towards paying off your debts. Step 2. Divide what you owe into priority debts and other debts. Negotiate with the organisations with which you have priority debts to pay what you can afford. Step 3. Divide any money left between your other debts, based on how much you owe each creditor. Offer each creditor the relevant sum. Step 4. Write to your creditors stating how much you are offering them, include a copy of your budget and ask them to stop making interest and late payment charges. While you are waiting to hear from them, start paying what you have offered. Many creditors will accept your offer and you can increase your payments when your circumstances improve. However, a creditor can refuse or might start court action later. In either case, get advice.

Money Worries

Priority and non-priority debts Priority debts

Non-priority debts

These are a priority because the consequences of not paying them are severe - for example, you could lose your home, have services cut off or essential goods repossessed. With some debts you owe to the government, you could in extreme cases be sent to prison, but this would be the very last resort.

If you do not pay these, you could be taken to court and this could lead to bailiffs being sent to your home to take away your belongings

Examples

• Rent, mortgage or other loan secured on your home

• Credit debts, such as overdrafts, loans, hire purchase on non-essentials, credit cards and catalogue debts.

• Fuel bills • Essential items bought on hire purchase such as a car you need for work • Council tax arrears • Court fines and maintenance payments • TV licence • Tax Debts

• Student loans. (Repayments should stop if your income falls below £26,575 a year from April 2020) • Money borrowed from friends and family

Other debt remedies If your debts are large or complicated an informal debt payment plan may not be suitable. Other, more formal remedies may be needed and in that case you should contact one of the advice agencies listed over the page. All the remedies listed below will appear for six years on the files kept about you by credit reference agencies and could affect your ability to get credit in future.

Possible remedy

Main Features

England, Wales and Northern Ireland Your debts total less than £5,000 and at least Administra- one creditor has taken you to court. You make a single monthly payment to the court which tion order distributes this between your creditors. Your debts are written off after 12 months. To apply you must have less than £50 a month Debt relief spare income, debts under £20,000, assets worth order (DRO) less than £1000 and your car, if any, must be worth less than £1,000. The fee for a DRO is £90

Individual voluntary arrangement

A legal agreement between you and your creditors to pay off an agreed amount of your debts. The agreement is usually for five years and after that there is no more to pay. Because of the costs involved this is only worth considering if you have debts of more than £10,000.

Scotland Debt arrangement Scheme

Like a debt payment plan, except you make the plan through an approved money adviser and your creditors must stop any recovery action against you and freeze interest payments. You make a single monthly payment to an approved distributor who deals with your creditors.

Trust deed

Your assets, including your home, are transferred to a trustee whose job is to pay off as much as possible of what you owe. Usually any remaining debts are written off after three years. The advantage over bankruptcy is that your job is not usually affected.

Throughout the UK Bankruptcy lasts one year after which all your debts are written off. Your home, if you own Bankruptcy one, is likely to be sold. Your job may also be (sequestra- affected: the police force, armed forces, local council and government offices, accountancy tion) firms and solicitors may refuse to employ you while you are bankrupt. 55

Money Worries 56

Where to get advice You can get free independent advice and help if your debts become a problem from: Citizens Advice, National Debtline, Money Advice Service, Step Change, Pay Plan Visit www.citizenadvice.org.uk, www.nationaldebtline. org, www.money advice service.org. www.stepchange. org www.payplan.com or your local Credit Union - see Useful Contacts under Debt advice. These organisations can look at your situation, suggest appropriate action and if necessary, help you deal with your creditors. Debt management companies offer a similar service but for a fee. Their advice is usually free but you pay for them to negotiate and deal with your creditors. You make one payment a month to the company which deducts a fee (usually 15%), dividing up the remainder to pass on to each creditor. Think carefully about using a debt management company. It is unlikely to do more for you than the free organisations listed above and will cost you money that could be better spent reducing your debts.

Early Retirement

Early Retirement 58

Early Retirement Employers may offer an early retirement package to avoid compulsory redundancies. If you are tempted by this, you should think carefully about how you will manage financially if you give up work and what you will do in the future.

The earlier you draw a personal pension, the lower it will be.

Early retirement packages are likely to include incentives, such as:

State Pension

â&#x20AC;˘ If you are in a defined contribution scheme, a lump-sum payment into your pension fund to boost the value of your fund.

Early retirement basics

The state pension age for men and women has been changing in recent years, recent increases have been in stages and currently state pension retirement for both men and women is between 66, 67 and 68 . In the future the government is again likely to increase the retirement age for both men and women.

Personal or Private Pension

Early retirement packages

The earliest age at which you can start drawing on occupational or personal pensions is 55. However, most occupational pension schemes have a higher normal pension age of 65. Usually your occupational pension will be lower if you start to draw it early, but may be enhanced in redundancy situations.

Taking early retirement is very different from being made redundant: you may have no redundancy rights and do not receive any redundancy pay. If you decide to retire early, you are likely to receive a smaller pension than if you had worked until your normal retirement age. Just how much your pension will be affected will depend on the terms of your early retirement package and the type of pension scheme you are in.

This section looks at the facts about retiring early, early retirement incentives offered by employers and your pension options.

â&#x20AC;˘ If you are in a defined benefit scheme your employer may offer you a pension which includes benefits worked out as if you had worked up until normal pension age. Both of these incentives would result in you getting a better pension than you would otherwise be entitled to if you took early retirement without the package.

Different types of pension scheme

Work-based defined contribution schemes

There are two different types of work-based pension schemes:

A defined contribution scheme that you belong to through work may be an occupational pension scheme which is a benefit that comes with your job.

Defined contribution scheme (also called a money purchase scheme). You build up your own pot of savings - your pension fund. The size of your fund depends on how much is paid in, how (and whether) the invested contributions grow and charges. At retirement you can shop around to buy the best pension with your fund. All personal pension schemes work on a defined contribution basis. Defined benefit scheme (also called a final salary scheme). Your pension is usually based on your salary and the length of time you have been in the scheme. For example, your scheme may pay one-sixtieth of your pre-retirement pay for each year: if you have earned £30,000 and had been in the scheme for 20 years, you would get 1/60 x £30,000 x 20 = £10,000 a year pension. Other defined benefit schemes work out your pension in different ways. If you are not sure how your scheme works contact your GMB Rep or pension scheme administrator.

Alternatively, it may be a group personal pension scheme or stakeholder pension - although your employer has set up this pension arrangement, the scheme is personal to you and stays with you even when your job ends. In either case, early retirement will normally result in you receiving a smaller pension because: • You will have had fewer years to pay into your pension scheme so your pension fund will be smaller • Your pension fund will have had less time to grow • The yearly pension you can buy with your fund is lower the younger you are at the time of purchase. However, just how much your pension will be affected will depend on the terms of any retirement package that your employer offers.

Early Retirement

Work-based schemes

final

salary

Bridging pensions

• The pension formula is based on fewer years in the scheme than if you had worked on until normal pension age.

If you take early retirement you may have to wait some years before you receive your state pension. To help employees retire early, some companies offer a bridging pension as part of the early retirement package. This is an additional pension which you receive from the time you retire until your state pension kicks in.

• The pension formula may be adjusted (called an “actuarial reduction”) to reflect the extra cost of paying your pension for longer and based on fewer contributions.

Once you reach state pension age, your employer stops paying the bridging pension but your income should remain steady as you will then receive state pension instead.

• Typically, the pension might be decreased by 3 to 6% for each year you retire early. But in some schemes, there is no reduction for say, the last five years before normal pension age.

Your pension options

If you are in an occupational final salary scheme, retiring early is likely to result in you getting a smaller pension because:

In a redundancy situation, your employer might waive any actuarial reduction and possibly work out your pension as if you had worked until normal pension age.

If you take early retirement, you need to decide what you want to do with your pension fund. Usually you can take up to a quarter of the fund as a tax-free lump sum. The remainder of the fund must be taken as pension income, which is taxable.

Taking a lump sum reduces the pension you get. In a money purchase scheme, the trade-off is neutral - so taking the maximum lump sum would reduce your pension by a quarter. But, in most final salary schemes, you would get a worse deal and would have to give up more than a quarter of your pension, so think carefully before you decide what to do. Occupational pension schemes often offer you a pension paid direct from the scheme. You do not have to accept this, but can shop around for a better pension from elsewhere (called using your “open market option”). In general, it is hard to beat a final salary pension, so you will normally be better off accepting what the scheme offers. If you are in a money purchase scheme, you have a choice of ways to provide your pension income and you may do better shopping around than accepting the scheme pension.

If you are interested in taking up an early retirement package, ask your employer or GMB rep for an illustration of the pension you would get. 60

Your main choices are:

Lifetime annuity

Buy a lifetime annuity.

There is more than one type of annuity to choose from. The type which is best for you will depend on your circumstances. If you have access to the internet, you can use the Pensions Advisory Service’s online annuity planner to help you choose a suitable type of annuity.

This is an investment where you exchange your pension fund for a pension payable for life, regardless of how long you live. Most people choose this option. Your employer’s scheme usually offers you this type of pension or you can buy an annuity from another provider - annuities are sold by insurance companies. Choose income withdrawal. This is where you leave your pension fund invested and draw an income direct from the fund. Employer’s schemes do not usually offer this option, but check with your scheme. If it doesn’t, you would need to transfer to a personal pension scheme that does allow this option. Income withdrawal is suitable only if you have a large pension fund and are comfortable with a pension which may go up and down. It is a complex choice - get advice from an independent financial / pensions adviser.

Annuity rates are based on the size of your pension fund and the annuity rate offered by the annuity provider. Annuity rates are based on factors such as general life expectancy, interest rates, your age, sex and sometimes your health. In general, the older you are the higher the annuity rate you are likely to get because your life expectancy is less. But annuity rates do fluctuate (and have tended to fall over the last 15 years due to longer life expectancy and very low interest rates) so there is no guarantee that putting off the start of your pension to a later age will result in a higher pension.

Enhanced and impaired life annuities Some companies offer annuities that pay a higher than normal income if your life expectancy is lower than usual. You might qualify for an enhanced annuity if you smoke or you are overweight. You might get an impaired life annuity if you have a health problem that threatens to reduce your lifespan. If you think you might qualify for a higher than normal income, shop around to find a provider specialising in this type of annuity.

Shop around The pension deal you find now will affect the income you get for the rest of your life. You are strongly recommended to check what other providers offer - Visit www.moneyadiveservice.org.uk – compare lifetime - see Useful Contacts.

annuities

Early Retirement

Pensions and work Normally, you can start an occupational pension early and it is not affected if you carry on or return to work. The exception is where your pension starts early or is enhanced on the grounds of ill health - in that case, the pension may stop if you find later you are well enough to resume work.

Phased retirement Many people like to wind down to retirement before giving up work altogether. There is nothing to stop you taking your employer’s early retirement deal and then looking for another job, perhaps a part-time post. If you transfer your pension fund out of your employer’s scheme and into a personal pension scheme, instead of using all your pension fund to buy an annuity, you can use just part of it to buy an annuity now and leave the rest of the fund to carry on building up. You can later use another portion of your fund to buy another annuity. This is known as phased retirement.

Each time you use part of your fund to buy an annuity, you can also take up to a quarter of that part as tax-free cash. For example, if you bought an annuity once a year, you could use the annuity plus the tax-free cash to provide your income. Bear in mind that the minimum purchase for an annuity is often £10,000.

Returning to work There is nothing to stop you from retiring and drawing your pension and then returning to work. But you should consider your tax position, particularly if you receive a good pension and are thinking of taking on a full time job. You could find this extra income tips you into a higher-rate tax band.

Tax and benefits If you decide to return to work after receiving your pension, any incomerelated benefits you receive such as pension credit are likely to be affected. Your local Jobcentre Plus, jobcentreonline.com in Northern Ireland) or a benefits adviser can tell you how any extra income from working may affect your entitlements. Similarly, adding earnings to your pension and other income will normally increase your tax bill and could take you into a higher tax band.

Useful Contacts

Useful Numbers

Useful Contacts This section contains contact details for organisations and websites that can tell you more about the topics covered in this toolkit, have useful aids to help you assess your situation and/ or provide help and advice. The GMB Reach Out team are also available to offer further advice and guidance either directly or through your on site ULR - contact the team to find out what support we can offer. GMB Reach Out - Tel: 0161 877 9439 or 01254 238443 e-mail info@gmbreachout.org.uk www.gmbreachout.org.uk

A Accountants • Association of Chartered Certified Accountants Tel: 0141 582 2000 www.accaglobal.com • Institute of Chartered Accountants in England in England and Wales Tel: 0207 920 8100 www.icaew.com • Institute of Chartered Accountants in Ireland Dublin Tel: +353 1 637 7200 Belfast +4428 9043 5840 www.charteredaccountants.ie • Institute of Chartered Accountants of Scotland Tel: 0131 347 0100 www.icas.com

Annuities • The Pensions Advisory Service www.pensionsadvisoryservice.org.uk • Money Advice Service www.moneyadviceservice.org.uk 64

Apprenticeship Schemes • England www.apprenticeships.gov.uk • Wales www.gov.wales.gov • Scotland www.apprenticeships.scot • Northern Ireland www.nidirect.gov.uk

B Benefits Advice • Age UK Tel: 0800 6781602 www.ageuk.org.uk • Citizens Advice www.citizensadvice.org.uk (England and Wales) www.communitini.org (Northern Ireland) • Citizens Advice Scotland www.cas.org.uk Tel: 0800 085 7145

• Community Legal Advice (England and Wales) Tel: 0845 345 4345 www.ukecc-services.net/ Communitylegaladvice.cfm • Money Advice Scotland Tel: 0141 572 0237 www.moneyadvicescotland.org.uk • Advice NI (Northern Ireland) Tel: 0289 064 5919 www.adviceni.net • www.gov.uk/browse/benefits

Budgeting Tool (online) • www.moneyadviceservice.org.uk

Benefits Calculator • benefits-calculator.www.turn2us

Broadband www.broadband.co.uk www.uswitch.com Also see Comparison Websites

C Careers, retraining and learning

Comparison websites some examples • www.uswitch.com

• GMB Reach Out Tel: 0161 8779439 www.gmbreachout.org.uk

• www.moneyfacts.co.uk

• National Careers Service (UK) Tel: 0800 100 900 www.nationalcareers.service.gov.uk

• European Consumer Centre for Services www.ukecc-services.net

• Careers Wales Tel: 0800 0284844 www.careerswales.gov.wales

• www.cheapestoil.co.uk

• Skills Development Scotland Tel: 0800 917 8000 www.skillsdevelopmentscotland.co.uk

• www.comparethemarket.com

• My World Of Work Scotland Tel: 0800 917 8000 www.myworldofwork.co.uk • The Open University Tel: 0845 300 6090 www.open.ac.uk

• www.moneysupermarket.com

• www.moneysavingexpert.com

Credit Unions • Ace Credit Union Services Tel 0191 224 4061 www.acecus.org.uk • Association of British Credit Unions (ABCUL) Tel: 0161 832 3694 www.abcul • UK Credit Unions www.creditunions.co.uk www.findyourcreditunion.co.uk 65

Useful Numbers

• www.ukecc-services.net

Debt Advice - free and independent

• www.gov.uk/civil-legal-advice

• Citizens Advice England www.citizensadvice.org.uk • Citizens Advice Wales www.citizensadvice.org.uk/wales • Citizens Advice Scotland www. citizensadvice.org.uk/scotland • Citizen Advice Northern Ireland www.communityni.org • National Debtline Tel: 0800 808 4000 www.nationaldebtline.org • Step Change Debt Charity Tel: 0800 138 1111 www.stepchange.org • PayPlan Tel: 0800 280 2816 www.payplan.com • Free Legal Advice (England and Wales) Tel: 01268 886694

• Communitylegaladvice.cfm • Money Advice Scotland Tel: 0141 572 0237 www.moneyadvicescotland.org.uk

Lookaftermybills.com cheapestoil.co.uk (Northern Ireland) energychoices.net

Financial Ombudsman Service • Tel: 0300 123 9 123 or 0800 023 4567 • www.financial-ombudsman.org.uk

• Advice NI (Northern Ireland) Tel: 0289 064 5919 www.adviceni.net

Financial Conduct Authority (FCA)

• www.fca.org.uk

Employment Law • Advisory, Conciliation and Arbitration Service (ACAS) www.acas.org.uk/advice Tel: 0300 123 1100 • Labour Relations Agency (Northern Ireland) www.lra.org.uk

Energy Advice • www.ofgem.gov.uk

Energy Comparison Sites • Uswitch.co.uk comparethemarket.com

G Government websites • www.gov.uk www.gov.scot www.gov.wales www.nidirect.gov.uk

GMB • www.gmb.org.uk www.gmbnorthwest.co.uk www.gmbreachout.org.uk

H • Healthy Start Tel: 0345 607 6823 www.healthystart.nhs.uk

Housing advice • Shelter (England and Scotland) Tel: 0808 800 4444 www.england.shelter.org.uk • Shelter Cymru (Wales) Tel: 0800 0495 495 www.sheltercymru.org.uk • Housing Advice NI (Northern Ireland) Tel: 0289 0245 640 www.housingadviceni.org

Housing advice for members of the Armed Forces • Government Services Housing Advice Civilian: 01225 810 358 Military: (9)4382 45 21 www.gov.uk/guidance/housing-forservice-personnel-and-families • The Armed Forces Charity (SSAFA) Tel: 0800 731 4880 www.ssafa.org.uk

• Army Families Federation (AFF) Tel: 01264 382324 www.aff.org.uk

Housing benefit and Council tax benefit Your local authority. See letters you have had from the paying authority or phone book. To find your local council • www.gov.uk/find-local-council

I • Illegal Lending Teams Hotline - 0300 555 2222 www.stoploansharks.co.uk

Independent Financial Adviser -finding one • www.unbiased.co.uk • The Institute of Financial Planning www. financialplanning.org.uk/ wayfinder • www.gov.uk/find-a-legal-adviser

Insolvency Service • www.gov.uk/government/ organisations/insolvency-service

J Jobcentre Plus • England, Scotland & Wales www.gov.uk/contact-jobcentre-plus • Northern Ireland www.nidirect.gov.uk www.jobcentreonline.com www.communities-ni.gov.uk

Jobs - Help finding a job • www.gov.uk/find-a-job

Job vacancies • Jobcentre Plus Tel: 0845 6060 234 www.jobcentreplus.gov.uk

Online recruitment agencies • www.indeed.co.uk www.reed.co.uk www.cv-library.co.uk www.monster.co.uk www.totaljobs.com www.jobsite.co.uk 67

Useful Numbers 68

L Lenders • Financial Conduct Authority (FCA) • Competition and Markets Authority (CMA) www.gov.uk/government/ organisations/ competition-andmarkets-authority

M Money

Pensions - how they work and your rights • The Pensions Advisory Service Tel: 0800 011 3797 • www.pensionsadvisoryservice.org.uk • Pension Protection Fund Tel: 0345 600 2541 www.ppf.co.uk

Phone social tariffs • BT Basic Tel: 0800 800 150 www.btplc.com/inclusion/

• www.moneyadviceservice.org.uk www.moneyandpensionsservice.org.uk www.maps.org.uk www.moneysavingexpert.com

P Pension Credit

• Advisory, Conciliation and Arbitration Service (ACAS) www.acas.org.uk Tel: 0300 123 1100

• Pension Credit Helpline: 0800 99 1234 www.gov.uk/pension-credit

• Insolvency Service www.gov.uk/government/ organisations/insolvency-service

Redundancy

• RP1 Redundancy Form www.gov.uk/government/collections/ redundancy-payment-forms • Redundancy Payments Service www.gov.uk/redundancy-your- rights/ redundancy-pay

Redundancy Pay, short-time working and lay-offs • Redundancy pay calculator www.gov.uk/calculate-yourredundancy-pay • Labour Relations Service (Northern Ireland) Tel: 03300 555 300 www.lra.org.uk • Trades Union Congress (TUC) Tel: 020 7636 4030 www.tuc.org.uk • Citizens Advice www.citizensadvice.org.uk www.citizensadvice.org.uk/wales www.citizensadvice.org.uk/about-us/ northern-ireland • Citizens Advice Scotland www.cas.org.uk

• Relate www.relate.org.uk • Rent-a-room relief scheme www.gov.uk/rent-room-in-your-home/ the-rent-a-room-scheme

Recruitment Agencies • www.agencycentral.co.uk www.recruitmentdirectory.co.uk

Starting a business • England www.gov.uk/browse/business Business Link www.businesslink.gov.uk • Wales businesswales.gov.wales bethespark.wales

• Register a company - Companies House Tel: 0303 1234 500 www.gov.uk/government/ organisations/companies-house • Statutory guarantee pay www.gov.uk/lay-offs-shorttimeworking/ guarantee-pay • Statutory redundancy pay calculator www.gov.uk/calculate-yourredundancy- pay

Savings - accounts to compare

• Scotland Business Gateway Tel: 0300 013 4753 www.bgateway.com

• www.moneysavingexpert.com www.moneyfacts.co.uk www.moneysupermarket.com www.comparethemarket.com www.moneyadviceservice.org.uk

• Northern Ireland InvestNI www.invetni.com NI Business Info www.nibusinessinfo.co.uk

• Skills Development Scotland Tel: 0800 917 8000 www.skillsdevelopmentscotland.co.uk

• Businesses for sale www.businessforsale.com www.daltonbusiness.com www.nationwidebusiness.co.uk

• Tax Credit calculator www.gov.uk/tax-credits-calculator

• British Franchise Association Tel: 01865 379892 www.thebfa.org

Unfair dismissal or discrimination Contact the GMB North West & Irish Regional Office on 0151 727 0077 or your local GMB Branch or Shop Steward for advice and support.

Stamp duty /Land tax • www.gov.uk/stamp-duty-land-tax

• Register as self-employed www.gov.uk/working-for-yourself

T Tax Credits • www.gov.uk/browse/benefits/taxcredits

Notes 70

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www.gmbreachout.org.uk We have tried to make sure that the information contained within is correct at time of printing. It is possible, that some of it is oversimplified, or may become inaccurate over time because of changes to UK law. You are advised to always check the current position before taking action. For further information please refer to the governments Money Advice Service.

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