The Salary Calculator

The new year brought with it big changes to mortgages, with expanded borrowing terms and rate cuts, continuing December’s price war.

Entering February, the tide has turned, with rates lifting again across a number of lenders.

This week at The Salary Calculator, we’ll explore what these changes mean for buyers, tips for navigating mortgage deals, and what’s ahead across the mortgage landscape.

Mortgage market changes

Last year, cuts to the UK base rate led to greater mortgage affordability, with lower borrowing costs across providers. 

This trend continued into 2026. 

According to Moneyfacts’ UK Mortgage Trends Treasury Report, in early January, the average two-year fixed mortgage rate was at 4.83%, down from 5.48% at the beginning of 2025, while the average five-year fixed rate was 4.91%, down from 5.25%.

But mortgage rates fell even lower. Lenders like NatWest, Barclays, Halifax and Nationwide all hit the headlines after significantly cutting their rates, some to as low as 3.5% for fixed-rate deals.

In January, the latter additionally announced it was extending its high loan‑to‑income (LTI) lending, enabling home movers and remortgaging customers to borrow up to six times their income.

And earlier in 2025, following updates to the Financial Conduct Authority’s (FCA) guidance, major lenders also relaxed their mortgage stress tests, which evaluate the impact of future interest rate rises on a borrower’s mortgage payments.

This month, on the mortgage front, the trend of low rates has shifted.

A number of lenders have increased their rates, including Nationwide and NatWest, ahead of the Bank of England’s (BoE) base rate decision — which was ultimately held at 3.75% — underscoring the market’s unpredictability.

Nationwide has announced it is increasing its rates by 0.19 percentage points, Barclays by up to 0.15 percentage points and Natwest by 0.10 percentage points.

Those who are now at the end of their low-cost five-year fixed terms will also be bracing themselves for a hike. 

Responding to the base rate decision, Ben Thompson, Director of Home Moving Strategy, Mortgage Advice Bureau, said the BoE had “opted for the safety of the sidelines.”

“Despite inflation moving in the right direction, the MPC clearly isn’t ready to hit the accelerator on further rate cuts yet. That said, we still hope for a couple more cuts this year before we get close to some sort of new equilibrium,” he added. 

What does this mean for buyers?

Thompson advised that, as lenders will have already priced in this latest hold, the deals on the shelves today are “likely as good as they’re going to get for a little while.” 

“Arguably, the smart move right now isn’t trying to wait out the market for a perfect moment that might not come: it’s about finding a deal that actually fits your life and your budget,” said Thompson.

“Mortgage affordability has been a frustrating hurdle for first-time buyers”

And, with research from Twenty7tec finding that more than half of first-time buyers in the UK earn less than a combined £60,000 and house prices up 74 per cent over the last 20 years, mortgage affordability is front of mind for many as they navigate these recent shifts.

But some forecasts suggest the mortgage landscape remains broadly positive, and the BoE also shared that the Bank Rate is “likely to be reduced further.”

“Mortgage affordability has been a frustrating hurdle for first-time buyers,” commented Rachel Springall, Finance Expert at Moneyfactscompare.co.uk. “Thankfully, falling mortgage rates and stress test relaxation over the past 12 months is giving buyers a better chance to secure a deal.”

Springall said that the relaxation in stress testing can help ease affordability constraints, and noted that more lending at higher Loan-to-Value (LTV) ratios was evident last year, adding that further growth is looking “promising” in 2026.

Rachel Geddes, Strategic Lender Relationship Director, Mortgage Advice Bureau, echoed this: “The Bank of England reducing rates in recent months is excellent news for homebuyer affordability.”

Geddes explained that lower monthly payments not only ease the pressure on finances but also provide the flexibility to reduce mortgage terms, keeping repayments at a “comfortable level” and enabling homebuyers to potentially pay off their home much sooner than originally planned.

Geddes called the combination of rate cuts and expanded borrowing criteria a “game-changer” for those who felt priced out of their ‘next step’ property.

However, against the backdrop of product choice being at its highest level in years, and lenders “actively wanting to lend,” speaking to an adviser is essential, Geddes said.

“They can cut through the noise to find the specific deal that aligns with your financial goals,” she noted. 

Springall shared a similar sentiment: “Seeking independent advice is wise to pick a mortgage which provides the best overall value, both with an attractive rate, incentives and low or zero application fees.”

What’s ahead in 2026?

Looking ahead, Springall said that innovation is set to become a “key talking point” this year, with expanding options for first-time buyers and modernising regulation to be reviewed by the Financial Conduct Authority.

Indeed, the FCA has set out its priorities for its mortgage market reforms, one of which is aimed at people with different working patterns and income levels at different stages of life. 

This reform aims to simplify mortgage rules to allow more flexible products for those with variable incomes, making it easier for more people to get on the housing ladder.

“…there does need to be more progress to address the lack of affordable housing”

According to Springall, building societies “lead the charge” in providing “innovative products” for new buyers, naming the Track Record Mortgage from Skipton Building Society, the Helping Hand offer from Nationwide and the Rent to Own mortgage from Hanley Building Society as examples.

She noted that the Government wants lenders “to do more” to support buyers to boost UK growth, but added that affordable housing is a key issue: “…there does need to be more progress to address the lack of affordable housing, as those with little equity are at risk if house prices plummet.”

For those questioning their next move in light of the recent changes, having all the facts is key, but Geddes advised that it’s important not to fall into the trap of “waiting for things to get better,” as market conditions can change. 

“There are no guarantees that rates will drop significantly further, so focus on what is achievable for you today,” said Geddes.

The UK’s financial literacy rate ranks among the lowest when compared to similar economies, with some research finding that 73% of the country falls below the financial literacy benchmark. 

This has very real implications for day-to-day life, with poor money literacy leaving people “worse off” financially.

Money habits form as early as 7, meaning schools can play a big role in equipping young people with the financial skills they need to navigate life. But research indicates schools aren’t yet meeting the mark.

In November, the government announced plans to target this education gap as part of its broader curriculum changes.

This week at The Salary Calculator, we’ll explore what those changes mean, what’s ahead, and avenues for continued financial education.

Low financial literacy rates

In 2024, abrdn’s Savings Ladder Index found that the UK’s financial literacy was “concerningly low.” 

The global investment company asked people the “big three” questions on interest, inflation and diversification, and found that 44% (23.3 million UK adults) were classified as having poor financial literacy.

According to the firm, this lack of financial literacy has broader implications for people, including being significantly less likely to have savings and a “pension penalty” of £10,000. 

Following the findings, the investment company, along with MyBnk (now Money Ready) and the Just Finance Foundation, penned an open letter to the government, highlighting the role of financial education in driving social mobility.

“Too many people still leave school unprepared”

Financial education was introduced into the curriculum back in September 2014 as part of Citizenship Education for those aged 11 to 15, but implementation has been patchy.

“Despite financial education being on the secondary curriculum for over a decade, too many people still leave school unprepared,” said Leon Ward, CEO, Money Ready.

Research suggests that just two in five young adults are financially literate, while more than half (61%) do not remember receiving financial education at school.

A recent report from the All-Party Parliamentary Group (APPG) on Financial Education for Young People shared further insight into these findings. In particular, the APPG report found a disparity in financial education both across and within UK nations, a lack of support for post-16 education, and a digital financial literacy curricula lag.

Curriculum changes 

The government’s Curriculum and Assessment Review was launched in 2024 to assess the education landscape — the first time the curriculum had been reviewed since the early 2010s. 

The report, published just before Christmas, underlined that children’s money habits begin early and go on to shape their financial capabilities later on in life, while also spotlighting that children are increasingly making digital financial transactions themselves. 

However, the report shared that, in practice, the financial education content already in the national curriculum is not always taught, and almost half of parents believe that too little time is spent on financial management skills.

The report recommended that, going forward, students should first be introduced to mathematical concepts (such as percentages) in Maths before learning about their practical applications (like compound interest and loans) in Citizenship.

It was also recommended that Citizenship, and its financial education elements, be introduced as part of the national curriculum at Key Stages 1 and 2 — one of the government’s key reforms. 

The final revised national curriculum is set to be published by Spring 2027.

Money Ready’s Ward called the review’s recommendations on financial education a “great step forward,” but said that now the focus must be on “making practical money lessons a reality,” adding that schools need support to embed impactful money lessons, with topics including “budgeting, earning, credit and saving.”

Indeed, a 2024 report from the Social Market Foundation found that 54% of primary and 75% of secondary teachers said that they do not have enough time on their timetable to give their students a “strong foundation” in financial literacy. 

“The earlier children begin to understand money, the better equipped they will be”

Meanwhile, 36% of primary teachers said they would feel either ‘not very confident’ or ‘not at all confident’ in teaching financial education if it were to become part of the school curriculum, underscoring the importance of teacher training, development and guidance in this area. 

Abby Birch, a financial wellbeing and money expert, said the planned curriculum changes are “welcome” after many years of campaigning to make financial literacy compulsory in schools.

“These are fundamental life skills, and the earlier children begin to understand money, the better equipped they will be to make informed and confident financial decisions,” noted Birch.

For Birch, in terms of priorities, the focus should be on personal budgeting and day-to-day money management, alongside building financial resilience, including the role of emergency funds.

“As pupils progress, it is important they learn how debt works, and gain a basic understanding of mortgages and home buying, which are major financial decisions many adults feel unprepared for,” she added. 

Indeed, 2025 research from mortgage broker Boon Brokers found that 58% of young adults aged 18–24 surveyed said their school did not provide facilities to learn about mortgages.

Continued financial education

But, with the new curriculum not due to be implemented until 2028, it will be some time before students see the benefits of these financial education changes. 

“These changes will take time to embed and will not impact today’s workforce,” explained Birch, adding: “In the meantime, it remains vital that employers continue to support financial wellbeing in the workplace, so people can build confidence and capability with money now.” 

Research shows that employees would welcome this kind of support, too, with a Pluxee study of HR professionals finding that 68% reported a rise in requests for financial education or support initiatives in 2024.

Leon Ward, CEO, Money Ready

“Financial education equips people of all ages to flourish”

Outside the workforce, Ward noted that, in addition to providing financial education in primary and secondary schools, Money Ready helps people manage their money at “key transition stages,” from entering higher education and beginning work to starting a family and buying a home.

Sites like MoneySavingExpert also provide personal finance help for both children and adults, offering a free personal finance course, MSE’s Academy of Money, available through the Open University. The course covers a wide range of topics, from budgeting effectively and income tax to borrowing money responsibly, savings, and pensions.

Of course, our own Salary Calculator helps show the effect that income tax, NI, student loan and other deductions can have on your take-home pay.

Organisations like Citizens Advice, Money Helper, StepChange and Turn2us can also provide guidance and support across a variety of personal finance areas, including debt, budgeting and money management.

“Financial education equips people of all ages to flourish, because the language of money is one we all deserve to understand,” said Ward.

With Mariah Carey blasting from supermarket speakers, the distant jingle of bells, and cinnamon wafting in the air, Christmas is right around the corner. 

But, while the festive season is a time of celebration, it can often come with a hefty price tag. 

This year, around a third of Britons are worried about the financial impact of Christmas, with 43% of parents feeling pressured to overspend.

Christmas doesn’t have to break the bank, though. By keeping spending in check and getting creative, you can keep costs low and spirits high. This week at The Salary Calculator, we’ll show you how. 

Making a list, checking it twice

From Christmas trees and decorations to secret Santa and family get-togethers, on average, households spend around 29% more during the holidays. 

“Behavioural research shows that when we make financial choices under pressure or fatigue, we default to instinct”

According to a recent YouGov poll, a median of £300 goes on presents, £150 on food, and £50 on seasonal travel.

And that doesn’t take into account all of those little extras. 

“Christmas becomes expensive not just because of the big purchases but because of the dozens of small, unplanned decisions people underestimate,” said financial wellbeing expert Sarah McCalden.

That’s how spending can spiral. 

“Behavioural research shows that when we make financial choices under pressure or fatigue, we default to instinct rather than conscious planning, which is why overspending feels almost automatic in December,” McCalden added. 

McCalden advises starting by choosing your overall Christmas limit and dividing it into clear categories: gifts, food, travel, and social events. 

“This reduces decision fatigue and gives your brain a framework to follow and track your spending weekly throughout December,” she noted, explaining that most people underestimate their actual spending by up to half. 

Using a budgeting app can also help you track your spending and check whether you can cut anything out.

Second-hand gifting and homemade decorations 

Alongside putting a spending limit on purchases, shopping second-hand can be a great way to make your money go further.

With some items costing around a fifth of the retail price, charity shops are an avenue for affordable gift-giving, while giving back at the same time. 

Most charity shops have a dedicated kids section, so whether you’re on the hunt for an action figure, a children’s book or a monopoly set (although, maybe best skipped at Christmas), there are options for all ages. 

Last year, Oxfam found that a quarter of adults planned to buy second-hand gifts for children at Christmas.

To find more specific wish-list items, you can also grab a pre-loved bargain at an online second-hand marketplace like eBay, Depop, Facebook Marketplace or Vinted. 

And from baubles to stockings, this time of year, charity shops are overflowing with Christmas decorations at a fraction of the retail price. 

Or, you can make your own. 

Foraging for Christmassy foliage can be a fun activity to enjoy with friends and family that adds a festive touch to your home, entirely for free — whether that’s evergreen pine arranged on a table, fir leaves and berries for a homemade wreath or hanging branches.

If you fancy getting even more crafty, you could try making your own snow globes using old jars, collecting and painting pine cones, or crafting a wooden spoon angel.

The same goes for presents. Christmas biscuits, chocolate truffles and honeycomb all go down a treat, and can be made on a budget.

Budget-friendly feasts 

And while food costs are up this year, putting together a tasty Christmas dinner doesn’t have to cost the earth. 

Start by checking out supermarket comparison websites to find where you can make the biggest savings. 

According to a recent Which? analysis in November, Aldi won the crown for the cheapest supermarket, with 70 items costing £121.22 on average. 

Waitrose (£166.79), Ocado (£154.37) and Sainsbury’s (£141.62) were comparatively the most expensive.

But, by shopping at some supermarkets, you can keep the cost of Christmas lunch as low as £11.93 for four. 

It’s worth noting that store loyalty cards can help you bring down your supermarket spend, too, and this year, some offer customers Christmas rewards and freebies as well.

Yellow stickers can also be great for last-minute deals, while the Too Good to Go app can help you find low-cost food from supermarkets, cafes and restaurants. And from bubbly to Christmassy confectionery, own-brand alternatives can save you a pretty penny.

If family and friends are coming over for grub, asking them to bring a side dish or take on trifle duty can also lighten the load.

Any leftovers from Christmas day can be whipped up into sandwiches, soups, stews or even a re-roast — the rest can be frozen.

Avoid spending what you can’t afford

With Black Friday deals and Buy Now, Pay Later options at checkout, it might be tempting to go beyond your budget or delay payment, especially when one in four people who celebrate Christmas can’t afford to set money aside. 

“Christmas should be about joy, not debt”

However, charities urge caution when it comes to Christmas credit. 

This year, debt charity StepChange research found that for more than two in five borrowing, it will take more than six months to repay the credit they use this Christmas. For nearly one in five, it’ll take more than a year. 

“Christmas should be about joy, not debt – but we know the pressure to spend can feel overwhelming,” said Grace Brownfield, Head of Influencing and Communications at National Debtline, who advised talking openly with friends and family about what you can actually afford. 

“Honesty can ease the pressure and avoid misunderstandings,” she noted. “Most importantly, avoid borrowing for presents; the short-term excitement isn’t worth months of stress.”

And you don’t have to spend money to have fun. This year, swap Santa’s Grotto and the ice skating rink for some Elf on the Shelf magic or a scavenger hunt. Have a stroll to check out the festive lights, get stuck into a Christmas movie marathon and check out free local events in your area across the Christmas period. 

And, if money worries are stacking up, know you’re not alone. 

Brownfield recommends reaching out for help as soon as possible. National Debtline offers free, confidential help at 0808 808 4000.

For Seetal Jutla, a wedding and floral preservation artist, lockdown signified a new beginning — and it all started with a flower delivery.

In the UK, the side hustle scene is hotting up. Between 2023 and 2024, the number of side hustles increased by 20 per cent, with entrepreneurs now earning an average of £5,420 per year. This week, The Salary Calculator speaks to Seetal Jutla, the owner of Playing with Flowers, a wedding and floral preservation business, about her side hustle success and the joys of flower pressing.

When a colleague’s thank-you bouquet arrived at Seetal’s doorstep nearly five years ago, against the backdrop of Covid-quarantines and stay-at-home orders, it was a gift that let the light in. 

“[The flowers] were so lovely and I really appreciated the sentiment behind them,” said Seetal. “My manager suggested I press them.” 

Feeling inspired, Seetal placed the flowers in a book, and it wasn’t until five months later that she came across them again while tidying up.

“I decided to make something for a friend of mine — just a little keepsake in a frame — and that sparked the whole journey,” Seetal explained. 

Image credit: Seetal Jutla

From there, through trial and error, she began to experiment with different flowers (courtesy of her neighbour’s garden) and pressing techniques, making gifts for friends and family. 

“At the time, I wasn’t thinking I could make this into a business,” said Seetal, noting that the idea to press wedding flowers came from a friend. 

So, when a colleague announced that they were tying the knot, it seemed like a natural next step. “It grew organically from there.”

For Seetal, who had never felt artistic before, flower pressing became a process that brought her both a great sense of fulfilment and a method through which to practice mindfulness — especially when her mother passed away. 

“It was a kind of coping mechanism,” said Seetal, who added that flower pressing has continued to help her through her healing journey. “I think having something outside of my day job really helped as a distraction, but also as a creative outlet,” she said.

Establishing the building blocks

Seetal explained that along the way, she’s learned new ways to structure her work, expanded her skill set, and discovered tools that have helped her shape and streamline her business.

Having started from scratch, every day is a learning experience, she said, whether she’s using spreadsheets to track enquiries, frames and orders or building out her branding, social media and customer communications. 

Working out a pricing strategy in particular has been challenging, Seetal explained: “I think it’s really difficult when you’re doing something creative because people say, ‘How can you put a value on art?’” For Seetal, this means balancing affordability with valuing her time and skill.

According to Seetal, the wider flower pressing community has been a vital source of support, too, whether that’s helping to draft terms of service or connecting with local framers and florists.

“AI has also been an absolute godsend for streamlining and helping with the strategy side of things,” said Seetal, who juggles her side hustle alongside a full-time job. 

A business balancing act

Seetal is not alone here. Research from Sage shows that almost half of Brits now manage a side hustle alongside their job. 

“It’s challenging balancing a full-time job and the side hustle, especially because [the business] has grown quite significantly.”

Beyond flower pressing, which Seetal said requires both time and patience, a lot of work goes on behind the scenes, from business management to packaging and deliveries.

“Every challenge has made me more confident”

While compressing her full-time hours has freed up one day a fortnight to focus on order admin, Seetal noted that time scarcity is not the only challenge that comes with running a business. 

“It’s easy to compare yourself to others online — I fell into that early on, and it can be damaging,” she explained. 

Seetal noted that as someone who has often struggled with self-doubt, she finds it important to remember that everyone’s journey is unique, adding that social media “shows the highlight reel, not the process.”

“Every challenge has made me more confident,” said Seetal. “Now I feel ready to take on opportunities like wedding fayres and put myself out there more.”

Start small, be authentic

Indeed, for those thinking of launching their own side hustle, Seetal advised to start small, learn as you go and be authentic. 

“You don’t need a grand plan, just curiosity,” she shared, encouraging budding entrepreneurs to take mistakes as lessons, rather than failures.

“Keep the joy alive — it should bring you peace and fulfilment”

When building out your business, Seetal said that it’s also important to set boundaries to ensure your side hustle remains enjoyable: “Keep the joy alive — it should bring you peace and fulfilment, not pressure.”

One such boundary Seetal has put in place is containing the business to social media platforms like Instagram and Facebook, rather than launching a website.

“It helps me to manage not just my time, but also my commitment in terms of how much of myself I’m willing to put into the side hustle,” explained Seetal, adding that this decision also minimises business costs.

Likewise, the flower preservation artist said that it’s essential to keep both feet on the ground when making business decisions. 

“People ask me all the time, ‘Are you going to go full-time?’ ‘Are you going to leave work?’ It would be amazing if I did, but it’s just not realistic,” she said, adding that her side hustle is largely seasonal.

Image credit: Seetal Jutla

“Growth takes time, and stability matters,” said Seetal, noting that while one day she’d love to expand the business into full-time, for now, alongside providing an avenue for creativity, the business contributes an extra source of income each month.

Indeed, supplementing full-time income is one of the key drivers behind the rise in side hustles, recent Royal Mail research shows.

But, while side hustles may initially start as a means to boost monthly income, that doesn’t stop them from flourishing into more. According to a Small Business Britain and eBay survey, 39% of small businesses began as side hustles, with 46% growing into full-time businesses. 

And this year, Seetal’s business has continued to grow, with order intake doubling, something which she attributes to word of mouth.

“I love that what I do now brings happiness to couples, preserving something deeply emotional from their day,” Seetal said. 

Back in February, redundancy intentions rose to their “highest levels” in the last ten years, outside of the pandemic. By May, one in four employers shared their expectations to make redundancies in the next three months. Fast forward to August, and Bank of England data showed that this summer, British businesses cut employment at the fastest pace in four years.

September continued this trend, with reports that business confidence had dropped to record low levels.

Against the backdrop of a challenging economic landscape, it’s important to be aware of your rights and prepare for potential job loss. This week at The Salary Calculator, we’ll help you do just that, exploring:

• The rise in redundancies 
• What legal protections are in place?
• How to best navigate redundancy

The Rise in Redundancies 

Last month, the Bank of England’s Decision Maker Panel survey of 2,126 companies revealed that from May to August, companies reduced their headcount by 0.5% — the fastest rate since 2021.

Of those surveyed, just under half (46%) said they had cut jobs due to increases in national insurance (NI) contributions, which rose to 15% in April.

A recent report from KPMG and REC echoed similar findings, reporting the “steepest upturn in candidate availability since November 2020” in the shadow of falling vacancies and redundancies. 

Alongside tax-driven redundancy decisions, Acas research shows that this year, workers have also been worried about the impact of AI on jobs. Back in April, more than a quarter (26%) shared concern that AI will lead to job losses.

So how do these fears match up with the figures? It’s complicated.

While at the beginning of the year, a World Economic Forum paper reported that 40% of employers anticipated reducing their workforce where “AI can automate tasks,” an Orgvue report in April found that 55% of UK businesses actually regret AI-driven redundancy decisions.

But whether tax or tech-related, from hospitality and construction to journalism and healthcare, few sectors have been untouched by job cuts this year.

What legal protections are in place?

As the job market cools and with an uncertain outlook ahead, it’s important to understand what legal protections are in place if you’re faced with redundancy.

“Understanding what you’re entitled to, like redundancy pay or notice periods, can help you plan your next steps with confidence,” said Thomas Gibbons, an adviser at Money Wellness, an organisation commissioned by the government’s Money and Pensions Service to provide free money, debt and income maximisation advice.

And these entitlements will vary depending on how long you’ve been working with your employer.

At the very least, you’re entitled to one week’s notice if you’ve been employed for between one month and two years. However, this can go up to 12 weeks’ notice for 12 years or more, with one week’s notice for each year employed between two and 12. 

Likewise, your redundancy pay will be calculated based on your age, weekly pay and how long you’ve been working with your employer. 

If you’re an employee and have been working with your employer for at least two years, you’ll be entitled to some form of statutory redundancy pay, with the maximum statutory pay being £21,570 — up to £30,000 of total redundancy pay is tax-free. 

You can calculate your entitlement here.

It’s also important to ensure that your employer pays you for any unused holiday, overtime, bonuses and commission. 

Looking ahead, legislation is in the works to bolster these legal protections. Within the next two years, employers will face changes to the consultation thresholds for collective redundancy and increases in the penalty for failure to consult in collective redundancy, set to double from 90 days’ pay to 180 days’ pay. However, no changes to redundancy pay or notice periods are expected.

How to best navigate redundancy

In addition to equipping yourself with this knowledge, planning ahead will put you in good standing. 

“Facing redundancy can be daunting, but preparation is key to navigating it with resilience,” said Níamh Kelly, director of The HR Dept Shropshire, Wrexham & Chester and Mid Wales. “As a HR professional, I’d advise starting by reviewing your financial situation.”

Simon Trevethick, head of communications at StepChange Debt Charity, shared a similar sentiment: “If you find yourself in this situation the first thing to do is make a detailed budget to take stock of your future monthly income and outgoings. If you already have one, it will likely need revising.” 

StepChange has some useful budget templates to help you do this.

Trevethick noted that, on the income side, it’s important to work out how much money you have coming in from your old employer, how much you have available in savings, and if you are entitled to any benefits whilst out of work. 

“Once you have a clear budget, you’ll be able to reduce any unnecessary expenditure – this may seem drastic but could make the difference, and it won’t be forever. From here, set a strict budget over the coming 3-6 months so that you can cover essential costs,” he added.

“It’s important to contact your creditors as early as possible to let them know you’re facing redundancy”

“Even small actions, like safeguarding a bit of savings or considering short-term work, can make a big difference. Reaching out early is a positive step and can make the transition a little easier,” said Gibbons, adding that, if you need extra support, reach out to creditors early.

“Most are happy to discuss flexible options,” he advised.

Trevethick echoed this: “Too often, we see people wait until the point of crisis to reach out for help. It may seem daunting, but it’s important to contact your creditors as early as possible to let them know you’re facing redundancy. Whether it’s your mortgage provider, energy supplier, or bank – they deal with these kinds of issues every day, and can offer tailored support and options to get back on track.”

And for those struggling with debt, StepChange offers free, impartial, and independent debt advice. “Our online, expert backed service is on hand 24 hours a day 7 days a week to support you on your journey from financial difficulty back to financial health,” said Trevethick.

Alongside these financial measures, Kelly advised that upskilling or reskilling can also open doors to new opportunities, noting that investing in professional development is wise. 

“Redundancy isn’t just an end—it can be the start of a whole new career!”

Kelly explained that staying proactive by updating CVs, LinkedIn profiles, and reaching out to recruiters can help “maintain momentum.” But it’s also important to seek support, whether through networks, mentors, or career coaches, she said.

“As someone who was made redundant and then started their own business – I can honestly say redundancy isn’t just an end—it can be the start of a whole new career!” said Kelly.