Maximise your REDUNDANCY

Finance journalist Katie Binns is here to help

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Being made redundant can come as a shock - but it's not you, it's the economy. While the UK redundancy rate is still low (3.3 per 1,000 employees, from November 2022 to January 2023), experts predict a mild recession, and the Bank of England expects unemployment to increase from 3.8% to 5.3% by the end of 2025. But if you are made redundant, here are five savvy ways to use your severance package.

1 Keep on top of bills

Paying household expenses is a priority, so cover your food, energy and fuel costs first.

2 Increase cash savings

Laura Suter, head of personal finance at investment platform AJ Bell, says, 'Put the money in an easy-access cash account, with the highest interest rate possible.' Work out the level of savings you're comfortable with - ideally at least three months' salary.

3 Pay off debt