How to cope with unemployment

Unemployment can be one of life's toughest challenges, but there are many practical steps you can take to help you best cope.

Employee rights in job downturn

An array of information is available through the BBC News website and various groups offer help for people who are unemployed.

Here is a guide to some of that advice and information.

Redundancy

Claiming benefits

Looking for a job

Your mortgages and risk of repossession

Budgeting and facing your debts

NEGOTIATING REDUNDANCY

If you have worked continuously for the same employer for two years or more, you are likely to be entitled to statutory redundancy pay.

The first £30,000 of redundancy pay is tax-free but the rest, including unpaid wages and bonuses, may be taxed.

Check out what happens when your employer goes into administration.

There are also complicated rules for employers on income tax surrounding redundancy payments.

But there are also opportunities for businesses to strengthen their position.

If you are being made redundant, there are tips on negotiating redundancy payments available from the TUC.

Employers can read this guide on the tax pitfalls of redundancy.

There is advice and training available from the conciliation service Acas.

Those in Northern Ireland can get free advice on employment rights from the Labour Relations Agency .

And if you are given notice of redundancy, you are entitled to some paid time off to look for a new job - provided that, by the time your period of notice ends, you have been with the employer for two years.

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LOOKING FOR A JOB

Graham Helton of Jobcentre Plus explains what can be done to get back into work

UK unemployment is at its highest level since September 1997 and the situation is likely to get worse.

But Jobcentre Plus says there are still job vacancies in the UK at any time.

People looking for a job can start with a database of jobs held by Jobcentre Plus. As well as doing this online, you can get information about positions and how to apply by telephone.

In addition there is a seperate database of jobs in Northern Ireland.

The website also gives advice on writing, or updating your CV - which an adviser at your local Jobcentre Plus office can also help with.

Careers advice is available, with bilingual advisers on hand. There are websites for people in England, in Scotland, Wales, and in Northern Ireland.

For information about training or learning new skills, there are also separate websites for people living in England, in Scotland, in Wales, and in Northern Ireland.

Jobseekers who find themselves unemployed for more than six months have been guaranteed more support in getting back to work by the government, including extra training for would-be employees and financial incentives for employers.

However the charity Credit Action, has produced an excellent guide to facing up to redundancy. It advises people not to panic and to take time to assess what kind of work you would like to do.

It also suggests using contacts to get work. But it warns against rushing out immediately after you are made redundant - this can be counter-productive if you are in an emotional state.

Organisations such as The Samaritans can offer help and advice if the emotional impact of being made redundant gets too much.

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CLAIMING BENEFITS

If you are out of work, you may be entitled to a series of benefits, including Jobseeker's Allowance (JSA) and Child Tax Credit. Employment and Support Allowance (ESA) may be available if you are sick or have a disability.

Most people are only out of work for a short amount of time, the Department for Work and Pensions says.

At least 75% of people who make a new claim for JSA are off it within six months.

If you are aged between 16 and 65 and are unemployed, you can find out what benefits you could be entitled to and how to make a claim.

Information about benefits can also be obtained on a trip to your Jobcentre Plus office, while you are looking for work.

Organisations such as Citizens Advice have guides to possible entitlements after you have lost your job.

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MORTGAGES AND REPOSSESSION

Take steps to avoid your home being repossessed

As unemployment rises, and people struggle to meet their mortgage repayments, the number of repossessions is expected to increase.

The Council of Mortgage Lenders (CML) has said the number of households more than three months behind with their repayments would reach 500,000 by the end of this year - more than twice the 2008 figure.

The government has announced a string of initiatives to try and keep people in their homes.

These include a scheme that sees not-for-profit housing associations buying homes from vulnerable people struggling to pay their mortgage and then allow them to continue living there.

The schemes differ, depending on whether you live in England, Scotland or Wales . Northern Ireland has launched a consultation document on a similar initiative.

The Income Support for Mortgage Interest (ISMI) scheme has been expanded, meaning that the time before homeowners who lose their jobs receive financial help with the interest payments on their mortgage has been cut from 39 weeks to 13 weeks.

Another initiative, the Homeowner Mortgage Support Scheme, will allow households that see their income fall unexpectedly to defer part of their payments for up to two years.

And lenders are to be legally compelled to use repossession only as a last resort, having looked at other alternatives with the borrower, such as reducing monthly payments.

Contact your lender immediately if you are struggling to meet mortgage repayments, preferably with a detailed proposal.

For first-time buyers and those remortgaging, make sure you choose the correct mortgage to suit your financial situation.

For further advice, start with some typical advice about avoiding repossession in England and Wales . Homeowners in Scotland have slightly different rules to be aware of. You can also read readers' stories.

Housing charity Shelter offers advice to householders in England and, because of different rules, separate advice for homeowners in Scotland.

To see advice from mortgage providers, check this Council of Mortgage Lenders' guide.

To find the level of mortgage to suit you, use the BBC mortgage calculator to help guide you.

There are also strategies for businesses giving them the opportunity to strengthen their position.

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BUDGETING AND FACING DEBTS

Lots of advice is available for coping with your personal finances

Financial hardship is an obvious potential problem if you lose your job, so it is worth facing up to this.

The number of people seeking advice from Citizens Advice bureaux about how to manage their debts surged by a third in the past year.

Experts urge people to be honest about money problems. For starters, you may want to take the BBC's Debt Test and Financial Healthcheck .

Keep up to date with priority debts, including housing, heating and council tax.

A good place to start is the Citizens Advice website.

Those facing serious financial difficulties could talk to a licensed insolvency practitioner.

There is help available if householders are struggling to pay their utility bills.

Advice groups include the Consumer Credit Counselling Service or the National Debtline.

Setting a budget and having a good overview of your income and outgoings can also help you to juggle your finances in tricky times.

The Credit Action redundancy helpsheet has a section on setting a budget, or you can use the charity's online budget calculator. Alternatively BBC Raw has a video guide to surviving redundancy, including an easy-to-use budget planner.

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