Debt Management: Survival Incomes.

How much does it cost to simply survive in our society during current times? Given the rapidly increasing levels of unemployment, as thousands upon thousands of employers close their gates and cast off their employees with statutory redundancy packages, a great number of people are likely to find out the answer.

The official answer to this question would appear to be £300 a week. This appears to be the sum the Post Office has calculated would be needed for the average person to survive if they found themselves made redundant. The average level of savings in the UK is relatively low. Recent estimates have found that approximately 40% of the working population have savings that represent under a single month's income. In addition, only 30% of the working population have unemployment insurance.

Of course there are redundancy payments, but in circumstances where redundancy is a result of company closure these are likely to be at the minimum statutory levels. Redundancy payments are based on a maximum weekly wage of £380 a week. (before the last budget this was £350 a week). However, to qualify for any redundancy payment at all it is necessary to have been employed by the same employer for at least two years. For people who qualify for payment, they receive the equivalent of between half a week's wages and one and a half weeks wages, depending on their age, for each full year of employment (subject to the maximum wage of £380, so this means a maximum payment of £570 for someone over 41 years old). For someone with 10 years service aged over 41 could receive a tax free payment of £5,700.

Anyone made redundant will qualify for various allowances. There is the Jobseekers Allowance which is available for those with national insurance contributions along with a Jobseekers Allowance that is based on salary, though this is reduced for any savings that are held. The maximum payment is £64.30 a week. In certain circumstances Housing Benefit, and Council Tax Benefit night be available.

For people with savings, being out of work for some time will quickly erode their cash and for those without savings will scarcely be able to avoid going into debt. It is essential that people who find themselves in debt due to these and similar circumstances take early advice on debt management in order to avoid possible severe consequences.

For people with savings, being out of work for some time will quickly erode their cash and for those without savings will scarcely be able to avoid going into debt. It is essential that people who find themselves in debt due to these and similar circumstances take early advice on debt management in order to avoid possible severe consequences.