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There's a huge amount of cutbacks and headcount losses across many industries, and unfortunately this means human casualties - people losing their jobs, often without any warning, in a challenging economic climate.
And it's fair to say the perm jobs market is too, in disarray - with no shortage of people looking for work for months on end, with little or no success.
So many folk in this situation may consider freelancing - either taking the redundancy as the prompt to do what they'd been thinking about for a while, or perhaps as a stop gap to generate income whilst looking for something more long-term, or to see what it's like and whether it's right for them.
You may be reading this because this is you right now.
When I talk to people who are considering freelancing, my advice is always the same - make sure you're clear on your finances, make sure you have some emergency funds saved up, and make sure you do the prep work to get ready for moving into self-employment.
But if you've just been laid-off - you don't have the luxury of planning and preparing.
So this guide is designed to help you RAPIDLY understand what you should be aware of and what you need to start doing, in order to get started as a freelancer. No fluff or faff, and no hard sell on freelancing as the right thing, just pragmatic advice.
nb. - this guide is very much written for those in the UK - so some resources or recommendations may not be as relevant if you’re elsewhere in the world.
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Any questions or suggestions? drop me an email, I’ll do the best I can do reply to as many as possible.
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“To some degree, I saw it coming. But that didn't really make the emotional onslaught any easier. It was an enormous wave of grief. I felt like I'd lost my entire identity from one minute to the next. I just felt entirely lost.” Ramona, lost a 10-year role in April 2024
So, you’ve found yourself out of work - perhaps you knew it was coming for a while, or maybe it was a complete shock. You’ll need to take a moment to figure things out before you jump into anything else.
It can be massively traumatic and unsettling to lose your job without warning.
Be upset. Be angry. Be shocked.
Take some time to take care of yourself before doing anything else.
Seek support, take it slowly, have some lie-ins, go for some long walks.
Talk to people who love you and care about you.
In many ways you might be experiencing something akin to grief - a sense of confusion, loss, anger, denial, and it can take time to come to terms with things.
Even though most redundancies aren't anything to with you as a person, as a professional, it can still kick you in the confidences.
In the best situations, you might have some redundancy pay to cover you for a little while, so you aren't pushed into doing anything right now.
It's important to be aware of what your rights are during the process.
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Whilst this guide doesn't go into detail on your rights, there are some hugely valuable resources we recommend to review.
NABS - the support charity for advertising and marketing have brilliant resources on redundancy, helping you understand the consultancy process and your rights. https://nabs.org.uk/advice/redundancy/. They also have a helpline (0800 707 6607) or you can email them
Money Helper - the excellent government resource has fantastic resources on the topic, your rights, and support for issues beyond redundancy, such as dealing with debt. https://www.moneyhelper.org.uk/en/money-troubles/cost-of-living/job-loss
Mind UK - the leading mental health charity has some guides on dealing with job loss and redundancy, offering practical tips on the experience's effect on your wellbeing https://www.mind.org.uk/workplace/mental-health-at-work/coping-with-redundancy/
Club Redundo - this supportive community helps people working their way throug redundancy, offering resources and coaching. It's really helpful to individuals who might be struggling to have others who are experiencing a similar situation, along with expert advice and guidance from the hosts. https://clubredundo.com/
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It's entirely possible that you haven't done a personal budget in a while. Now is a good time to review your outgoings, your savings, any emergency funds. Consider putting a temporary pause on any luxuries. Review those subscriptions. Some mortgage providers or credit card companies might consider a pause on repayments too.
Take a look at what your income was, and what your essential costs are - look at how long you can be out of work for, if you had zero income. Try and get a realy clear picture of your financial situation. You might be okay, you might be in a bad place - but without doing the numbers, you won't know what you need to prioritise.
Doing a budget (for most people) sucks. It's not a fun exercise, it can be quite scary looking at your spending, especially if you're not used to doing it, and many feel anxious about starting a budget, because ignorance can be bliss. If you don't know the scale of your problem, it's less worrying right? Well, knowing your real situation is critical - else you might be more worried than you need to be, or you might not be taking the steps you have to.
Once you've done a budget based upon your employed income, you'll next need to see what your minimum income might need to be - are you looking to match your previous income, or do you have some room to cut costs and reduce spending for a while, whilst you work out what's next? Do you have some savings? How long will your savings and any income from redundancy last you?
Ensuring you’re aware of how much of a ‘buffer’ you have helps you understand the reality of your situation, and what you might need to bring in each month.
If you've less than £16,000 in savings (including any redundancy pay) and little or no income, you might be eligible for Universal Credit, but bear in mind, any freelancing income will reduce your UC, based upon your earnings.
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Step Change have a simple guide to creating a budget - where it says "income", use the past 12 months as a baseline, rather than putting your current income - as you need to set a baseline from when you were employed. https://www.stepchange.org/debt-info/your-financial-situation/making-a-budget.aspx
Money Helper has a handy tool which helps you fill out the numbers, and works it out for you. Again, bear in mind, your "income" will need to be based upon what you were making, not what you're making right now - which might be nothing. https://www.moneyhelper.org.uk/en/everyday-money/budgeting/budget-planner
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Universal Credit - the new ‘jobseekers allowance’, ‘unemployment benefits’, etc. https://www.gov.uk/universal-credit
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Contact your mortgage, landlord, credit card, and loan providers as soon as possible - ideally before you miss any payments. Be upfront about your situation, explain your redundancy, and ask about temporary support options such as payment holidays, reduced payments, or tailored repayment plans.
Many lenders offer temporary arrangements (payment holidays, reduced payments) that don’t affect your credit score if agreed upfront. Always get agreements in writing and keep clear records of all conversations. Prioritise rent/mortgage, council tax, and energy - missed payments here have the biggest consequences.
If you are feeling concerned, don't wait for things to pile up - seek support and advice. Speak to organisations like NABS (or similar charities in your sector) or Step Change, or even your bank, which can often offer impartial advice for people struggling financially.
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Step Change are a UK charity who support people facing debt and financial difficulty: https://www.stepchange.org/
NABS are the advertising and media industry charity, and have a fantastic helpline: https://nabs.org.uk/get-help/
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Credit Score - a numerical rating that reflects your creditworthiness—essentially how likely you are to repay loans or credit based on your financial history, including borrowing, repayments, and outstanding debts. Learn more.
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