The Consumer Credit Counselling Service (CCCS) has expressed concern about the high number of redundancies reported by the Office for National Statistics (ONS), which could lead more people to struggle with their debts. The ONS’ Reasons for Leaving Last Job 2011 report found that 43 per cent of people leaving their jobs in the second quarter of the year did so due to redundancy.

As well as impacting on their ability to pay household bills, redundancy can lead to people needing to downsize to a smaller property through buyers like Gateway Homes. Some people find that reducing their mortgage commitments makes it easier to shoulder sudden changes in financial circumstances.

“Redundancy is a huge financial blow for those affected. While many will find new jobs, large numbers will not or will have a gap before they do,” said Delroy Corinaldi, director of external affairs at the CCCS.

“This will leave them struggling with credit commitments they could easily keep up with before losing their job.”

To help people who have recently lost their jobs, the CCCS offers a free redundancy guide. The guide provides information on redundancy pay and rights, including benefit entitlement, government mortgage schemes and payment protection insurance.