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It's been a bad month for workers at the MG Rover plant in Birmingham, with over 5,000 staff receiving redundancy notices over the weekend. It's not so bad when only a few people in an area are made redundant, but when 5,000 workers appear on the job market in one go, life can be very tough indeed. Of course, mass lay-offs are nothing new and aren't confined to Longbridge. Indeed, not a day goes by without news of another company slashing its workforce or closing its doors for good. So, without further ado, here's my quick guide to coping with redundancy and strengthening your finances. And by the way, it's a topic that I know very well: after being made redundant myself, I later joined one of the UK's leading providers of unemployment insurance and spent over eleven years in this industry! 1. Try to grab an enhanced redundancy payout Of course, with MG Rover being insolvent with debts of hundreds of millions of pounds, there's no scope for its workers to get anything other than the statutory minimum award, which will be paid from public funds. This payment depends on your age and length of service, and it's less than generous, as this ready reckoner demonstrates. Even with forty years' service, an award for a 64-year-old man could be as little as thirty times £280 (or his weekly wage, whichever is lower). Yikes! However, if your firm's finances are relatively healthy, getting a bigger pay-off is indeed an option worth exploring. Also, ask for a few extras to be thrown in, such as your company car, laptop or mobile phone. Often, firms will be reasonably generous with extra benefits, goods and services, simply so that you'll go without a fuss! 2. Register at your local JobCentre at once As soon as you hear that the game is up, visit or call your local JobCentre straight away. Although you can't receive benefits for any period for which you've received pay in lieu of notice, you can get the ball rolling on your search for work. Make sure that you find out exactly what benefits you are entitled to (see Entitled To, an independent advice website), such as: Unfortunately, with the exception of JobSeeker's Allowance (if you've paid enough National Insurance contributions), most State benefits are means tested. This means that your entitlement will reduce or cease if you have sizeable savings or a working partner. After registering as unemployed, be sure to keep your regular signing-on appointments and to attend all job interviews on offer. If you don't co-operate, your benefits may be terminated. 3. Try to stretch out your redundancy payment Don't take risks with your money when you're out of work. Deposit your redundancy cheque in a Best Buy high-interest easy-access savings account, and try to eke it out for as long as you can. Aim to earn at least 5% a year before tax. Don't be duped into investing in any other financial products by ambulance-chasing financial advisers! 4. Cut your spending Desperate times call for desperate measures, and there are few things more worrying that bills flooding in while you don't have an income. Start by learning to budget and tackle your debts using the advice in our Get Out of Debt centre. Also, don't start paying off your debts with your redundancy money until you've established whether you have payment protection insurance (PPI). You may have PPI covering the repayments on your mortgage, personal loans and credit cards, so check carefully before you do anything. Look for details of "mortgage payment protection insurance", "credit card repayment protection" and "personal loan protection" on credit agreements, statements and any other correspondence from your lender. Also, make paying your mortgage or rent your number-one priority: read How To Avoid Losing Your Home. 5. Plan your search for work – and work hard at it You'd think that everyone would be doing this, wouldn't you? However, some people are slow to react in a crisis, while others welcome the break from the everyday routine. However, procrastination and foot-dragging can turn a drama into a crisis, so it pays to draw up a strategy Get organised by tidying up your CV – I found a one-page, short-and-sweet curriculum vitae was incredibly effective in grabbing the attention of potential employers ("less is more"). Keep records of every job interview, call and application letter to prospective employers, because your personal adviser in the JobCentre will need to see proof of your search for work. Also, explore alternatives to returning to full-time work, such as working part-time, re-training for a new career, further education, going into business, starting a family or retiring early. 6. Get help from the Foolish community Friendly Fools on our discussion boards are waiting to provide you with advice, sympathy and support. You'll find these boards useful when you're out of work: And once you're back in work, strengthen your finances by trimming your expenses, staying out of debt and building up an emergency fund or nest egg. If redundancy strikes again, you'll be able to tackle it with renewed confidence! Finally, don't be too frightened, because good things can emerge from bad situations. For instance, I was boring myself to death as a marketing manager in financial services. Then, I volunteered to leave my job and, after about seven months, finally found my dream job here at the Fool, where I've been very happy for the last 2¼ years! More: Find a better Savings account | How To Cope With Financial Disasters.