Have you ever left work with a pit in your stomach, fearing a future without your job? You’re not alone. In today’s UK economy, the fear of redundancy is very real. One recent survey found that 14% of UK employees feel their job is at risk. Recent Office for National Statistics (ONS) data show the number of UK job vacancies has been sliding, about 717,000 vacancies in July–September 2025, down again for the 39th quarter in a row. At the same time, unemployment is creeping up. In late 2025, the jobless rate hit roughly 5.0% the highest in four years, amid slower wage growth and stubborn inflation. In this environment, even steady professionals are eyeing their paychecks with anxiety.
It’s easy to feel a knot in your stomach seeing headlines about layoffs and hiring freezes. In fact, a recent Acas/YouGov survey found that 26% of British workers worry that artificial intelligence and tech changes will cost them their jobs. That fear isn’t unfounded: big tech is cutting thousands of roles. Amazon, for example, confirmed it would lay off 14,000 corporate workers as it restructures. Even outside Silicon Valley, major companies like Nestlé and UPS have announced heavy cuts. In short, no one wants to imagine losing their income, but right now the threat of redundancy is real for many UK workers.
High-Risk Sectors in the UK
Certain industries are taking the brunt of recent job losses. Here are some of the sectors most exposed to current economic headwinds:
● Tech and IT: Automation and cost-cutting are hitting tech firms hard. Pandemic-era growth has reversed, with companies like Amazon, Microsoft, and Google cutting UK staff. Tech graduate roles have declined, and rehire wages are down 40%. Workers in software and IT face cautious hiring as firms shift toward AI efficiencies.
● Retail and Hospitality: The UK high street faced a sharp decline in 2024, with nearly 170,000 retail jobs lost, a 42% rise from 2023, amid the collapse of chains like Homebase and The Body Shop. Retail employment hit record lows, while hospitality sectors like hotels, restaurants, and pubs saw similar losses. ONS data also showed significant job cuts in accommodation, food services, and wholesale, driven by soaring energy costs, higher business rates, and tighter consumer spending.
● Logistics and Transport: Delivery and logistics firms are feeling the pressure too. DPD saw around 1,500 drivers walk out over pay cuts, and with automation on the rise, the future feels uncertain. Even as parcel volumes remain strong, companies are bracing for economic strain, and workers may face reduced hours or pay if demand dips.
● Media and Creative Industries: Media and creative industries are also feeling the squeeze. As ad revenue and subscriptions drop, big broadcasters and smaller outlets alike are cutting staff. Dozens of UK journalism titles have closed, and creative roles from editorial to music and advertising are often the first to go when budgets get tight.
In fact, government data underscore these trends. HM Revenue & Customs (HMRC) payroll data show a net loss of 180,000 UK jobs in the year to October 2025. The largest falls were in retail, hospitality, and IT, exactly the sectors listed above. These losses highlight that even strong industries are not immune: as the Goldstar Recruit analysis of ONS data notes, overall vacancies have collapsed and the market is shifting power back to employers.
The Emotional Toll of Redundancy
Job loss isn’t just about numbers; it’s deeply personal. Imagine your employer announces redundancies. Bills don’t stop, and for many, missing a paycheck sparks a real crisis. Families living paycheck to paycheck worry about food, rent, or school costs. Even those living alone feel the shock of suddenly covering everything on no income.
Beyond money, job loss can shake identity and bring fear. Research shows UK households lose on average 17% of their income in the first year after redundancy, and up to 35% over five years. That’s hundreds of pounds a month lost, putting real pressure on essentials and relationships.
The ONS-backed study reveals UK benefits cover just 20% of lost wages for six months, much lower than the 60–80% typical in Europe. As Dr Selçuk Bedük of Oxford University says, “after a job loss, unemployment insurance is crucial in cushioning immediate income losses.” Without it, families bear the full financial weight
Introducing Redundancy Protection Insurance
This is where redundancy insurance (also called redundancy cover UK) can make a difference. Think of it as a safety net tailored to your career. If you’re a working professional, you might see this product described as “unemployment insurance for professionals” or a “job redundancy policy.” It’s a form of short-term income protection: you pay regular premiums, and if you lose your job involuntarily (through no fault of your own), the policy pays a portion of your salary.
Most redundancy insurance plans cover about 50–70% of your monthly income (tax-free) for up to 12 months. So, if you’re laid off, you still receive reduced income to help with essentials like rent, mortgage, and bills while you search for a new role. Unlike state benefits, which can be delayed and offer only limited support, this type of job loss cover UK is designed to respond quickly and provide more substantial support. It acts as a financial bridge, keeping your household stable when layoffs happen.
While these plans have conditions, like being employed for a set time and actively job-hunting, they offer peace of mind. Rather than draining savings or rushing into a job just to get by, you can take time to retrain or upskill. With the right redundancy cover UK policy, a sudden layoff becomes a challenge you’re ready for, not a crisis.
Protect Your Future with the Best Insurance
At Best Insurance, we understand how distressing redundancy can be. That’s why we offer personalised guidance, helping you find affordable policies that fit your profession and lifestyle. Whether you're in tech, retail, media or beyond, we’ll walk you through your options.
In uncertain times, planning isn’t fear; it’s wisdom. Explore redundancy protection insurance UK today, and give yourself the cushion that can carry you through.
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