Can you survive on State Benefits?

1,310 jobs cut at Centrica..will they survive on State benefits?

The Centrica-owned British Gas today announced that they would be making 1,310 job cuts. This is following a loss of 6% of all its UK customers this year (which is almost a million clients).

According to The Times newspaper today, the gas and electricity supplier has reported record losses of £143 million. Centrica has “promised” to make its first reduction in gas and electricity bills in five years.

So while British Gas customers can look forward to cheaper utility bills next year, what are the 1,300-odd Centrica employees whose jobs will be axed?

Being told that you are at risk of being made redundant is not good at any time. Being told just before Christmas is even worse timing.

With only around 23% of all homeowners actually having some form of payment protection insurance, it looks like a lot of these employees will be surviving on State benefits. While State benefits vary according to an individual’s circumstances, Jobseekers Allowance is typically around £57.45 a week if you are aged 25 or over.

And if you need help with paying your mortgage, the State will only help with interest payments on mortgages of up to £100,000. However, if you took your mortgage after October 1995, you will have to wait for nine months until you are eligible for help.

So would you be able to cope financially if your Boss told you today that you were being made redundant?

What has happened to the British Gas employees is happening all over the UK, all the time. The solution is to take out some form of payment protection insurance.

For homeowners, mortgage payment protection insurance (MPPI) can cover both interest and capital repayment elements of the mortgage, together with other mortgage outgoings like premiums for endowment or household insurance.

For people who rent who do not have a mortgage, income protection insurance will give you a monthly income which you can use to cover any expenses.

Protection specialists BritishInsurance.com offer low cost MPPI and income payment protection insurance and you can also opt to have extra cover which will pay out if you cannot work due to having an accident or long-term sickness.