THE BITTER winds of recession are blowing a GALE across Britain, tossing thousands out of work and buffeting the jobless count to well over TWO MILLION.

While most WON'T lose their jobs, in current economic climes almost everyone should be aware of the lottery effect . . . it could be YOU.

So think how you would be affected and start contingency planning now. This checklist works where the redundancy ghost is stalking and where it's already hit.

REDUNDANCY ON THE HORIZON?

SADLY, the out of work aren't desirable customers. It's much tougher to get decent deals, so sort things out while you can still list your employment.

Debts are cheaper now. Try to move debts to cheaper rates. Your credit score's much worse when unemployed.

Check car insurance. The unemployed often pay more, so switch to a cheap policy asap. See www.moneysavingexpert.com/carinsurance

Use savings. If you've got spare cash, clear any cards or loans- overhanging debts in redundancy are hellish and cost far more than interest on any savings earns. Yet keep access to emergency funds.

Budget! Scour your finances to see which bills you can cut. There's a free planner at www.moneysavingexpert.com/budgeting

Up your income. Grab easy cash from selling old mobiles or flogging your CD collection.

Mortgage rescue. Check if help will be available, and whether it benefits to get a scheme to pay the home loan interest, or defer it via a new Government scheme. See www.moneysavingexpert.com/mortgagearrears

Payment protection insurance (PPI). PPI policies cover specific monthly repayments if you lose your job, eg mortgages or loans. Sadly, some have been subject to near systemic mis-selling, but that doesn't mean they're all bad. Just study terms carefully and use specialist insurers charging a fraction of banks' policies.

But beware-if redundancy is imminent when buying a policy it could be void and thus a waste of money.

This could even include announcements of future company job losses that DON'T include you. So always check first.

It isn't just about finances, though.

Trade unions. If your company has a union, it could barter for better redundancy packages on your behalf, and give free rights guidance: www.worksmart.org.uk/unionfinder

Network and cultivate contacts. It may be time to push at other doors. Yet weigh up losing redundancy payouts and remember you have fewer employment rights in the early stages of a new job than when you're a long-serving staffer.

BEEN MADE REDUNDANT?

THERE'S often psychological pressure when you're hunting for another job and relationship strains if money gets tight, so bear in mind the old adage: "It's your job that's been made redundant, not you."

Most importantly your employer MUST treat you fairly, both financially and in its choice of who goes. If not, compensation could be due.

You're entitled to ALL the following:

To be given fair notice. If there's nothing in your contract, the minimum's a week for each complete year (up to 12), although pay may be given in lieu of notice.

Holiday pay. If you've paid holiday left, you're entitled to a cash equivalent or to use it in your final weeks.

Redundancy. This is compensation for loss of work and the first £30,000 is tax-free.

Many companies have generous policies-check your contract/staff handbook for them. If not, there's a legal MINIMUM which applies if you've worked for the same company for two years. Otherwise, you've got no right to cash.

Under 22-Half-a-week's pay for every year's continuous service

Aged 22-40-A week's pay per year.

Aged 41 and over-One-and-a-half week's pay.

Yet it's not your age NOW but during each year worked that counts.

Imagine a 45-year-old man worked at the same firm for eight years. For the years he was under 41 he only gets a week's pay for each. There's a calculator at www.berr.gov.uk However, pay is allowed to be set at a maximum £350 a week, even if you earn more.

If your firm's gone bust you still get this via its insolvency practitioner from what's called the National Insurance Fund. This isn't just for statutory redundancy pay, but also unpaid wages and holiday pay, though here the max £350-a-week rule applies to ALL.

Free redundancy rights advice available from ACAS on 0845 7474747 or www.citizensadvice.org.uk .

Once you're not working, there is money out there to help. Check if you can get benefits at www.entitledto.com and sign-on asap. And if you've got urgent financial issues, Crisis and Budgeting interest-free loans can be applied for at Job Centres or www.dwp.gov.uk

Outrageously, some Job Centres are short of cash, so it's a postcode lottery to whether you'll get them.

Losing your job can have a silver lining though. You could be eligible to reclaim bank charges immediately, bag training and education grants and more. Full lists at www.moneysavingexpert.com/redundancy .

Your questions answered

Q I'LL be 60 in July and would like to take my state pension and save it for three years for when I intend to retire.

I've read another route to benefit is deferring taking it, but it's so complex I'm totally confused? JUNE, by email

A CHATTING recently with Paul Lewis, presenter of Radio 4's Money Box, he told me an old saying: "Only two people understand the State Pension, yet one's now dead, and the other's not so sure he really does get it". So you're not alone.

Deferring can increase your pension pot. You can either take a bigger pension later where, for every year you delay, you get roughly 10% extra pension when you start claiming.

Alternatively, you can take the extra as a one-off lump sum once you eventually start taking the pension. This is made up of the deferred payments plus compounded interest at 2% above base rate. After that, you just receive the standard pension.

As a rule of thumb, the bigger annual pension's better if you live longer, the lump sum if not. Sadly no one can tell you how likely that is.

Q IS it true that, after time, your student loan gets wiped if you've always had a low income? VICKY PARTRIDGE, by email

A IN a nutshell, with official student loans, the answer's yes.

For loans in recent years, you only pay 9% of everything earned above £15,000, so if you don't earn that, you don't repay.

In earlier years it worked differently, but there was always a threshold below which you didn't need to contribute.

The loan is only wiped if you become permanently unfit or die (in other words it ISN'T part of your estate).

Your debt's also cleared at a certain age, though this depends on when you started higher education. For some it's 50, for others it's 65, else it can be 25 years after you were due to start repaying. Check your exact situation with the Student Loans Company.

Questions for publication to notw@moneysavingexpert.com

TV Money Guru Martin Lewis is the creator of the Consumer Revenge website www.MoneySavingExpert.comwhich is packed with info on how to get more money in your pocket.

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