How do I use my redundancy pay for a startup?

Treat your redundancy package as your first angel investment. Statutory redundancy is capped at £700 per week for service after April 2024, but many corporate packages are significantly higher. Use this liquidity to cover personal burn for 3-6 months while building a prototype. Don't waste it on fancy branding; spend it on market validation and lean technical builds.

Should I incorporate immediately after leaving?

Wait until you have a validated idea. Registering with Companies House costs as little as £50 and can be done in hours, but it starts your administrative clock. Focus on customer discovery first. If you have a viable product or need to sign commercial contracts, that is the signal to formally incorporate and set up your equity structure.

Can I claim benefits while starting a business?

You may be eligible for Universal Credit or the New Enterprise Allowance if you are starting a business. However, your redundancy pay counts as capital. If you have over £16,000 in savings, you generally won't qualify for means-tested benefits. Always report your change in circumstances to the DWP immediately to ensure you stay compliant while transitioning to self-employment.

How do I protect my IP if I developed the idea at my old job?

Check your previous employment contract for 'invention assignment' clauses. Most UK contracts state that work done during office hours or using company resources belongs to the employer. To avoid legal debt, ensure your startup's core IP is built on entirely new code or distinct concepts developed after your official termination date to ensure a clean chain of title.

What is the best way to find a co-founder right now?

Look at the colleagues who were also made redundant. You already have a track record of working together under pressure. Statistics show that roughly 20% of founders find their partners through former workplaces. If you lack a technical or commercial mirror, leverage UK founder networks like Entrepreneur First or On Deck to find vetted partners with complementary skills.

No job, need a path — Just left work

Made redundant

The job's gone. The skills aren't. Turn the next 90 days into a real founding decision.

From payout to playbook

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First customer plan

Turn your old network into design partners and first revenue.

Company & IP

Get the company, contracts and IP set up properly from day one.

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Is the idea worth your redundancy cheque?

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Pitch

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First customers from a network you already have.

Convert ex-colleagues, suppliers and clients into paying buyers.

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A real company by month two, not month nine.

Site and email that carry the weight your old job title used to.

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“The best time to start a company is when you have nothing to lose.”

— Paul Graham, Co-founder

Voluntary redundancy

You took the package. Now you've got the runway most founders never get. Use your lump sum to fund your departure from the corporate machine. We build the product while you leverage your sector experience to scale.

Redundancy windfall: You have a lump sum, providing 6-12 months of runway, a luxury most founders only dream of.
The drift trap: The challenge is to avoid complacency and use this window to find a 'real bet' instead of drifting.
Launchpad strategy: Your bold move is to treat your redundancy package as a strategic budget for a focused launch.

Is using redundancy pay to start a business tax-efficient?

The first £30,000 of a redundancy payment is typically tax-free in the UK. This provides a clean injection of capital into your new venture.

End of contract

Contractor between gigs. Use the gap to start, not just to bridge.

Contractor Between Gigs: Currently between contracts, you possess a strong skill set in scoping, delivering, and pricing projects.
The Billable Hours Trap: Your income is directly tied to billable hours, meaning you don't yet have a product that generates earnings passively.
Leverage Your Contract Gap: Use your next contract gap to ship a repeatable product or service.

Is it better to focus on a new contract or my startup idea?

Split your week but prioritize the venture. Securing a new contract often takes 4-6 weeks of effort.

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Made redundant

From payout to playbook

Idea pressure-test

Runway plan

Brand & site

First customer plan

Company & IP

Operating cadence

Pressure-test it in an hour

Four jobs Grower does for you

Is the idea worth your redundancy cheque?

A pitch the people who let you go would invest in.

First customers from a network you already have.

A real company by month two, not month nine.

Voluntary redundancy

Is using redundancy pay to start a business tax-efficient?

End of contract

Is it better to focus on a new contract or my startup idea?

Got questions? Let's get specific.

FAQs

Ready to move?

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