Benefits You Can Claim if Resigning from a Job

A recent study commissioned by Unum UK revealed that nearly one-fifth of the UK workforce plans to look for new jobs in 2023, igniting concerns about a Great Resignation 2.0.

This comes after a historic wave of resignations in 2021, where workers voluntarily quit their jobs at unprecedented rates, affecting 85% of UK businesses.

In fact, the Chartered Institute of Personnel and Development (CIPD) forecasts a significant job exodus into 2023, with over 6.5 million people planning to quit their jobs in the next 12 months, marking an increase from the previous year.

Employee with a box of belongings after resignation

It’s not hard to see why. Resigning from a job, be it for personal or professional reasons, often leads to greater opportunities. The UK has provisions that may ensure a safety net, offering various benefits you may be eligible for upon resigning.

Our guide digs into the benefits you can claim and the process of quitting your job in the UK gracefully, ensuring a smooth transition.

What Benefits Am I Entitled to If I Resign from My Job?

You may not be entitled to any benefits for quitting your job. Eligibility to claim certain benefits after resigning from a job may depend on the circumstances of your resignation, such as having a sound reason for leaving your employment.

That said, here are some benefits you may be eligible for after resigning from your job:

New Style Jobseeker’s Allowance (JSA)

New Style JSA is designed to provide financial support while looking for new employment.

  • Unemployed or working less than 16 hours a week on average.
  • Paid enough National Insurance contributions over the last two to three years.
  • Apply online at or by calling Jobcentre Plus.
  • In Northern Ireland, apply online at NI Direct or call the Department for Communities.
  • Varies based on age, e.g., up to £59.20 per week if you’re 18 to 24, up to £74.70 per week if you’re 25 or over​.

New Style Employment and Support Allowance (ESA)

New Style ESA is meant for adults facing limitations in working due to illness, disability, or health conditions.

  • Have an illness, disability, or health condition that limits work capability.
  • Paid or credited with enough National Insurance contributions in the last two to three years.
  • Needs National Insurance number and details of previous employment for application.
  • A 13-week assessment phase applies to all new claimants.
Additional Info
  • Can be claimed on its own or alongside Universal Credit​.

Universal Credit

Universal Credit helps with living costs, suitable for those on low income or out of work.

  • Aged 18 or over (some exceptions for 16- to 17-year-olds).Under State Pension age.Have £16,000 or less in savings.
  • Monthly payment to help with living costs.
  • Replaces several other benefits and tax credits, making the process simpler.

Pension Credit

If you are retraining at 50 for a new job, you may need more time to be ready for the Pension Credit. Pension Credit is for people over State Pension age, providing extra income for those struggling financially.

  • Guarantee Credit: Tops up weekly income if it’s below £173.75 (single) or £265.20 (couple).
  • Savings Credit: Extra money if you’ve saved towards retirement.
  • Over State Pension age.
  • Income less than £220 a week (individual) or £320 a week (couple) may qualify for additional benefits.
  • Can lead to other benefits like council tax discounts and free TV licences for those over 75​.

How to Resign from a Job

Resigning from a job requires a balanced approach to ensure you’re not jeopardising any benefits or future employment opportunities.

Close up on letter of resignation

It’s more than just a courtesy; it’s about securing your financial stability and maintaining a good professional reputation. Here are some steps to ensure a smooth transition.

Know Your Rights and Obligations

Understand your employment contract: Familiarise yourself with any terms regarding notice periods, severance pay, and other departure-related conditions.

Check your eligibility for benefits: Before handing in your notice, know what benefits you might be eligible for and the implications your resignation could have on them.

Communicate Professionally

Have a conversation: Schedule a meeting with your employer to discuss your intention to resign before providing a formal notice.

Provide a written notice: After the meeting, provide a formal written notice adhering to the notice period stipulated in your contract.

Prepare Financially

Have a financial plan: Ensure you have enough savings or another job lined up to cover your living expenses during the transition.

Budget for a possible waiting period: Some benefits may have a waiting period before they kick in; ensure you’re financially prepared.

Seek Professional Advice

Consult a benefits advisor: Get professional advice to maximise your benefits claim and ensure a smooth transition.

Review with legal counsel: If your departure involves complex issues like redundancy or disputes, it’s wise to consult with legal counsel.

Maintain Professional Relationships

Stay positive and cooperative: Fulfill your remaining obligations, offer to help with the transition, and avoid speaking negatively about your employer or colleagues.

Request a reference: Before you leave, ask for a reference from your employer that will benefit your future job search.

Additional Resources

Utilise online guides: Resources like the guide provided by Citizens Advice offer valuable insights on what to consider when resigning.

Attend job fairs and networking events: This can help open doors to new employment opportunities and provide insights into the job market.

Financial Safety Net After a Resignation

You may decide to leave work and resign for numerous reasons, be it personal or financial. However, we caution employees considering a resignation to carefully consider their financial situations before taking such a step. Primarily, make sure you have a safety net to ensure you can meet your daily financial obligations without a steady source of income.

While benefits are an option, it may take some time until you receive them. During this period, it would be wise to tap into savings to help cover necessary expenses. It is advised to have enough money in your savings to cover at least three to six months of expenses and necessities.

Applying for a payday loan

If you find yourself running short on cash before receiving benefits, online payday loans may also be a short-term, last-resort alternative. Short-term loans can be used to cover emergency expenses when all other options have been exhausted. While they can offer fast, small-sum funding, short repayment periods and high interest rates can be risky.

Sum Up

Resigning from a job is a significant step. Being informed about the benefits you can claim when resigning from the job and understanding the process can provide a sense of security during this transitional period. The UK has systems to support individuals in such situations, ensuring you can navigate through this phase with a cushion of support.

FAQ on Quitting Your Job in the UK

We know that sometimes our readers still have questions when they reach a blog’s end. That’s why we like to include a FAQ section to clear up any nagging curiosities.

Can I Claim Universal Credit if I Quit My Job?

If you resign, your Universal Credit might be reduced for around three months or longer, known as a sanction, if the Department for Work and Pensions (DWP) determines you didn’t have a good reason for resigning​.

How Soon Can I Claim Benefits if I Resign?

You can claim benefits as soon as you know the date you’re stopping work, provided you have a good reason for resigning​.

What is a “Good Reason” For Resigning if I Want to Claim Benefits?

A “good reason” to resign would typically be circumstances beyond your control that make it unreasonable to expect you to continue working, such as being asked to work in unsafe conditions, a medical condition, or caring responsibilities. Getting advice from a benefits specialist or a legal advisor before resigning is advisable if you plan to claim benefits.

Can I Claim Multiple Benefits at the Same Time?

Yes, some benefits can be claimed concurrently. For example, New Style ESA can be claimed alongside Universal Credit. However, the amount you receive from one benefit might affect the amount you get from others. Using a benefits calculator or consulting with a benefits advisor is advisable to understand how claiming multiple benefits might work.

How Do I Know Which Benefits I’m Eligible For?

Eligibility depends on various factors, including financial situation, age, health condition, and employment status. Online benefits calculators on websites like can help determine what benefits you could claim. Consulting a benefits advisor or visiting your local Jobcentre Plus can provide personalised advice.

What if My Circumstances Change After I’ve Started Claiming a Benefit?

You must report any changes in your circumstances to the relevant benefits office, as they could affect the amount you receive. This includes finding a job, changes in your health condition, or changing your financial situation.

Is There a Waiting Period Before I Start Receiving Benefits?

The waiting period can vary between different benefits. For instance, Universal Credit may have a waiting period of up to five weeks from the date of claim. You must check the specific waiting periods for each benefit you claim and plan your finances accordingly.

Can I Appeal a Decision if My Benefits Claim is Denied?

Yes, you can appeal if you disagree with a decision about your benefits. The process may involve asking for a reconsideration of the decision and appealing to an independent tribunal if unsatisfied. It’s advisable to seek legal advice if you decide to appeal a benefits decision.

Can I Quit My Job?

Yes, you can quit your job, but consider the implications, such as your eligibility for certain benefits and future employment opportunities. Having another job lined up or a financial plan to manage the interim period is advisable.

Can I Claim Benefits if I Leave My Job Due to Stress?

Yes, you may be able to claim benefits like New Style Employment and Support Allowance if you leave your job due to stress or other health conditions that affect your ability to work. It’s advisable to consult a healthcare professional and a benefits advisor to understand your options.

I am Being Made Redundant. Can I Claim Benefits?

Yes, if you are made redundant, you may be able to claim certain benefits like Universal Credit or New Style Jobseeker’s Allowance. Your eligibility will depend on your circumstances, such as your financial situation and whether you’ve paid enough National Insurance contributions.