Worried about losing your job?

Britain’s unemployment rate is soaring; with 3,178 people being made redundant every day in the three months to the end of March, according to new figures.

So, what can you do to protect yourself against the inevitable hardship that comes with being out of work?

If you are still working, but are concerned about your job safety, the best idea is to start putting money away in a high-interest savings account now.

Ideally, we should all have savings equal to at least six months of our current salary stashed away in a rainy day fund.

If saving is not an option, one alternative is to take out insurance to protect against losing your job. However, cover of this kind is often criticised for being too expensive and for failing to pay out due to conditions detailed in the small print.

For those already aware they are going to be made redundant, it is well worth knowing your rights. Anyone who has worked for the same employer for two years should get at least statutory redundancy pay, but you may be able to negotiate yourself a better deal.

Visit the Trade Union Congress website (tuc.org.uk) for tips on getting a higher payout.

And don’t forget to contact your mortgage lender as soon as possible if you think you are going to have problems keeping up with your repayments. Banks are always more willing to listen if you get in touch before defaulting.

Finally, don’t despair. There are government benefits such as Jobseeker’s Allowance to keep you going while you look for a new job. And official figures show that 75% of those who sign on are back in the workforce within six months.