Hardly a day passes at the moment without yet another announcement of job losses. As the recession starts to bite, the number of people officially out of work is fast approaching 2 million.

Being made redundant is a major life event and it is vital to prepare for this possibility. You should consider how to save around six months' worth of income to fall back on if need be and also consider insuring yourself against a loss of income.

However, if you have unfortunately already found yourself out of work now is the time for saving money and making sure you receive all the benefits, allowances and tax credits which you are entitled to. Here is a quick summary of the main benefits but more detailed information can be found at the Government's own site at www.direct.gov.uk.

• Jobseeker's Allowance is the main benefit for the unemployed. To qualify, you must be actively seeking work, be under the state pension age and either not working or working less than 16 hours a week. The allowance will be paid for up to 182 days and there are two types of JSA, contribution-based (depends on how much you have paid in National Insurance Contributions) and income-based (for those who have not made NI Contributions, and is based on income and savings).
• The New Deal Programme is designed to give people on benefits the help and support they need to look for work, including training and preparing for work. There are different programmes for various age groups and others.
• Income Support is designed for those who cannot work full-time. You may be eligible if you are aged 16 to 59 and you are a lone parent, sick or disabled, or you care for someone who is sick or elderly - but you cannot have savings of more than £16,000, or work more than 16 hours a week. The amount you receive varies depending on your age and circumstance.
• If you are entitled to Income Support or income-based Jobseeker's Allowance you could also get up to a 100 per cent reduction on your Council Tax Bill. You will not normally qualify if you have more than £16,000 in savings.
• Tax credits are payments from the Government. If you are responsible for at least one child or young person who normally lives with you, you may qualify for Child Tax Credit. If you work, but earn low wages, you may qualify for Working Tax Credit - even if you have no children. The amount varies depending on individual circumstances.
• Finally, if you are out of work and need financial help to pay all or part of your rent, you may be able to get Housing Benefit. You will not be eligible if you have savings of more than £16,000.