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UK MONEY CHECKLIST

Your Income Has Dropped: What to Do Next

A practical UK checklist for an income drop: protect essentials, update your budget, check support and contact providers about unaffordable payments.

Last reviewed: 6 October 2026. General UK information; support eligibility and suitable payment arrangements depend on individual circumstances.

A reduction in hours, a lost job, illness or quieter self-employed work can change your budget quickly. You do not need to solve every money problem at once. Start with what needs attention today, then put the next month into numbers. This checklist gives you an order to work through; your circumstances may need individual advice.

If essentials are at risk today

If you cannot afford food or energy, or your housing is at risk, seek help now. Do not wait until you have completed a budget. Use the support route finder for local support and free advice routes, and tell the relevant provider what has changed.

1. Confirm the money and dates you can rely on

List expected take-home payments and their dates: wages, benefits already awarded, and any other confirmed income. Check a final payslip or changed working-hours arrangement with your employer if the amount is unclear. If you work for yourself, distinguish invoices raised from money you expect to receive, allowing for business costs and tax.

Keep unconfirmed benefits, prospective sales and possible side-hustle earnings separate. Check what accessible savings you have, but record them as a finite buffer rather than recurring income. Pension savings are different from available cash.

2. Work out the new monthly position

Use the monthly budget calculator with the new expected income. Include housing, energy, groceries, essential travel and other commitments. If income varies, explain that uncertainty in any conversation about affordable payments.

For a wider picture, the Money MOT brings spending, savings and debts together. A monthly shortfall is a signal to seek support and review payments; it is not solved by a spreadsheet alone. Our irregular-income guide can help you plan around uneven payments.

3. Check support and changes to existing benefits

Use the benefits and support route finder to identify checking routes. GOV.UK lists independent calculators for estimates, with important limitations. An estimate is not an award or a guarantee. Have accurate household information ready and check the relevant service’s rules.

If you already receive benefits, check with the service paying them how to report your changed circumstances. If you are unsure whether a calculator suits you or what a change would mean, ask an adviser. Northern Ireland has its own benefits information and Finance Support routes; the finder includes these.

4. Contact providers before payments become unmanageable

Make a list of upcoming bills, due dates and any arrears. MoneyHelper’s bill prioritiser helps identify which payments need attention first. Priority depends on the consequences of missing a payment, not simply which debt charges the most interest.

Tell providers or lenders that your income has changed, explain what you can afford and ask what support is available. Keep a record of the conversation and any agreement. Avoid cancelling essential payments without understanding the consequences. Our bills and debt-help guide links to free help; seek debt advice if you have arrears or cannot cover essentials.

5. Reduce flexible costs without removing essentials

Review subscriptions, discretionary purchases and unused services. Check cancellation terms before making changes. For groceries, use the weekly meal planner to plan around food you already have and enter your own shopping costs. A partially priced list is not a complete budget.

Use the extra-money tool to explore realistic savings or extra income. Keep a one-off sale separate from recurring earnings. Additional work can involve costs, tax and changes to benefits; check those before relying on a projected amount.

6. Review again in a week

Check which contacts you have made, whether applications need more information and which payment dates are approaching. Update the budget when confirmed income changes. If a provider’s proposed payment remains unaffordable, say so and get advice rather than accepting an arrangement you cannot maintain.

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Sources and review