Workers rush to buy redundancy cover as Labour’s unemployment crisis deepens

Policyholders are typically covered for redundancy through accident, sickness and unemployment (ASU) insurance, a type of short-term income protection.

These types of policies provide payments for up to one to two years. Most have exclusions, such as voluntary redundancy or dismissal for misconduct, and there is typically a waiting period before payments start.

Broker Best Insurance said it had received twice the number of unemployment insurance enquiries in the past three months of 2025,compared to the start of last year. Claims among its policyholders also rose over the year, increasing by 180pc between the first and third quarters.

ASU policies vary in cost, but cover worth £1,000 a month typically costs around £50 monthly, the broker said.

Kesh Thukaram, founder of Broker Best Insurance, said demand was no longer limited to people taking out new mortgages or loans.

He added: “We have not seen this kind of jump for a very long time. There is a huge fear of losing jobs, but people are also buying policies because there’s an increasing awareness that they can’t find another job that easily.”

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