Redundancy in Scottish Trust Deed
Hi there, thanks for reading. Scotland based.
I’ve found out recently I’ll be made redundant, and I’m 1.5 years into my 4 year trust deed. I pay about £600 a month to it.
My £50kish job has made me redundant. I’ll receive a package that includes a non taxable compensation, which is about half the total I’ll receive, and the other half is my notice payment and statutory amount (£1438 as per cap for 2 years service). I’m also on garden leave which means I’ll have an extra month of normal pay before this all kicks in.
My trust deed has informed me they’ll take 100% of the non taxable part, which makes sense, but also that they’ll continue taking deductions every month after I have no job as my notice pay is effectively almost 3 months salary (it’s more like just over 2 months but not completely relevant). I.e., because for 3 months I have what is equivalent to an income, just paid up front in a lump sum, nothing should change.
I feel like the >£1800 that they’ll take from the half that’s left will leave me in a very vulnerable situation facing the job market, and could’ve given me some extra time to secure employment before having absolutely nothing to my name. I’d like to think I’ll get another job in 3 months but I wouldn’t bet all the money I’ll have left that I will.
As I’m in a trust deed, I haven’t been allowed to save - I have nothing outside of my monthly wage and live month to month.
Is there any way to pause my payments until I find a job? Even for a month or two so I can get on my feet? I thought I could stretch the amount left to cover however long until I’m employed again (for example 5 months) rather than treat it like 3 normal months.
I fully understand the trust deed is in place because of my own mistakes, but I’m on track to pay it off early and completely compliant, just a little panicked.
Thanks in advance
Posted Dec 4, 2025, 9:37 PM UTC