Should I spend to reduce personal outgoings?

Hello,

TL;DR Should I use my savings to get rid of my car I only got in September 2025 to keep my head above water? Or should I start doing cash-in-hand deliveries?

I've been signed off my work since early December with mental health/stress issues. My step-son had a major organ transplant last year and my boss was beyond lacking in understanding and put me on a PIP (performance improvement plan) by the end of last summer. Our working relationship is entirely broken and I don't see myself going back anytime soon.

My partner receives maximum disability and we usually get about £300 UC. I expect this will go up but we're not sure yet until our statement comes in later this month.

From this month (March 2026) my pay will now be reduced to 50%.

Whilst not working it is clear I don't need my own car and we're fine with one car. However my negative equity will see me pay about £1500 just to get rid of the car I got in September 2025. My car payment is £365 per month on HP.

My monthly outgoings including my car are £1940. My income is going from £3125 to about £1800 with the 50% pay based on calculations on deductions changing. Thus I'm not going to be able to afford my bills. However if I pay to get rid of my car I'll be keeping my head just above water.

I have about £2500 in savings currently.

I'm currently on a path to being qualified in a different career but I won't be qualified until June 2028.

I've been applying for other jobs related to what I do now but as we're all aware the jobs market is brutal and AI is really reducing jobs in my IT space.

I'm also considering doing cash-in-hand deliveries to pay for my car and get some extra cash.