Lehman Brothers’ collapse will undoubtedly impact on employment in the City, and possibly beyond. It has been estimated that, in the short term, approximately 5000 jobs will disappear within London and it is likely that for every ten jobs lost in the city, a further seven will be lost in the wider economy.

In addition to this, a survey recently conducted by benefits provider Jardine Lloyd Thompson has found that a third of employees have inadequate savings to prepare themselves for redundancy. JLT suggests that employers need to take more steps to financially educate their employees, particularly given the current economic climate, and that employees should aim to have at least four months’ salary saved, should they find themselves out of work.