I think your scenario (about stress) is very plausible.

If you mean "recourse" as in "legal remedy", well, if the redundancy has been properly handled (which is likely) only redundancy pay and the award is calculated on age and duration of service - but a local authority will probably be paying more than the minimum.

If it has not been properly handled (and I'd have to think about how the Equality Act fed into the equation - it definitely applies in the field) then you have a shot at an unfair dismissal remedy - the compensatory award is calculated like redundancy but there is also a potential compensatory award (which, er, compensates) capped at about £65,000 and given the difficulty you face in getting another job I'd have thought you could have been shooting for big numbers on that.

Have you talked to a lawyer (doh!)?