Its a shame when small businesses treat their staff in this way, and from reading all the above it isn't clear to me whether the owner understand his legal responsibility to you as an employer or not.
At the end of the day, if he is terminating your job through redundancy he is obliged to tell you this in writing, to provide you notice that he is doing this, and to provide you with some compensation.
Regarding notice, you are due a minimum of seven weeks notice because of your period of service - or more if your contract of employment specifies more than 7. He must either give you 7 weeks notice in writing and ask you to work the period of notice or pay you the money in lieu.
Regarding redundancy payments, the minimum payments are defined in law but he could chose to pay you more.
The amount you receive is dependent on you age - see here.
http://www.dti.gov.uk/employment/employment-le gislation/employment-guidance/page15686.html#W hat_are_the_payments
Note that the 'weekly amount' is currently capped at �310 pw - it is this figure that a decent employer will sometimes waive in calculating the severance.
I suggest you ask for a meeting and make specific notes on what is said. Ask directly whether you are being made redundant by your present employer, or whether you are being transferred by the new employer, in which case your employment rights are preserved under TUPE. If they are transferring you, ask about arrangements will apply for the extra distance to travel. They are not obliged to offer you anything, but then they are obliged to offer you redundancy terms.