Question 1

How is statutory redundancy pay calculated in the UK?

Accepted Answer

Statutory redundancy pay is calculated by working backwards through your years of service and applying a multiplier based on your age during each year: 0.5 weeks' pay for years worked under age 22, 1 week's pay for years between ages 22 and 40, and 1.5 weeks' pay for years worked aged 41 and over. Service is capped at 20 years. Weekly pay is capped at £751 per week from 6 April 2026. You must have at least 2 years of continuous service to qualify.

Question 2

What is the weekly pay cap for redundancy pay in 2026?

Accepted Answer

The weekly pay cap for statutory redundancy pay is £751 per week from 6 April 2026. This cap is reviewed each April. The maximum statutory redundancy payment you can receive is £22,530. If your weekly pay exceeds the cap, the cap figure is used in the calculation instead.

Question 3

Is redundancy pay taxable?

Accepted Answer

The first £30,000 of your total redundancy payment — combining statutory and any enhanced amount — is tax-free and exempt from National Insurance. Amounts above £30,000 are taxed as income at your marginal rate but are not subject to NI. Notice pay (PILON) and accrued holiday pay are always taxable as normal earnings and sit entirely outside the £30,000 exemption.

Question 4

How long do I have to claim redundancy pay?

Accepted Answer

You have 6 months less one day from your dismissal date to make a redundancy pay claim to an Employment Tribunal. For unfair dismissal claims the deadline is shorter — 3 months less one day. Before filing any tribunal claim you must notify ACAS to start Early Conciliation, which pauses the deadline clock for up to 12 weeks.

Question 5

What should I do if my employer has offered less than my statutory entitlement?

Accepted Answer

If your employer's offer is below your statutory redundancy entitlement under the Employment Rights Act 1996, you can write to them disputing the figure and requesting the correct amount within 14 days. If they do not respond or refuse, you can contact ACAS to start free Early Conciliation before filing an Employment Tribunal claim. You do not need a solicitor to do this, though independent legal advice is recommended if a settlement agreement is involved.

Question 6

Do I need to sign a settlement agreement?

Accepted Answer

No — you are never legally required to sign a settlement agreement. A settlement agreement is a legally binding contract in which you waive your right to bring Employment Tribunal claims in exchange for a payment. Before signing, you must receive independent legal advice from a qualified solicitor. Many solicitors offer a free or fixed-fee consultation for settlement agreement reviews. Do not sign without taking that advice.

Check whether your redundancy offer is fair.

See the important numbers for free.

Everything you need,
nothing you don't.

Check whether your redundancy offer is fair.

See the important numbers for free.

Everything you need,nothing you don't.

Everything you need,
nothing you don't.