The April 2026 Redundancy Pay Cap Increase Explained

What changed on 6 April 2026?

The government reviews the statutory weekly pay cap each April under the Employment Rights (Increase of Limits) Order. From 6 April 2026, the cap increased from £719 to £751 per week.

This cap sets the maximum weekly pay figure used in statutory redundancy pay calculations, regardless of actual earnings. The change increases both the potential entitlement for affected employees and the maximum statutory redundancy payment that any employee can receive.

The new maximum payment

The maximum statutory redundancy payment is calculated as: 20 years of service × 1.5 weeks (the highest age band multiplier) × the weekly cap.

From 6 April 2026: 20 × 1.5 × £751 = £22,530

The previous maximum (at £719) was £21,570. The increase is £960.

Who is affected by the change?

The cap affects employees whose weekly earnings exceed the cap figure — currently anyone earning more than £39,052 per year (£751 × 52). If your weekly pay is below £751, the cap does not affect your calculation either way.

For those earning above the cap, the increase from £719 to £751 means each week of redundancy entitlement is worth £32 more than under the previous rules. For someone with 15 years of service and an age band that gives them, say, 18 weeks of entitlement, the increase is worth £576.

Which cap applies to you?

The relevant cap is determined by your last day of employment — not the date you were told about the redundancy, and not the date your employer calculates or pays the amount.

• Dismissal date before 6 April 2026: the £719 cap applies
• Dismissal date on or after 6 April 2026: the £751 cap applies

If your last day of employment was 5 April 2026, the old cap applies. If it was 6 April 2026, the new cap applies. One day's difference.

This matters particularly for employees who were notified of redundancy in late March but whose employment formally ends in April. Agreed end dates can sometimes be adjusted — see our guide on whether you can negotiate your redundancy package.

The history of cap increases

The weekly pay cap is adjusted annually in line with the Retail Prices Index, rounded to the nearest whole pound. Recent values:

| Tax year | Weekly cap | Maximum SRP | |----------|-----------|-------------| | 2023/24 | £643 | £19,290 | | 2024/25 | £700 | £21,000 | | 2025/26 | £719 | £21,570 | | 2026/27 | £751 | £22,530 |

The 2026/27 increase of £32 (4.4%) reflects above-average RPI over the preceding period.

Does the cap affect the fairness of the statutory scheme?

The cap is a policy choice — not a measure of what is actually fair. For lower and middle earners, statutory redundancy pay provides meaningful protection. For higher earners, the gap between statutory entitlement and actual financial loss grows substantially.

An employee earning £100,000 a year has the same statutory cap as an employee earning £40,000. The statutory payment does not reflect their salary — it is capped at the same £751 per week. This is one reason why negotiating enhanced redundancy pay (or understanding contractual enhanced terms) matters more for higher earners.

See our guide on is my redundancy offer fair? for how to check whether what you have been offered reflects the correct statutory figure — and whether there is scope to do better.

What this means if you are currently going through redundancy

If your last day of employment falls on or after 6 April 2026, use the £751 weekly cap in your calculation. Our calculator applies the correct cap automatically based on your dismissal date.

If you received a calculation from your employer that uses the old £719 figure but your last day falls in the 2026/27 tax year, you may be owed additional money. The difference is calculable and claimable.