Compare · Year-on-year
2025 vs 2026 rates
The 6 April 2026 uprating added £32 to the weekly cap and £960 to the maximum statutory payment. The 4.5% increase tracked the September 2025 RPI figure, with no discretionary topping-up.
Headline change
| 2025/26 | 2026/27 | Change | |
|---|---|---|---|
| Weekly cap | £719 | £751 | +£32 (+4.5%) |
| Total cap | £21,570 | £22,530 | +£960 (+4.5%) |
| £30k threshold | £30,000 | £30,000 | unchanged |
Worked example: age 50, 20 years, £900/wk gross
Bands: 9 years at 1.5 wk + 11 years at 1 wk = 24.5 weeks. Weekly cap is below £900 in both years.
- 2025/26: 24.5 × £719 = £17,615.50
- 2026/27: 24.5 × £751 = £18,399.50
- Difference: +£784 for the same worker, same role, terminating one day later
When the new rate bites
The 6 April 2026 cap applies to dismissals with a relevant date on or after 6 April 2026 under ERA 1996 s.227. A termination dated 5 April 2026 uses the £719 cap. An at-risk letter dated 1 March 2026 with a termination on 30 April 2026 uses the £751 cap.
RPI driver
Annual uprating is benchmarked to the September Retail Prices Index (RPI) figure from ONS (ons.gov.uk), the statutory index named in section 34 of the Employment Relations Act 1999. September 2025 RPI was 4.5%, which drove the uprating without further adjustment. (CPI for the same month was 3.6% and is not the statutory measure.)
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