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 CPI 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.
CPI driver
Annual uprating is benchmarked to the September CPI figure from ONS (ons.gov.uk). September 2025 CPI was 4.5%, which the Secretary of State accepted as the uprating factor without further adjustment.
Read next