Rates · Current year
Statutory redundancy rates 2026/27
Effective from 6 April 2026. Weekly pay cap £751. Maximum statutory payment £22,530. Verify the 2026 Order reference at legislation.gov.uk before quoting in formal correspondence.
The headline numbers
Weekly cap
£751
Up from £719
Total cap
£22,530
20 yrs × 1.5 wk × £751
Service ceiling
20 yrs
ERA 1996 s.162
£30k tax-free
£30,000
Unchanged since 1988
Statute basis
The weekly cap is set under ERA 1996 s.227 and uprated annually under section 34 of the Employment Relations Act 1999. The uprating Order for 2026/27 takes effect from 6 April 2026. Verify the SI 2026 reference at the GOV.UK statutory limits collection before relying on the SI number in formal correspondence.
Which terminations the new rate applies to
The rate is the one in force on the "relevant date", which is the effective date of dismissal. A termination on 5 April 2026 uses the 2025/26 cap of £719. A termination on 6 April 2026 or later uses £751. The date the at-risk letter was issued or notice was served does not determine the rate.
Year-on-year change
The 2026/27 uprating of 4.5% (£719 to £751) tracks the September 2025 CPI figure. The maximum statutory payment rose by £960 as a result.
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