statutoryredundancypay.co.uk
Does this apply to you?ScotlandNorthern IrelandEnhanced top-upAfter taxNotice payHoliday payHistoric yearVoluntary offerAt-risk letter30-day consultationAm I eligible?
Rule · ERA 1996 s.166

Insolvent employer: claim from the NI Fund

If your employer enters administration, liquidation or bankruptcy and cannot pay your statutory redundancy, the Secretary of State steps in. You claim from the National Insurance Fund via the Insolvency Service.
Action required
File the online RP1 claim within 6 months of the date the insolvency practitioner (IP) confirms the role is redundant. Late claims are at the Secretary of State's discretion. Full instructions at gov.uk insolvent employer.

What is payable from the NI Fund

The Secretary of State's payment under ERA 1996 s.166 covers:

  • Statutory redundancy pay in full, capped at the £751 statutory weekly limit (2026/27).
  • Unpaid wages for up to 8 weeks, capped at £751/week.
  • Statutory notice pay for the unworked portion of statutory minimum notice, capped at £751/week.
  • Accrued holiday pay for up to 6 weeks.

Anything above the statutory caps (enhanced top-up, bonus, contractual notice over statutory minimum) is not paid from the NI Fund. It joins the queue of unsecured creditors in the insolvency.

How long it takes

The Redundancy Payments Service aims to pay within 3 to 6 weeks of receiving a complete RP1 claim and verification from the insolvency practitioner. Complex cases (TUPE situations, missing payroll records) take longer.

Northern Ireland equivalent

Claims via the Department for the Economy (NI) rather than the Insolvency Service. Same forms and caps; different administering body.

Read next
Full package modellerWeekly pay capNotice pay calculatorHoliday pay calculatorAt-risk letter received
Reviewed by Oliver Wakefield-Smith, Founder of Digital Signet. Last verified 23 June 2026. Inline citations link to primary statute at legislation.gov.uk.