What is the redundancy cap for 2026/27?

In Great Britain the statutory redundancy cap is £751 a week for dismissals on or after 6 April 2026 (ERA 1996 s.227, set by SI 2026/310). With service capped at 20 years and at most 1.5 weeks per year, the maximum statutory redundancy payment is £22,530. In 2025/26 the cap was £719 a week (maximum £21,570).

Is the redundancy cap different in Northern Ireland?

Yes. Northern Ireland sets its own limit under the Employment Rights (Northern Ireland) Order 1996. For 2026/27 it is £783 a week, giving a maximum statutory payment of £23,490. Scotland and Wales use the Great Britain cap of £751.

Does the redundancy cap apply to notice pay or a protective award?

No. ERA 1996 s.227(1) applies the cap to statutory redundancy pay and to the basic and additional awards for unfair dismissal. Statutory notice pay and the protective award for failing to consult collectively are calculated on your actual gross weekly pay.

Rule · ERA 1996 s.227

The £751 weekly pay cap

The single most important number in the formula. If your gross weekly pay exceeds £751, the calculation uses £751 per week instead.

Redundancy cap 2026/27 · dismissals from 6 April 2026

Weekly cap (GB)

£751

Was £719 in 2025/26

Maximum payment (GB)

£22,530

20 yrs × 1.5 wk × £751

Northern Ireland

£783

Maximum £23,490

Sources: SI 2026/310 (Great Britain: England, Scotland and Wales) and the Employment Rights (Increase of Limits) Order (NI) 2026. Run your own figures in the redundancy pay calculator or the NI calculator.

What the cap is, in one sentence

From 6 April 2026, statutory redundancy is calculated using a weekly pay figure no greater than £751 (ERA 1996 s.227). If you earn £1,200 a week gross, the calc still uses £751.

Why the cap exists

The cap is a deliberate Parliamentary choice to keep the statutory minimum predictable and to limit employer liability. It is not a definition of fair compensation. Many employers top up with enhanced schemes precisely because the statutory cap is below the typical UK median wage.

When the cap changes

The Secretary of State must review the cap each year and lay an Order under section 34 of the Employment Relations Act 1999. New rates take effect from 6 April. The September Retail Prices Index (RPI) figure drives the uprating (RPI is the index named in the statute, not CPI). If the September RPI is lower than the previous September's, section 34(2) requires the limits to fall by the same percentage, rounded to the nearest whole pound. Every Order since 2014 has been an increase.

For 2026/27 the cap rose from £719 to £751, a 4.5% increase, made by the Employment Rights (Increase of Limits) Order 2026 (SI 2026/310). The full Order can be cross-checked against the GOV.UK statutory limits collection.

Other places the cap applies

The same s.227 cap applies to the basic and additional awards in unfair dismissal claims. It does NOT apply to the protective award for failure to consult collectively under TULRCA 1992 s.189(4) (s.227 does not list it, so a week's pay there is uncapped), nor to statutory notice pay (a week's pay for notice is uncapped; you get your actual weekly gross), nor to enhanced schemes that use uncapped pay.