Weekly pay is capped at £751 (Great Britain) or £783 (Northern Ireland) regardless of actual earnings, and only the most recent 20 years of service count. Maximum statutory redundancy pay is £22,530 (GB).
You need at least 2 years' continuous service to qualify for statutory redundancy pay. Some employers offer enhanced (contractual) redundancy pay above the statutory minimum.
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The figure above is an estimate of what you're entitled to or what it costs you — deciding what to actually do with it (invest, overpay debt, top up a pension) is a bigger decision worth getting right.
Received a redundancy payout: understand tax-free thresholds and how to make a lump sum work for you long-term.
Planning parental leave: budget around the drop from full pay to statutory rate, and check what protections apply.
Deciding whether to overpay a student loan: for many people investing the surplus outperforms early repayment — but it depends on your plan type and income trajectory.
Reviewing pension contributions: small percentage changes compound significantly over a career.
An FCA-regulated independent financial adviser can model your specific numbers — free directories like Unbiased.co.uk match you with a local IFA.
It's based on age, length of service (capped at 20 years) and weekly pay (capped at £751 in Great Britain for 2026/27): 0.5 weeks' pay per year under 22, 1 week per year aged 22–40, and 1.5 weeks per year aged 41+.
What is the maximum statutory redundancy pay?
For 2026/27, the maximum is £22,530 in Great Britain (20 years × 1.5 weeks × £751 cap), or higher in Northern Ireland using its own £783 weekly cap.
Do I qualify for statutory redundancy pay?
You generally need at least 2 years of continuous service with your employer to qualify, and must be an employee (not self-employed or a contractor) made genuinely redundant.
Is redundancy pay taxed?
The first £30,000 of redundancy pay (statutory and any enhanced contractual amount combined) is usually tax-free; amounts above £30,000 are subject to Income Tax (but not National Insurance).