UK redundancy pay weekly cap 2026
From 6 April 2026, the Great Britain statutory redundancy weekly pay cap is £751, with a maximum statutory payment of £22,530. Earlier dates in the previous limits window used £719 weekly and £21,570 maximum.
Why the weekly cap bites
Statutory redundancy multiplies weeks by capped weekly pay. If you earn above the cap, the surplus does not increase the statutory lump sum. That surprises senior staff who estimate using full salary.
Why the overall maximum exists
The overall maximum is essentially 20 × 1.5 × the weekly cap. You approach it with long service concentrated in the 41+ band while already at the weekly cap.
How to avoid date mistakes
Enter the correct redundancy/effective date in calculators. A date one day either side of 6 April can change the cap table. Employers sometimes use a different “relevant date” concept — ask which date they used.
Northern Ireland reminder
NI limits are separate. This article’s sterling figures are the GB consumer headline numbers for 2026.
Estimate
Redundancy pay calculator · method guide: How statutory redundancy is calculated. Verify on GOV.UK.
Official sources to keep open
Bookmark the primary official pages for your jurisdiction and re-check them whenever caps or bands change. Calculator sites (including this one) lag legislation if maintainers miss an update.
- GOV.UK — redundant employee rights
- GOV.UK — redundancy pay calculator
- Citizens Information — redundancy (Ireland)
- GOV.UK — Stamp Duty Land Tax
- Revenue.ie
Limits cited from the 2026 Increase of Limits context used in our rate sheet (verified 14 July 2026).
Disclaimer
This article is general information for consumers in the UK and Ireland. It is not legal or tax advice and is not a substitute for advice on your facts. See our Disclaimer.
Planning around the April change
Redundancy announced before April, ending after
The relevant date for limits is not always the announcement date. Clarify with HR which date they will use for the statutory calculation and why.
Multiple entities in a group
Transfers between group companies can reset or preserve continuity depending on the facts. Caps still apply to the statutory math once continuity and service are fixed.
Enhanced policies referencing “the statutory cap”
Some handbooks multiply a company formula by the statutory weekly cap. When the cap rises in April, enhanced pay may rise too — read the policy wording carefully.
Common mistakes
- Using today’s cap for a redundancy date in a previous limits year.
- Ignoring Northern Ireland or Ireland when the contract is not GB English/Welsh/Scottish.
- Treating a calculator output as a binding legal determination.
- Forgetting notice pay, holiday, and enhanced policy lines on the settlement statement.
- Entering net pay instead of the gross weekly figure the statute expects.
- Skipping the official GOV.UK or MyWelfare cross-check before challenging HR.
When to get personal advice
Seek tailored advice if you face discrimination issues, pregnancy or disability-related redundancy selection concerns, unpaid wages, insolvency, or pressure to sign a settlement agreement quickly. Free first-line help may be available from Citizens Advice (UK) or Citizens Information (Ireland); a solicitor or union can advise on your documents.
Keep copies of your contract, handbook redundancy policy, payslips covering the reference period, and every email about the consultation process. Those documents matter more than any blog article when numbers are disputed.