UK redundancy guide · reviewed 23 September 2026
Statutory vs enhanced redundancy pay
Statutory redundancy is the legal floor. Enhanced redundancy is whatever your employer adds above it. The gap between those two numbers is often the most useful starting point for understanding an offer.
For redundancies in Great Britain on or after 6 April 2026, statutory redundancy uses a weekly-pay cap of £751, a maximum of 20 years' service and a maximum award of £22,530. Northern Ireland uses different statutory figures.
How statutory redundancy is worked out
For eligible employees, statutory redundancy pay is based on age during each year of service, completed years of continuous service and weekly pay up to the statutory cap.
The usual age bands are half a week's pay for each full year under 22, one week's pay for each full year from 22 to 40, and one and a half weeks' pay for each full year aged 41 or over.
- Normally requires at least two years of continuous employment.
- Only up to 20 years of service are counted.
- For Great Britain redundancies on or after 6 April 2026, weekly pay is capped at £751 and the total statutory award at £22,530.
What enhanced pay changes
An employer can use a more generous multiplier, your actual salary rather than the statutory weekly cap, a different service rule, or a separate lump sum.
That enhanced element may be contractual, policy-based or offered for a particular redundancy programme.
Do not compare redundancy pay in isolation
A company package can look generous on redundancy pay but be less attractive once notice, holiday, bonus, benefit end dates and tax treatment are included.
Compare the whole package and its estimated net value, not just the redundancy line.
Turn the package into a number you can use
DunDunSee™ separates the moving parts of a redundancy package, estimates take-home and helps translate it into financial runway.
Open DunDunSee™