The weekly pay cap for statutory redundancy calculations rose to £751 from 6 April 2026 (up from £719), making the maximum statutory redundancy payment £22,530 — set by the Employment Rights (Increase of Limits) Order 2026 under the Employment Rights Act 1996. The Employment Rights Act 2025 (Royal Assent 18 December 2025) also doubled the maximum collective consultation protective award from 90 to 180 days' gross pay per employee, in force from 6 April 2026. The unfair dismissal qualifying period remains two years throughout 2026; ERA 2025 reduces it to six months from 1 January 2027 (subject to confirmation). Updated June 2026.
Source: Employment Rights Act 1996, s.139, s.155–162, s.188–198 (as amended by Employment Rights Act 2025); TULRCA 1992, s.188–198; acas.org.uk/redundancy.
What the law says
Statutory redundancy pay is a minimum legal entitlement for employees with at least two years' continuous service, calculated under Employment Rights Act 1996, sections 155–162. The weekly pay used in the calculation is capped — the cap is reviewed annually and rose to £751 from 6 April 2026.
The Employment Rights Act 2025 received Royal Assent on 18 December 2025. Its redundancy-related provisions that came into force in 2026 are limited to:
- Doubling the collective consultation protective award (from 90 to 180 days' gross pay).
- The general increase in the weekly pay cap that flows from the annual uprating order.
The ERA 2025 did not change the two-year qualifying period for statutory redundancy pay, the redundancy calculation formula, or individual consultation requirements. Source: gov.uk/redundancy-your-rights.
The 2026 statutory redundancy pay figures
| Parameter | Figure from 6 April 2026 |
|---|---|
| Weekly pay cap | £751 |
| Maximum redundancy payment | £22,530 |
| Maximum service counted | 20 years |
| Minimum qualifying service | 2 years |
The £22,530 maximum is reached when an employee has 20 or more years of service, is aged 41 or over for at least 20 of those years, and has weekly earnings at or above the £751 cap (20 × 1.5 × £751 = £22,530).
Source: Employment Rights Act 1996, s.162; Employment Rights (Increase of Limits) Order 2026; acas.org.uk/redundancy.
What changed for collective redundancy in April 2026
Collective redundancy rules apply when an employer proposes to make 20 or more employees redundant at one establishment within a 90-day period (Trade Union and Labour Relations (Consolidation) Act 1992, s.188).
Before 6 April 2026: An employment tribunal could award a protective award of up to 90 days' gross pay per affected employee where an employer failed to comply with collective consultation obligations.
From 6 April 2026: The Employment Rights Act 2025 doubled the maximum protective award to 180 days' gross pay per affected employee. This change applies to dismissals taking effect on or after 6 April 2026.
The collective consultation requirements themselves are unchanged:
- 20 to 99 redundancies: Employer must begin consultation at least 30 days before the first dismissal.
- 100 or more redundancies: Employer must begin consultation at least 45 days before the first dismissal.
- The employer must notify the Redundancy Payments Service using form HR1 before dismissals begin.
- Consultation must take place with elected employee representatives or trade union representatives.
The 180-day protective award is the maximum. Employment tribunals set the award based on the seriousness of the employer's default; an employer that disregards the consultation duty entirely is likely to face the maximum. Source: TULRCA 1992, s.188–198 (as amended by ERA 2025); acas.org.uk/redundancy.
What ERA 2025 does not change in 2026
Several redundancy rights are unchanged by ERA 2025 and remain as they were:
- Qualifying service for statutory redundancy pay: Two years' continuous employment (ERA 1996, s.155). Unchanged.
- The redundancy calculation formula: Half a week's pay per year of service under 22; one week per year aged 22–40; one and a half weeks per year aged 41 and over (ERA 1996, s.162). Unchanged.
- Individual consultation: No statutory minimum period; the employer must genuinely consult each affected employee before the decision is made (ERA 1996, s.98). Unchanged.
- Right to suitable alternative employment: Employers must consider and offer any suitable alternative role; employees have a four-week trial period (ERA 1996, s.141). Unchanged.
- Right to time off to look for work: Employees under notice of redundancy with at least two years' service have a right to reasonable paid time off to look for work (ERA 1996, s.52–54). Unchanged.
Changes coming from 1 January 2027
The following ERA 2025 provisions are expected to come into force on 1 January 2027, subject to confirmation by secondary legislation — check GOV.UK for the latest.
Unfair dismissal qualifying period reduced to six months. The current two-year qualifying period under ERA 1996, s.108 will fall to six months. This matters in a redundancy context because employees dismissed with fewer than two years' service currently cannot bring unfair dismissal claims; from January 2027, they can after just six months.
Fire-and-rehire automatically unfair in most cases. Dismissing an employee in order to re-engage them on worse contractual terms will be automatically unfair under ERA 2025, ss.23–29. A limited exception applies where the employer faces genuine financial distress.
No cap on compensatory award. The statutory cap on the compensatory element of unfair dismissal awards will be removed. The basic award formula (using the £751 weekly pay cap) is unaffected.
For the full detail, see the ERA 2025 changes expected in 2027 guide and the unfair dismissal guide.
Calculate your redundancy pay
Use the free statutory redundancy pay calculator to calculate your minimum entitlement. The £751 weekly pay cap is applied automatically. Enter your age, years of continuous service, and weekly pay — the result is your statutory minimum, before any contractual enhancement.
Frequently asked questions
See the FAQ below. For individual redundancy situations, contact ACAS or call the ACAS helpline on 0300 123 1100. This site calculates statutory minimums only — contractual redundancy pay may be higher.
Back to redundancy rights.