Am I entitled to redundancy pay?
Yes if you're an employee with at least two years' continuous service and it's a genuine redundancy. Statutory redundancy pay depends on your age and length of service: half a week's pay for each full year under 22, one week's pay for each year aged 22–40, and one and a half weeks' pay for each year aged 41+. Service is capped at 20 years, and "a week's pay" is your average weekly earnings over the 12 weeks before notice. From 6 April 2026 a week's pay is capped at £751, making the maximum statutory payment £22,530. Statutory redundancy pay is tax-free up to £30,000. You may lose the entitlement if you unreasonably refuse suitable alternative work. In short: yes, with two years' service in a real redundancy.
📋 The rules
- Must be an employee with 2+ years' service
- Half / one / one-and-a-half weeks' pay per year by age band
- Service capped at 20 years
- Week's pay capped at £751; max £22,530 (Apr 2026)
- Tax-free up to £30,000
🔓 Exceptions
- Lost if you unreasonably refuse suitable alternative work
- Excluded: Crown servants, armed forces, police, share fishermen
- Lay-off/short-time can trigger a claim after 4+ weeks
⚠️ Penalties & fines
The figures are your entitlement. From 6 April 2026 the cap is £751 a week, giving a maximum statutory payment of £22,530 (20 × £751 × 1.5); anything above £30,000 in a total package is taxable. You have six months from the job ending to claim. Where an employer proposes 20+ redundancies at one establishment within 90 days, collective consultation applies (at least 30 days for 20–99 roles, 45 days for 100+); failure can trigger a protective award of up to 90 days' gross pay per employee. Beware a myth: "everyone made redundant gets a payout" is false — there's nothing statutory below two years' service, and the £751 is a cap on the weekly figure, not a flat sum. To claim: use the GOV.UK redundancy calculator, and if your employer won't pay, apply to an employment tribunal within six months.
📎 Official sources
❓ Frequently asked
Who is entitled to statutory redundancy pay?
Employees with at least two years' continuous service with the same employer, who are made genuinely redundant, are entitled to statutory redundancy pay. The self-employed, contractors, and those with under two years' service generally aren't. You also keep the right only if you don't unreasonably refuse a suitable offer of alternative work.
How is redundancy pay calculated?
It's based on your age and full years of service: half a week's pay for each year worked under 22, a full week's pay for each year aged 22 to 40, and one and a half weeks' pay for each year aged 41 or over. Service is capped at 20 years, and a week's pay is capped at £751 from 6 April 2026.
What's the maximum redundancy payment?
From 6 April 2026, with a week's pay capped at £751 and service capped at 20 years, the maximum statutory redundancy payment is £22,530. Your employer may offer more under a contractual or enhanced scheme, but they can't pay less than the statutory amount. Statutory redundancy pay itself is tax-free.
Is redundancy pay taxed?
Statutory redundancy pay is tax-free. More broadly, the first £30,000 of a qualifying redundancy or termination package is free of income tax and National Insurance. Anything above £30,000 is taxable in the normal way. Payments for work done, notice or holiday are taxed separately and don't benefit from the £30,000 exemption.
Can I lose my redundancy pay?
Yes, in some situations. If your employer offers you suitable alternative work and you turn it down without a good reason, you can lose your entitlement to statutory redundancy pay. You may also have no statutory claim if you have under two years' service, or fall into an excluded category such as armed forces or police.
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