Statutory Redundancy Pay Weekly Cap: What the 2026 Limit Means
Understand the statutory redundancy pay weekly cap, the 2026 UK limit, and how the cap changes the figure used in a redundancy calculation.
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The statutory redundancy pay weekly cap is one of the most important parts of the whole calculation. It limits the weekly pay figure used to work out the statutory minimum, even where the employee actually earns much more.
This is why high earners are often surprised by how low the statutory figure looks compared with their real salary.
What the weekly cap is in 2026
GOV.UK says that for dismissals on or after 6 April 2026, the statutory weekly pay cap is GBP751. It also says the maximum statutory redundancy pay is GBP22,530.
That means if the employee’s real weekly pay is above GBP751, the statutory calculation still uses GBP751, not the higher actual amount.
Why the cap exists
Statutory redundancy pay is a legal minimum, not a promise to replace full earnings. The cap is part of that design. It limits employer exposure for the statutory floor while still giving employees a structured age-and-service-based entitlement.
The cap matters most when:
- service is long
- the employee is in the 41-and-over age band
- actual weekly pay is well above the cap
How the cap affects the calculation
The formula still uses age and service in the normal way:
| Age band | Weeks for each full year |
|---|---|
| Under 22 | 0.5 |
| 22 to 40 | 1 |
| 41 and over | 1.5 |
But once the weekly pay figure is capped, the result cannot rise with actual salary beyond that legal limit.
Worked example
Suppose an employee:
- is 44
- has 8 full years in the 41-and-over band
- earns GBP1,050 a week
Statutory weeks:
8 x 1.5 = 12 weeks
Weekly pay used:
GBP751, not GBP1,050
Statutory redundancy:
12 x GBP751 = GBP9,012
Without understanding the weekly cap, an employee might wrongly expect the result to be GBP12,600.
Does the cap affect enhanced redundancy?
Not necessarily. The statutory cap controls the statutory minimum. If an employer offers enhanced redundancy under a contract, policy, or negotiated package, that extra amount may be based on different rules.
This is why it is important to ask whether the figure you have been shown is:
- statutory only
- enhanced contractual redundancy
- or part of a wider exit package
How to check whether the cap was applied properly
Use the Redundancy Pay Calculator and compare it with the employer’s written breakdown. In particular, check:
- whether the dismissal date is after 6 April 2026
- whether weekly pay above GBP751 was correctly capped
- whether the right age band was applied to each year
- whether service was capped at 20 years where necessary
Frequently Asked Questions
What is the statutory redundancy pay weekly cap in 2026?
For dismissals on or after 6 April 2026, GOV.UK states that the statutory weekly pay cap is GBP751.
Does the weekly cap mean high earners get less redundancy pay?
It means high earners do not get a higher statutory figure just because their real weekly pay is above the cap. The statutory minimum uses the capped weekly amount.
Is the weekly cap the same thing as the maximum redundancy payment?
No. The weekly cap limits the weekly pay figure used in the calculation. The maximum redundancy payment is the top statutory outcome once all the rules are applied.
Does the weekly cap affect notice pay too?
Not in the same way. Notice pay is a separate issue and depends on the contract and other termination rules, not the statutory redundancy cap itself.
The Bottom Line
The statutory redundancy pay weekly cap is one of the biggest drivers of the final statutory number, especially for higher earners. In 2026, the key figure on GOV.UK is GBP751 a week for dismissals on or after 6 April 2026. Use the Redundancy Pay Calculator to see how that cap affects your own estimate.