New statutory limit on a week’s pay increases to £719 from 6 April 2025
A revised set of statutory rates and limits came into effect on 6 April 2025, including an increase in the cap on a week’s pay for redundancy calculations, which now stands at £719.
These updated figures apply to all relevant redundancy dismissals going forward. As a result, long-serving employees who are made redundant may now be entitled to a maximum statutory redundancy payment of £21,570—up from £21,000 in the previous financial year.
The statutory maximum compensatory award for unfair dismissal has also seen an increase to £118,223. This is the maximum amount which employers can be required to pay in the context of a successful unfair dismissal claim, where the employee’s yearly earnings exceed this figure.
In addition to changes affecting redundancy and unfair dismissal awards, there have also been increases to other key statutory entitlements including injury to feelings award bands, national minimum wage limits, statutory maternity and paternity payments, and statutory sick pay provisions.