Statutory Redundancy Pay – Private Members’ Bill seeks to link increases with average earnings

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The text of Lindsay Hoyle MP’s Private Members’ Bill was published on 9 March, in advance of its second reading debate and vote on 13 March. It was approved by 85 votes to 17 and proceeds now to the Committee stage.

The Bill is short and, if it became law, would require the Secretary of State to make regulations, within 12 months of the day the Act comes into force, that would link the calculation of statutory redundancy pay (SRP) to average weekly earnings, and review the rate in line with average earnings each year. Consideration would also be given for the annual increase to be based on the higher of average earnings and the RPI.

The Bill makes no reference to a one-off increase in the current SRP ceiling from its current level of £350 per week. Such an increase is already provided for in the Work and Families Act 2006, although the government has not yet used the facility.

Further information:
Statutory Redundancy Pay (Amendment) Bill

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