Cheltenham: what their redundancy policy pays
Sourced from Cheltenham's own published policy, retrieved 2026-08-19.
Cheltenham's own policy
Published as Pay Policy Statement 2025-2026.
Cheltenham's policy states: statutory formula, uncapped pay (0.5/1.0/1.5 weeks per year of service by age band, max 20 years service / 30 weeks). This is calculated on your actual weekly pay, not the statutory weekly pay cap. The policy caps discretionary compensation at 30 weeks' pay.
"In line with the statutory redundancy payment scheme, the Council calculates redundancy severance payments... the multiplier for the number of weeks is then applied to the employee's actual weekly earnings. 0.5 week's pay... 1.0 week's pay... 1.5 weeks' pay... The maximum number of weeks' pay for anyone aged 61 years of age or older with 20 years or more service is 30."
Like every local authority, Cheltenham sets this policy under its own discretion (regulation 6 of the 2006 Regulations, below) and can amend it. Read the document itself rather than relying on this summary alone: Pay Policy Statement 2025-2026, retrieved 2026-08-19.
A note on this figure: Statutory age-banded formula but applied to actual (uncapped) weekly pay rather than the statutory weekly-pay cap; council states it does not normally enhance LGPS pension benefits.
A note on these figures: the policy details below are published fromCheltenham's own linked source document and are correct to our knowledge as at 2026-08-19. Treat them as indicative, read the source document for yourself, and check your own offer against it. Read how our figures are checked.
How this compares with the statutory minimum
Every employee with at least two years' service is entitled to statutory redundancy pay regardless of what their employer's own policy says. As at 6 April 2026, that is calculated using a week's pay capped at £751, up to a maximum of £22,530 for 20 years' service at age 41 or over.
Cheltenham's discretionary policy sits on top of that statutory floor, not instead of it: the statutory redundancy payment is calculated first, and the council's own enhancement (above) applies in addition, on the basis stated in its policy document.
LGPS and early pension access
Under regulation 30(7) of the Local Government Pension Scheme Regulations 2013, an LGPS member aged 55 or over who is dismissed for redundancy or business efficiency is entitled to immediate payment of their pension, rather than waiting until normal pension age. This is separate from, and on top of, any redundancy payment above.
Cheltenham's own policy adds: Council does not normally enhance pension benefits for any employee; considers each case on its merits per LGPS Statement of Policy/Discretions
Source: LGPS Regulations 2013 (SI 2013/2356), regulation 30(7). Read the regulations. This does not compute a pension figure; it states the rule only, and does not replace advice from your pension fund.
Settlement agreements at Cheltenham
Where a council wants to agree enhanced terms, confirm the LGPS position, or resolve a related dispute alongside a redundancy, it is often documented in a settlement agreement rather than a plain redundancy letter. A settlement agreement is only legally binding once you have received advice on its terms from a relevant independent adviser such as a solicitor, and your employer is usually required to contribute to the cost of that advice.
Before you sign anything, work out what Cheltenham's own policy and the statutory minimum add up to on their own, so you can see what a settlement offer is actually adding.
Related
Get your redundancy offer reviewed
A relevant independent adviser, such as a solicitor, can check how Cheltenham's offer compares with your statutory entitlement and their own policy before you sign anything. Your employer is usually required to contribute to the cost.