City of London: what their redundancy policy pays
Sourced from City of London's own published policy, retrieved 2026-08-19.
City of London's own policy
Published as Pay Policy Statement 2026/27.
City of London's policy states: 1.5 x statutory weeks. This is calculated on your actual weekly pay, not the statutory weekly pay cap.
"Using the statutory 'ready reckoner' to determine the statutory entitlement in weeks, the City of London Corporation currently bases the calculation of redundancy pay on 1.5 x actual salary x statutory weeks."
Like every local authority, City of London 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 2026/27, retrieved 2026-08-19.
A note on this figure: Pay Policy Statement states the current formula is 1.5x the statutory weeks figure applied to actual (uncapped) salary; no separate maximum-weeks cap stated. It also notes a separate discretionary compensation policy under the 2006 Regulations is published on the Corporation's website but was not separately located.
A note on these figures: the policy details below are published fromCity of London'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.
City of London'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.
City of London's own policy adds: Staff in the LGPS who retire from age 55 onwards can elect immediate payment of pension benefits on a reduced basis; early retirement with immediate pension is also possible on redundancy/business-efficiency dismissal from age 55
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 City of London
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 City of London'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 City of London'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.