Lewisham: what their redundancy policy pays

Lewisham's own policy

Published as LGPS 2014 Scheme Discretions Policy Summary (reviewed April 2017).

Lewisham's policy states: statutory weeks x actual weekly pay (uncapped week's pay), reduced by any pension strain cost where an immediate unreduced pension is payable. This is calculated on your actual weekly pay, not the statutory weekly pay cap.

"In addition to a statutory redundancy payment...the Council will pay compensation as follows: 1) ...compensation...equivalent to the difference between the statutory payment and the statutory payment that would have been paid had it been based on the employee's actual weekly pay. 2) ...compensation...based on the number of weeks pay the employee is entitled to under the statutory scheme multiplied by the employee's actual weekly rate of pay."

Like every local authority, Lewisham 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: LGPS 2014 Scheme Discretions Policy Summary (reviewed April 2017), retrieved 2026-08-19.

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.

Lewisham'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.

Lewisham's own policy adds: Flexible retirement considered for employees aged 55+ on the merits of the case. Where redundancy compensation is payable and the employee becomes entitled to immediate unreduced pension, the compensation is reduced by the capital cost to the Council of releasing pension benefits early (strain cost); no compensation payable under that head if the strain cost exceeds it.

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 Lewisham

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 Lewisham's own policy and the statutory minimum add up to on their own, so you can see what a settlement offer is actually adding.