Luton: what their redundancy policy pays
Sourced from Luton's own published policy, retrieved 2026-08-19.
Luton's own policy
Published as Luton Borough Council Pay Policy Statement 2026-2027.
Luton's policy states: 1.5 x statutory weeks up to 104 weeks. This is calculated on your actual weekly pay, not the statutory weekly pay cap. The policy caps discretionary compensation at 104 weeks' pay.
"Where a redundancy payment is made, it is calculated on the basis of 1.5 weeks gross pay for every complete year of local government service up to a maximum of 104 weeks. This calculation applies equally across all pay grades."
Like every local authority, Luton 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: Luton Borough Council Pay Policy Statement 2026-2027, retrieved 2026-08-19.
A note on this figure: 'Gross pay' language indicates actual pay basis rather than the statutory capped week's pay.
A note on these figures: the policy details below are published fromLuton'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.
Luton'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.
Luton's own policy adds: For LGPS members made redundant at 55 or later, early access to pensionable benefits is available based on service and salary; the council has a policy of not enhancing pension benefits under its discretion.
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 Luton
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 Luton'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 Luton'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.