Sefton: what their redundancy policy pays

Sefton's own policy

Published as Discretionary Powers Policy Statement 2023.

Sefton's policy states: up to 104 weeks' actual pay. This is calculated on your actual weekly pay, not the statutory weekly pay cap. The policy caps discretionary compensation at 104 weeks' pay.

"An actual weeks pay will currently be used in the calculation of Redundancy and Compensation payments using up to a maximum of 20 years' service. Discretion to award lump sum compensation of up to 104 weeks in cases of redundancy."

Like every local authority, Sefton 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: Discretionary Powers Policy Statement 2023, 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.

Sefton'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.

Sefton's own policy adds: Members aged 55 and over who retire on redundancy or grounds of efficiency have entitlement to immediate payment of unreduced benefits (LGPS Regulations 2013 reg 30(7)); flexible retirement and 85 Year Rule considered case by case.

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 Sefton

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