Southampton: what their redundancy policy pays

Southampton's own policy

Published as Severance & Pensions Payments: Discretionary Powers Policy (Appendix 1 to Pay Policy Statement), reviewed February 2025.

Southampton's policy states: statutory redundancy pay; separate lump sum compensation payments discretionary up to 104 weeks' pay. This is calculated on the statutory weekly pay cap, the same limit used for the basic statutory calculation. The policy caps discretionary compensation at 104 weeks' pay.

"The Council/school will calculate redundancy payments on the basis of actual weeks' pay, capped at the statutory week's pay limit... The Council/school will calculate redundancy payments... subject to such payments not exceeding the equivalent of 104 weeks' pay."

Like every local authority, Southampton 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: Severance & Pensions Payments: Discretionary Powers Policy (Appendix 1 to Pay Policy Statement), 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.

Southampton'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.

Southampton's own policy adds: Employer discretion to 'switch on' the 85 year rule for members voluntarily drawing benefits age 55-60 is not exercised by the Council/school (85-year rule not switched on for that band); flexible retirement benefits from 55 are actuarially reduced unless waived.

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 Southampton

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