§ Mr. Wigleyasked the Secretary of State for Employment what would be the figure to which the maximum payment of £3,600 under the Employment Protection (Consolidation) Act 1978 would have to be increased to maintain its purchasing power at present day prices.
§ Mr. Patrick MayhewI assume that the hon. Member is referring to the maximum redundancy payment payable under schedule 14 paragraph 8 (1) (c), of the Employment Protection (Consolidation) Act 1978, as amended by the Employment Protection (Variation of Limits) Orders 1978 and 1979. This payment is calculated on a weekly earnings limit which is subject to annual review and which was last increased on 1 February 1980 from £110 to £120. Under schedule 4, paragraph 3, of the Act the maximum redundancy payment is for 20 years' service at 1½ weeks' pay subject to the limit of £120, that is £3,600. If the maximum were now to be increased in line with the increase in the retail prices index from February to June 1980 it would rise by 7 per cent. to £3,850. The Government will be reviewing the limits again in the autumn.