§ Mr. CohenTo ask the Secretary of State for Employment what was the maximum level of the award for unfair dismissal in the year that it was first introduced; what is the equivalent amount upgraded for inflation since that time; and what is the current maximum award.
§ Mr. Michael ForsythCompensation for unfair dismissal usually consists of a basic and a compensatory award. The compensatory award, introduced in 1972, was then limited to 104 weeks' pay or £4,160, equivalent to £27,606 today when uprated by the retail prices index, whichever was the less. The current limit is £11,000. The basic award, introduced in 1976, was subject to a maximum limit of £2,400, equivalent to £8,611 today. The current limit is £6,150.
§ Mr. CohenTo ask the Secretary of State for Employment what plans he has to increase the maximum level of the award for unfair dismissal; and if he will make a statement.
§ Mr. Michael ForsythMy right hon. Friend the Secretary of State is considering the results of the 725W consultation exercise in connection with the annual review of these awards and will announce the outcome in due course.