Barclays expects to have cut around 5,000 jobs by the end of 2026, about 5% of its roughly 93,000 staff, it said alongside its third-quarter results on 22 October. About 1,000 roles went in the first half of the year, so most of the cuts land between now and Christmas, mainly in operational and functional roles. If you work in a UK bank or any back-office job, the next 90 days follow a legal timeline, and statutory redundancy pay is now capped at £751 a week, up to £22,530.
Barclays' chief executive linked the cuts to years of technology investment, describing artificial intelligence as "the icing" rather than the cake. Pre-tax profit for the quarter rose 12% to £2.3 billion, and the bank said structural cost actions had reached about £600 million for the year. Whatever the reason, for the people in those roles the money question is the same: what happens, when, and how much?
This guide walks through the redundancy timeline step by step. It applies to anyone in Great Britain facing redundancy, not only Barclays staff. For the wider picture, see our look at UK unemployment at 4.7%.
Your redundancy timeline, week by week
| When | What usually happens | Your money move |
|---|---|---|
|
Day 0 Announcement or 'at risk' letter |
You are told your role may be affected. Nothing is final yet. | Pause big purchases and new credit. Save every letter and email. |
|
Days 1–45 Consultation |
If 100+ redundancies are proposed at one establishment, consultation must start at least 45 days before any dismissal (30 days for 20–99). You should also get individual consultation. | Ask how selection works, whether there are other roles, and request a written estimate of your package. |
| Selection | Your employer applies its criteria and confirms who is redundant. | Check your length of service and age are correct: they decide your statutory pay. |
| Notice period | You work or are paid for your notice (contractual or statutory). | Ask whether notice is worked or paid in lieu, and how holiday pay is handled. |
| Final pay | Redundancy pay, notice pay, holiday pay and any bonus. | Check your payslip line by line; statutory redundancy pay under £30,000 is not taxable. |
| Within 6 months | Deadline to claim statutory redundancy pay if your employer hasn't paid. | Diary this date the day you leave. |
Based on GOV.UK guidance for Great Britain. Northern Ireland has different caps (£783 a week from April 2026). Your contract may give more than the legal minimum.
How much is statutory redundancy pay in 2026?
You qualify after two years with your employer. For each full year of service (up to 20), you get:
- half a week's pay for each year you were under 22
- one week's pay for each year you were 22 to under 41
- one and a half weeks' pay for each year you were 41 or older
Weekly pay is capped at £751 for redundancies on or after 6 April 2026, so the legal maximum is £22,530. Here is what that means for three illustrative examples:
| Example | Age · service · weekly pay | Weeks counted | Statutory pay |
|---|---|---|---|
| Customer operations adviser | 29 · 5 years · £620 | 5 | £3,100 |
| Team leader | 46 · 12 years · £900 (capped at £751) | 14.5 | £10,889.50 |
| Senior specialist | 57 · 25 years (20 count) · £1,100 (capped) | 28 | £21,028 |
Our calculations using the GOV.UK rules. Many banks pay enhanced redundancy above the statutory minimum; check your contract or staff handbook.
STATUTORY REDUNDANCY PAY, 3 EXAMPLES
The surprise for many people is how quickly the cap bites. The team leader earns £900 a week but is paid as if she earns £751, so she loses about £149 of value for every week counted. And the payment that looks large on paper often has to cover months, not weeks.
A £10,889 cheque feels like a cushion. Divided by a £2,400 monthly budget, it is four and a half months.
TURN THIS NEWS INTO A PLAN
This is the moment most people feel it: the package is smaller than expected and the bills don't change. A clear plan for the first 30, 60 and 90 days changes everything.
Layoff-Ready: The Income Shock Playbook
- Work out exactly how many months your redundancy pay and savings will last, line by line
- Decide which bills to protect first and which to pause, reduce or renegotiate
- Prepare questions and a checklist for the consultation meeting, so nothing gets missed
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Five questions to ask in your consultation meeting
- "Can I have a written estimate of my full package?" Ask for redundancy pay, notice pay, holiday pay and any bonus as separate lines.
- "Is enhanced redundancy pay available, and how is it calculated?" Banks often pay more than the statutory minimum.
- "What alternative roles are open, and is there a trial period?" You are entitled to be considered for suitable alternative work.
- "Will my notice be worked or paid in lieu?" This affects your final pay date and tax.
- "What happens to my pension contributions, share schemes and health cover?" Get dates for when each stops.
If you are offered a settlement agreement, you must get independent legal advice for it to be valid, and employers commonly contribute to the cost. Acas offers free, impartial guidance on redundancy rights.
Your 90-day money plan
- Week 1: list every fixed bill and its due date; total your essentials.
- Week 2: divide your expected payout plus savings by your essentials to get your runway in months.
- Weeks 3–4: cancel or pause non-essentials; call providers before you fall behind, not after.
- Month 2: check what you can claim, such as New Style Jobseeker's Allowance or Universal Credit, depending on your situation. Our Budget explainer covers what's already set for 2027.
- Month 3: review the plan and adjust; keep at least one month of essentials untouched.
If you want a faster version, our 72-hour money plan for AI layoffs and 30-day plan for an uncertain job market break the first steps down further. If the worry is keeping you awake, talk to someone you trust; free, impartial help is also available from MoneyHelper and Citizens Advice.
Questions people are asking
How many jobs is Barclays cutting?
Around 5,000 by the end of 2026, about 5% of its workforce, with roughly 1,000 already cut in the first half of the year, according to the bank's third-quarter results on 22 October 2026.
What is the maximum statutory redundancy pay in 2026?
£22,530 for redundancies on or after 6 April 2026 in Great Britain, based on a weekly pay cap of £751 and a maximum of 20 years' service.
Is redundancy pay taxed in the UK?
Statutory redundancy pay under £30,000 is not taxable. Notice pay, holiday pay and bonuses are usually taxed as normal pay.
Sources
- GOV.UK, Redundancy: your rights – redundancy pay
- GOV.UK, Redundancy: your rights – consultation
- GOV.UK, Redundancy: tax and National Insurance
- CIPP, Statutory redundancy rates announced for 2026/27
- ITV News, Barclays to cut 5,000 jobs this year as AI makes work more efficient (22 Oct 2026)
- Acas, Redundancy; MoneyHelper, moneyhelper.org.uk
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Educational content only. Not personalised financial advice.