UK unemployment fell to 4.7% in June to August 2026, the Office for National Statistics reported on 20 October, but job vacancies dropped to 691,000, a five-year low, and payrolled employees are 111,000 lower than a year ago. In plain terms: fewer people are out of work than in the spring, but if you do lose your job, there are fewer openings to move into. With the Autumn Budget on 28 October, this is a good week to know your own numbers, starting with what statutory redundancy pay would actually give you.
What the October jobs figures show
The ONS labour market bulletin published on 20 October contains good news and a warning in the same release:
| Measure (UK) | Latest | What it means for you |
|---|---|---|
| Unemployment rate, Jun–Aug | 4.7% | Down 0.1 points on the quarter |
| Vacancies, Jul–Sep | 691,000 | Down 21,000 on the quarter, 37,000 on the year |
| Payrolled employees, Aug 2026 | −111,000 y/y | Fewer people on payrolls than a year ago |
| Claimant Count, Sep 2026 | 1.701 million | Up on the month and the year |
| Regular pay growth, Jun–Aug | 3.7% | Only 0.8% above CPI inflation |
Source: ONS, Labour market overview, UK: October 2026.
Pay is only just keeping ahead of prices. Regular pay grew 3.7%, and CPI inflation for September came in at 3.5% the following day, driven by fuel. Our breakdown of September's inflation shows what that costs a typical household.
The honest reading: the job market isn't collapsing, but it has become harder to move. That makes it worth knowing, before anything happens, what money you would have to fall back on.
Tool 1: your statutory redundancy pay, calculated
If you've worked for your employer for at least two years, the legal minimum is based on your age during each full year of service, according to GOV.UK:
- Under 22: half a week's pay per year
- 22 to 40: one week's pay per year
- 41 and over: one and a half weeks' pay per year
Weekly pay is capped at £751 for redundancies on or after 6 April 2026, and service is capped at 20 years, so the most anyone can receive is £22,530. Here is what that looks like for three illustrative examples:
| Illustrative example | Weekly pay | Weeks owed | Statutory pay |
|---|---|---|---|
| Age 29, 5 years' service | £520 | 5 | £2,600 |
| Age 45, 12 years' service | £650 | 14 | £9,100 |
| Age 58, 25 years' service | £900 (capped at £751) | 28.5 | £21,403.50 |
Our calculations using the GOV.UK rules. The 45-year-old has 8 years at age 33–40 (1 week each) and 4 years at 41–44 (1.5 weeks each). The 58-year-old's last 20 years count: 3 years at 1 week and 17 at 1.5 weeks. Your contract may pay more.
Five years in a job at 29 buys you about five weeks. That is the number most people never look up until the meeting is in the diary.
If the number above looks small
With vacancies at a five-year low, the gap between a redundancy cheque and the next payslip can be longer than expected. Layoff-Ready: The Income Shock Playbook helps you plan for that gap before you need to.
- Work out your bare-bones monthly number and how many months your savings and any payout really cover.
- Decide in advance which bills to pause, cut or protect, so you aren't deciding in a panic.
- Follow a first-week and first-month checklist if an income shock does happen.
100% digital PDF. Nothing is shipped, no shipping fees. Download right after purchase, then print it or use it on your phone, tablet or computer. One-time purchase.
Tool 2: the safety-net checklist
- ☐ Check your contract for enhanced redundancy pay and your notice period. Notice pay is separate from redundancy pay.
- ☐ Know the tax rule. Statutory and contractual redundancy pay up to £30,000 is normally free of Income Tax; notice pay and holiday pay are taxed as normal.
- ☐ Know your benefit floor. New Style Jobseeker's Allowance, based on your National Insurance record, currently pays up to £95.55 a week if you're 25 or over (up to £75.65 under 25) for up to 182 days. That's about £2,484 over six months at the higher rate. Universal Credit may also be available depending on your household.
- ☐ Write your bare-bones budget now. Rent or mortgage, council tax, energy, food, transport, phone. That number, not your current spending, is what your savings need to cover.
- ☐ Keep holiday pay in mind. Untaken holiday should be paid when you leave.
- ☐ Watch the Budget on 28 October for changes to taxes, benefits or employment support. Our Autumn Budget household checklist and the UK money calendar list the dates.
Tool 3: five questions to ask if your role is at risk
If your employer announces a consultation, these questions help you get facts rather than rumours. Ask them calmly, in writing if possible, and keep the answers:
- "Is my role formally at risk, and how was the selection pool decided?"
- "Will redundancy pay follow the statutory minimum or an enhanced company scheme? Can I see the calculation?"
- "What is my notice period, and will it be worked or paid in lieu?"
- "How much untaken holiday will be paid out, and on which payslip?"
- "Are there suitable alternative roles I can apply for, and is there a trial period?"
Each answer changes your safety-net number. A payment in lieu of notice, for example, can add several weeks of income on top of statutory redundancy pay, and holiday pay can add more. Write each figure next to your bare-bones budget so you can see, in months, how long you're covered. If anything feels unclear or unfair, Acas offers free, confidential advice on consultation and selection.
Tool 4: three things to do this week
- Put your own figures into the redundancy rules above. It takes five minutes and turns a vague worry into a number.
- Add one month to your emergency fund target. Fewer vacancies can mean longer searches. Our guide to how much emergency fund you need helps you set it.
- Update your CV while you're calm. The 30-day layoff money plan has a full checklist.
For free, impartial help, MoneyHelper and Citizens Advice can talk you through redundancy, benefits and debts, and Acas explains your employment rights. If news about jobs is making you anxious, talking to someone you trust or a professional can help more than another late-night scroll.
Facing cuts at a big employer? Our Barclays job cuts redundancy timeline walks through consultation, notice and final pay week by week.
FAQ
What is the UK unemployment rate in October 2026?
The latest ONS figure, published on 20 October 2026, is 4.7% for June to August 2026, the lowest since the three months to July 2025.
How much statutory redundancy pay will I get in 2026?
Half, one or one and a half weeks' pay per full year of service, depending on your age in each year, with weekly pay capped at £751 and service capped at 20 years. The maximum is £22,530.
Is redundancy pay taxed in the UK?
Redundancy pay up to £30,000 is normally tax-free. Notice pay, holiday pay and wages owed are taxed as usual.
Sources
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Educational content only. Not personalised financial advice.