/> If Your Employer Goes Bust (England): How the Government Pays Your Redundancy, Wages and Holiday Pay | The People's Pocket

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Home / Guides / Employer insolvency

When your employer goes bust

The short answerDepending on your situation, you can apply to the government for a redundancy payment, holiday pay, unpaid wages and statutory notice pay. You must apply for redundancy pay within 6 months of being dismissed.

Apply through the Redundancy Payments Service once the insolvency practitioner gives you a case reference number.

Quick facts

Redundancy pay
After 2 years' service
Unpaid wages
Up to 8 weeks
Holiday pay
Up to 6 weeks
Weekly cap
£751 a week
Deadline
6 months from dismissal

What you can apply for

Depending on your situation, you can apply to the government for:

Payments are capped.

Redundancy pay

You’re normally entitled to redundancy pay if you:

Redundancy payments are capped at £751 a week (£719 if you were made redundant before 6 April 2026).

You can get a payment for a maximum of 20 years that you were employed at the business.

Wages and holiday pay

You’re only entitled to money that’s in your employment contract.

You’ll get up to 8 weeks of money you’re owed. It counts as a week even if you’re only owed money for a few days.

You’ll only get payments for up to 6 weeks of holiday days.

When to apply

Apply for redundancy, unpaid wages and holiday within 6 months of being dismissed.

You may be eligible for unemployment benefits if you lose your job. If you do not apply for benefits after you lose your job, you might get less money in your statutory notice pay payment.

Common questions

Who pays if my employer goes bust?

You can apply to the government for redundancy pay, holiday pay, unpaid wages and statutory notice pay.

How much unpaid wages can I get?

Up to 8 weeks of money you’re owed, capped at £751 a week.

Is there a deadline?

Yes. Apply for redundancy, unpaid wages and holiday within 6 months of being dismissed.

Should I claim benefits too?

Yes. If you do not apply for benefits after you lose your job, you might get less money in your statutory notice pay payment.

Sources, read 12 October 2026. Every figure and rule on this page comes from one of these official pages. If one changes, this page is wrong until we fix it — tell us and we will.

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