It wants to see the weekly limit used to calculate statutory redundancy pay increased from £330 to £500. Statutory redundancy pay is calculated (subscription required) on the basis of an employee's age and length of service, which determine how many weeks' pay is due.

When the limit on a week's pay was introduced in 1965 it was £40, more than twice the average wage (£19.60), according to the TUC. TUC general secretary Brendan Barber says:

"When it was introduced the big majority of the workforce had all their wages counted when working out their redundancy pay, but now more than half the workforce would lose out."

The TUC calculates that, had the limit been uprated in line with prices, it would now be more than £500 - and an increase in line with earnings would have put the figure in excess of £1,000.

Barber is calling for a one-off rise to £500, and a link to earnings rather than prices in the future, as "the minimum we need to see to start to restore some fairness".