From 1 October 2009, the limit on a week's pay for the purposes of calculating a statutory redundancy payment will rise from £350 to £380. Accordingly, there will be an increase in the costs of making redundancies for employers and the maximum redundancy payment will increase to £11,400 (currently £10,500). This increase will also apply to other calculations using the maximum week’s pay including calculating the Basic Award in unfair dismissal cases. The rise is intended to provide more financial support for the increased number of employees being made redundant in the current economic climate. Whilst the additional costs may cause some concern to employers, the Government has announced that it is suspending the annual up-rating exercise in February 2010 which means that the £380 limit will apply until February 2011