Statutory redundancy pay should be raised to ensure that sacked workers are adequately compensated, according to the Trade Unions Congress (TUC).

The maximum weekly amount used to calculate redundancy payments increases from £330 to £350 from the start of February, but the TUC has called for this to be raised to £500.

The Union has also called for the lump sum that staff receive before they have to pay tax, which has been frozen at £30,000 since 1989, to be increased to £50,000.

"More than 1,500 people a week are losing their jobs and many will be facing redundancy for the first time in their lives. There can be no assumption that the people who are losing their jobs will find it easy to get new ones, and they will need all the help they can get with redundancy pay," said Brendan Barber of the TUC.

Small business owners are concerned that a rise in redundancy pay would put even more pressure on their firms, at a time when many are struggling with cash flow.

Katja Hall of the CBI said that the measures would, "put even more jobs at risk by increasing the financial pressure on distressed businesses at a critical time."