But surely that is not legal? It would be slightly more than redundancy pay, but obviously I would be working for it!
I’d ask what the redundancy package is, depends what you’re paid and whether they offer statutory or something else. 40 days (or statutory) tax free plus you work your notice anyway could be more than 26 days taxed.
Either way it doesn’t sound right. Check with CAB/ACAS but I’d go into any discussions in the knowledge that you’re owed at least statutory (and have to work some notice anyway) and you know they have work they want you to do, potentially your first freelance job.
My experience is you get F*** all back being nice and trying to do the right thing for a big employer.