I would only do it if i had another job to go straight into.
Otherwise you will gain nothing because they payout will be used to live on while you (hopefully) find another job!
I was in the same situation afew years ago and decided it wasnt worth it.
Others on my shift left and took the money but have all since regretted it.

Weigh up the pros and cons.

Pros: You get some cash (but only get to keep it if you dont need to live on it)

Cons: 7 years of redundancy down the drain
Next job you get you will probably be bottom of the ladder, puts u more in the position of last in first out too.
You are a nobody at the new place, whereas now you have 7 years of being known there and hopefully respected lol

Are they paying you just the legal entitlement or putting anything extra on top?