The government has announced increases to several statutory employment payments and wage rates, all due to take effect from April 2026.
Employers should ensure payroll systems, budgets and contracts are reviewed in good time to reflect the changes.
Statutory payment increases
The Department for Work and Pensions has confirmed the following weekly rate increases, effective from April 2026:
Statutory Sick Pay (SSP): £123.25 (up from £118.75)
Statutory family-related payments, including:
- Statutory Maternity Pay
- Maternity Allowance
- Statutory Adoption Pay
- Statutory Paternity Pay
- Statutory Shared Parental Pay
- Statutory Neonatal Care Pay
- Statutory Parental Bereavement Pay
£194.32 (up from £187.18)
Earnings thresholds
- The Lower Earnings Limit (the weekly earnings threshold for qualifying for statutory payments, except maternity allowance) will increase to £129 (up from £125).
- The threshold for Maternity Allowance will remain unchanged at £30 per week.
An Order will be laid before parliament to formally confirm these changes.
National Minimum Wage and National Living Wage increases
The Government has also accepted in full the Low Pay Commission’s recommendations, confirming new National Minimum Wage (NMW) and National Living Wage (NLW) rates from 1 April 2026:
- National Living Wage (aged 21 and over): £12.71 per hour (currently £12.21)
- 18–20 year old rate: £10.85 per hour (currently £10.00)
- 16–17 year old rate: £8.00 per hour (currently £7.55)
- Apprentice rate: £8.00 per hour (currently £7.55)
- Accommodation offset: £11.10 per day (currently £10.66)
What does this mean for employers?
These increases will have a direct impact on payroll costs, particularly for employers with:
- Lower-paid workforces
- Apprentices or younger workers
- Regular use of statutory family-related payments
Employers should review:
- Wage structures and pay differentials
- Payroll systems and auto-updates
- Employment contracts and staff communications
Failure to implement the correct statutory rates can result in financial penalties and reputational risk, particularly in relation to minimum wage compliance.
How we can help
We support employers with:
- Reviewing pay structures and minimum wage compliance
- Updating contracts and policies
- Managing statutory payments correctly and consistently
📞 If you’d like advice on how these changes may affect your business, or support in preparing for April 2026, contact Elcons Employment Law today: 0800 014 9595
