Here we have our annual update on the changes to statutory pay rates taking effect from April 2026.
The top band, known as the National Living Wage, applies to workers aged 21 and over. Different minimum wage rates continue to apply to 18-20-year-olds, under 18’s and apprentices aged under 19 or in the first year of an apprenticeship.
National Minimum Wage rates effective from 1st April 2026 will be as follows;
| New Rate from 1st April 2026 | Current Rate | Increase | |
| National Living Wage (21 and over) | £12.71 | £12.21 | 4.1% |
| 18 – 20 Years Old | £10.85 | £10.00 | 8.5% |
| Under 18 | £8.00 | £7.55 | 6% |
| Apprentice (*) | £8.00 | £7.55 | 6% |
| Accommodation Offset | £11.10 | £10.66 | 4.1% |
(*) – The apprentice rate is for apprentices aged under 19 or over who are in their first year.
Other Statutory Pay updates
Statutory Family-Related Pay – the weekly rate of statutory maternity, paternity, statutory parental bereavement pay, statutory neonatal care pay, adoption and shared parental pay will increase on 5th April 2026 to £194.32 (up from £187.18).
Statutory Sick Pay – the weekly rate of statutory sick pay will increase on 5th April 2026 to £123.25 (up from £118.75).
Statutory Redundancy Pay – the weekly rate of pay for the purpose of redundancy pay calculations will be capped at £751, increasing from £719. Effective from 6th April 2026.
Tribunal Awards – the maximum possible statutory award for redundancy will increase to £22,530 (up from £21,570). The maximum compensatory award for ordinary unfair dismissal will increase to the lesser of 1 year’s pay or £123,543 (up from £118,223). These changes take effect on 6th April 2026. However, this is expected to be the last increase, as the compensatory award is set to be removed by the Employment Rights Act 2025, from 1 January 2027.
Please update your payroll systems to take account of the new rates and avoid potential penalties or public naming and shaming by HMRC!
Do you need Legal Advice on a pay issue?
If you have questions about pay or statutory rates, our employment law solicitors are here to help. For more information or tailored advice, contact us today to book your free initial consultation with one of our friendly experts.
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