The new tax year brings a number of statutory rate changes that will affect what you pay and what your employees receive. Here is a summary of what has changed for 2026/27, along with the key rates at a glance.
New Wage Rates – 1st April 2026:
| Age/Category | 2025 Hourly Rate | 2026 Hourly Rate | Increase (£) | Percentage Change |
| National Living Wage (21+) | £12.21 | £12.71 | £0.50 | 4.1% |
| Age 18–20 | £10.00 | £10.85 | £0.85 | 8.5% |
| Age 16–17 | £7.55 | £8.00 | £0.45 | 6.0% |
| Apprentice | £7.55 | £8.00 | £0.45 | 6.0% |
Statutory Sick Pay – 5th April 2026:
Perhaps the most significant reforms come in the area of Statutory Sick Pay.
Here’s a table showing the key changes to SSP starting April 2026:
| Aspect | Pre-April 2026 | Post April 2026 |
| Start date | Day 4 of absence | Day 1 of absence |
| Lower Earning Limit | £123 per week | Removed |
| Weekly SSP Rate | £118.75 | £123.25 or 80% of earnings |
Statutory Family- Related Pay Increases:
Starting April 2026, the weekly statutory rate for Maternity Pay, Paternity Pay, Adoption Pay, Shared Parental Pay, and Bereavement Pay will increase to £194.32 per week. This change reflects both inflation adjustments and policy reform aimed at improving work-life balance.
| Family-Related Benefit | Pre-April 2026 | Post April 2026 |
| Maternity / Paternity Pay | £187.18 | £194.32 |
| Adoption / Shared Parental Pay | £187.18 | £194.32 |
| Neonatal Care Pay | £187.18 | £194 32 |
| Parental Bereavement Pay | £187.18 | £194.32 |
*The earnings threshold for these benefits increases from £125 to £129.
These benefits are subject to either the set rate or 90% of average weekly earnings, whichever is lower. For many workers, the higher statutory rates now more closely align with real-life expenses, especially in early childcare.
Statutory redundancy pay and employment tribunal award limits increase
The maximum amount of a week’s pay for the purpose of calculating a redundancy payment and compensation for unfair dismissal, increases to £751; and the maximum amount of the compensatory award for unfair dismissal, increases to £123,543.
This applies where the event that gives rise to the entitlement to the payment occurs on or after 6 April 2026.