From 1 April 2026, several important UK employment rates have changed, affecting both employers and employees across a wide range of sectors.
These updates include increases to the National Minimum Wage, Statutory Sick Pay (SSP), and family-related statutory payments, alongside changes to redundancy caps and compensation limits in discrimination claims.
These annual adjustments are designed to reflect rising living costs and ensure fair pay, but they also bring new compliance responsibilities. Employers must ensure payroll systems are updated promptly, while employees should check that they are receiving the correct entitlements. Failure to apply the new rates correctly can result in financial penalties and potential disputes.
This guide explains the latest changes in detail and outlines what both employers and employees need to do to remain compliant and ensure accurate pay.
Key Takeaways
- National Minimum Wage rates have increased across all age groups from 1 April 2026.
- Statutory payments, including SSP and family-related pay, have risen from 6 April 2026.
- Redundancy pay caps and unfair dismissal compensation limits have increased.
- Updated Vento bands affect compensation awards in discrimination claims.
National Minimum Wage Increases from April 2026
On 1st April 2026, the National Minimum Wage (NMW) rates were increased as follows:
- Workers aged 21 or over – £12.71 per hour.
- Workers aged 18 – 20 – £10.85 per hour.
- Workers aged 16 – 17 – £8.00 per hour.
- Apprentices – £8.00 per hour.
A large proportion of the workforce is on the NMW, so employers must ensure these new rates are implemented.
April 2026 Changes to Statutory Pay, Redundancy, and Compensation Limits
On 6th April 2026, Statutory Sick Pay (SSP) increased to £123.25 per week (or 80% of an employee’s average weekly earnings if this is lower than the new rate). Employees now also have additional rights in relation to SSP.
On 6th April 2026, ‘Family Friendly’ payments such as Statutory Maternity/Paternity/Adoption Pay increased to £194.32 per week. Employees will receive this, or 90% of their weekly wage, whichever is lower.
On 6th April 2026, the weekly wage cap for Statutory Redundancy increased from £719 to £751.
The cap for unfair dismissal has also increased to £123,543. It is anticipated that under the Employment Rights Act 2025 (ERA 2025) such cap will be abolished. We will continue to provide updates on the changes under the ERA 2025.
Updated Vento Compensation Bands for Discrimination Claims
The Vento bands for discrimination claims presented to an employment tribunal on or after 6th April 2026 have been revised as follows:
- Lower band – £1,300 to £12,600 (less serious cases)
- Middle band – £12,600 to £37,700 (more serious cases that do not merit an award in the upper band)
- Upper band – £37,700 to £62,900 (most serious cases)
- Most exceptional matters – in excess of £62,900.
If you need any assistance with an employment tribunal claim, please contact our employment team.
As an Employee, What Do I Need to Do?
To ensure you are receiving the correct pay and entitlements, you should:
- Review the updated National Minimum Wage and statutory payment rates to understand what applies to you
- Check your payslip from April 2026 onwards to confirm the correct rates have been applied
- Raise any discrepancies with your employer or HR team promptly
- Keep records of your hours worked and payments received in case of any disputes
- Stay informed about your rights, particularly in relation to Statutory Sick Pay and family-related leave
As an Employer, What Do I Need to Do?
Employers should take the following steps to remain compliant:
- Update payroll systems to reflect the new rates from April 2026
- Ensure payroll and HR teams are aware of the changes and implementation dates
- Communicate any pay or entitlement changes clearly to employees
- Carry out checks to avoid underpayments and ensure ongoing compliance
- Be aware that non-compliance may lead to investigation and fines from the Fair Work Agency
If you require more specific advice in relation to the upcoming changes under the ERA 2025, please contact our dedicated Employment Solicitors in Surrey on 0800 011 9813.
