Scrase Law Employment Solicitors

Increases in statutory payments due in April 2021

The Department for Work and Pensions has published proposed increases to a number of statutory payments, including statutory sick pay and maternity, paternity, shared parental and adoption pay from April 2021

Statutory payments increase

The following weekly rates are expected to apply from April 2020:

  • Statutory sick pay (SSP) – £96.35 (up from £95.85)
  • Statutory maternity pay (SMP) and maternity allowance – £151.97 (up from £151.20)
  • Statutory paternity pay (SPP) – £151.97 (up from £151.20)
  • Statutory shared parental pay (ShPP) – £151.97 (up from £151.20)
  • Statutory adoption pay (SAP) – £151.20 (up from £148.68)

The increase normally occurs on the first Sunday in April, which in 2021 will be 4 April.

National Minimum Wage increase

The Government has accepted the Low Pay Commission’s recommended increases to the National Minimum Wage and National Living Wage, to apply from 6 April 2021.  The National Living Wage, which currently applies only to workers aged 25 or over will be extended to 23 and 24 year olds for the first time. The new rates will be:

  • Apprentice – £4.30 (up from £4.15)
  • 16 to 17 – £4.62 (up from £4.55)
  • 18 to 20 – £6.56 (up from £6.45)
  • 21 to 22 – £8.36 (up from £8.20)
  • National Living Wage for those aged 23 and over – £8.91 (up from £8.72)

The apprentice rate will have the largest increase, up 3.6%.  This is in light of the Commission’s goal of fully aligning it with the rate for 16 to 17 year olds by 2022.

16 December 2020

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©2020 SCRASE LAW LTD. THIS POST IS FOR GENERAL INFORMATION ONLY AND IS NOT ADVICE. YOU ARE RECOMMENDED TO SEEK COMPETENT PROFESSIONAL ADVICE BEFORE TAKING ANY ACTION ON THE BASIS OF THIS POST