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LEGAL UPDATE: Changes to Statutory Payments

As we are approaching another tax year, the Department for Work and Pensions (“DWP”) has announced proposed revised amounts for various statutory payments from 1 April 2018

Statutory Maternity Pay/Statutory Paternity Pay/Statutory Shared Parental Pay

 These are all currently £140.98 (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate). The weekly rate will increase to £145.18 with effect 1 April 2018. 

To qualify, the employee must have average weekly earnings of at least:

  • £116, if the baby is due on or after 15 July 2018. 
  • £113, if the baby is due on or before 14 July 2018. 

Statutory Adoption Pay (SAP)

The weekly rate increases so that it is payable at 90% of the employee’s average weekly earnings for the first six weeks, with the remainder of the adoption pay period at the rate of £145.18 (or 90% of average weekly earnings if this is less than £145.18) with effect 1 April 2018. 

To qualify, the employee must have average weekly earnings of at least:

  • £116, if the matching or notification occurs on or after 01 April 2018.
  • £113, if the matching or notification occurs on or before 31 March 2018.

Statutory Sick Pay (SSP)

The weekly rate increases from £89.35 to £92.05 with effect 6 of April 2018. To be entitled, the employees average earnings must be equal to or more than the lower earnings limit, which is increasing from £113 to £116.

National Living Wage (NLW)

The NLW for workers aged 25+ will increase to £7.83, the standard adult rate for workers aged 21-24 will be £7.38, and the development rate for workers aged 18-20 will be £5.90.

This change in rates will mean employers will need to carefully plan their budgets for 2018/2019 and, if necessary, prepare for amendments to their policies and other documentation in relation to family-friendly benefits for April 2018.

If you need help and advice in relation to rate changes, please do not hesitate to contact me or the employment team on 0113 350 4030 or at hello@scesolicitors.co.uk.

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SCE Solicitors is a boutique employment law and dispute resolution practice based in Leeds which advises clients nationwide.  Please note that the information in this blog is to provide information of general interest in a summary manner and should not be construed as individual legal advice. Readers should consult with SCE Solicitors or other professional counsel before acting on the information contained here.

Richard Newstead

Richard qualified as a Legal Executive over 20 years ago and has significant experience in Employment law and Litigation.

Richard acts for both employers and employees drafting and advising on settlement agreements, contracts of employment, consultancy agreements, directors service agreements and general workplace policies. He acts for commercial clients in the employment tribunal dealing with unfair dismissals, constructive dismissals and claims for discrimination.
Richard Newstead

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Richard Newstead

Richard qualified as a Legal Executive over 20 years ago and has significant experience in Employment law and Litigation. Richard acts for both employers and employees drafting and advising on settlement agreements, contracts of employment, consultancy agreements, directors service agreements and general workplace policies. He acts for commercial clients in the employment tribunal dealing with unfair dismissals, constructive dismissals and claims for discrimination.

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