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Wednesday, May 20, 2026

UK: April Changes to Statutory Payment Rates, Compensation Limits and the ERA 2025 Reforms - Littler Mendelson P.C.

April usually marks a busy month for the rates and changes each year. This April is set to be busier than ever in the employment law calendar. Not only will the annual increases to certain statutory payments and compensation limits take effect, but key changes are also coming under the UK Employment Rights Act 2025 (“ERA 2025”). Also, in recently published commencement regulations, the Government has confirmed the timing of certain ERA 2025 reforms, including bringing into force on April 6,2026 the requirement to keep adequate records to demonstrate compliance with annual leave and pay requirements (the timing for which had previously been unknown).

The key rates and legislative changes, with the ERA 2025 reforms in bold1 are below.

The ERA 2025 dates for implementation are taken from the Government’s published timeline (updated on February 3, 2026) as well as commencement regulations (where available).

Overview of Key Changes

April 1, 2026

Increases to National Living and Minimum Wage rates

April 5, 2026

Increase to the rate for statutory maternity pay

April 6, 2026

Increases to statutory rates:

—Increases to tribunal award compensation limits, including for unfair dismissal and statutory redundancy payments

—Increases to the rate of Statutory Sick Pay (SSP)

—The prescribed rates for paid statutory family leaves (including paternity pay, adoption pay, shared parental pay, maternity allowance, parental bereavement pay and neonatal care pay) increase

ERA 2025...



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