April 2026 statutory and wage rates at a glance
| Payment or rate | Current rate | Rate from April 2026 | Effective date |
|---|---|---|---|
| Statutory Sick Pay | £118.75 per week | £123.25 per week | 6 April 2026 |
| Statutory maternity, paternity, adoption, shared parental, parental bereavement, neonatal care pay and maternity allowance | £187.18 per week | £194.32 per week | 6 April 2026 |
| Lower Earnings Limit | £125 per week | £129 per week | 6 April 2026 |
| National Minimum Wage (age 21 and over) | £12.21 per hour | £12.71 per hour | 1 April 2026 |
| National Minimum Wage (age 18 to 20) | £10.00 per hour | £10.85 per hour | 1 April 2026 |
| National Minimum Wage (age 16 to 17 and apprentices) | £7.55 per hour | £8.00 per hour | 1 April 2026 |
| Accommodation offset | £10.66 per day | £11.10 per day | 1 April 2026 |
Statutory payment increases from 6 April 2026
The Government has confirmed increases to statutory sick pay and statutory family-related payments which will apply from 6 April 2026.
1. Statutory Sick Pay
The weekly rate of Statutory Sick Pay will increase from £118.75 to £123.25. This rate applies where an employee satisfies the qualifying conditions for SSP and is absent from work due to sickness.
Forthcoming legislation will also extend SSP entitlement to employees earning below the Lower Earnings Limit. Where this applies, affected employees will be entitled to the lower of the SSP weekly rate or 80 per cent of their average earnings. The existing earnings threshold will, however, continue to apply for family-related statutory payments.
2. Statutory family leave payments
The standard weekly rate for statutory maternity pay, statutory paternity pay, statutory adoption pay, statutory shared parental pay, statutory parental bereavement pay, statutory neonatal care pay and maternity allowance will increase from £187.18 to £194.32 per week.
3. Lower Earnings Limit
The Lower Earnings Limit used to assess eligibility for statutory family leave pay will increase from £125 to £129 per week. Employees earning below this level will continue to fall outside entitlement to statutory maternity pay and other family-related statutory payments.
National Minimum Wage increases from 1 April 2026
New National Minimum Wage and National Living Wage rates will apply from 1 April 2026. Employers are required to ensure that pay rates for all workers and apprentices meet or exceed the new statutory minimums from that date.
1. New hourly rates
From 1 April 2026, the National Minimum Wage and National Living Wage rates will increase across all age bands. Workers aged 21 and over will be entitled to a minimum hourly rate of £12.71, up from the current rate of £12.21. For workers aged 18 to 20, the minimum hourly rate will rise from £10.00 to £10.85. Workers aged 16 to 17 and apprentices will see their minimum hourly rate increase from £7.55 to £8.00.
2. Accommodation offset
The daily accommodation offset will increase from £10.66 to £11.10. This affects employers who provide accommodation and offset part of its cost against wages for National Minimum Wage purposes.
Related National Insurance changes from April 2026
Draft Regulations due to come into force on 6 April 2026 also re-rate a number of National Insurance thresholds and contribution rates. These include an increase to the Class 2 small profits threshold from £6,845 to £7,105, an increase in the weekly Class 2 contribution rate from £3.50 to £3.65 and an increase to voluntary Class 3 contributions from £17.75 to £18.40.
The Regulations maintain most Class 1 earnings thresholds at their existing levels, with the exception of the Lower Earnings Limit, which will increase to £129 per week. They also extend the zero-rate secondary Class 1 National Insurance relief for employers of qualifying armed forces veterans through the 2026–27 and 2027–28 tax years and allow for continued Treasury grant payments into the National Insurance Fund.
DMS Perspective
The April 2026 rate increases come into play alongside wider Employment Rights Act 2025 changes, with the greater relative risk being who now qualifies and not just how much has to be paid.
For employers with large numbers of part-time, variable-hours or lower-paid staff, sickness absence will no longer be at zero-cost.Workers who previously fell outside SSP altogether will now generate a statutory cost, even where payment is capped at 80% of average earnings. Expanded SSP eligibility for lower earners therefore fundamentally alters absence cost modelling.
The same applies to family-related statutory payments. While the Lower Earnings Limit still applies, the wider parental eligibility framework under the 2025 reforms increases the pool of workers able to trigger statutory pay obligations. Combined with higher weekly rates, employers face a compounding financial effect rather than a marginal uplift.
Employers who focus solely on the re-rating figures at this stage are likely to discover the true cost only after it has already crystallised.
Need Assistance?
If you would like advice on how the April 2026 statutory payment and wage increases affect your business, or support reviewing payroll processes, absence policies and cost exposure under the Employment Rights Act 2025 changes, our employment law advisers can help. We offer fixed-fee telephone consultations to give you practical guidance tailored to your workforce and risk profile.
