In brief
Alongside the usual proposed annual increases in statutory payments such as sick pay, maternity and other family leave pay rates, and compensation payments, there are additional changes being introduced in UK employment law in April 2026. These include a new entitlement to Bereaved Partner’s Paternity Leave and further changes from the Employment Rights Act 2025 (ERA) coming into force.
Key takeaways
The following changes to the statutory payments have been proposed:
Statutory sick pay (SSP)
From 6 April 2026, SSP will rise from GBP 118.75 to GBP 123.25 per week. From the same date under the ERA, SSP will also be payable from day one of sickness at a rate of the lower of either the annually fixed flat weekly rate or 80% of weekly earnings.
Statutory maternity, paternity, adoption, shared parental and parental bereavement pay
From 6 April 2026, statutory maternity pay, paternity pay, adoption pay, shared parental pay, and parental bereavement pay will rise from GBP 187.18 to GBP 194.32 per week.
From the same date, under the ERA, paternity leave and unpaid parental leave will become a day one right. Paternity pay will continue to require 26 weeks’ continuous service.
Maternity allowance
From 6 April 2026, maternity allowance will rise from GBP 187.18 to GBP 194.32 per week.
National minimum wage
From 1 April 2026, the following national minimum wages will apply:
- National living wage (age 21 or over) will rise from GBP 12.21 to GBP 12.71 per hour.
- National minimum wage (age 18-20) will rise from GBP 10.00 to GBP 10.85 per hour.
- National minimum wage (age 16-17 and apprentices) will rise from GBP 7.55 to GBP 8.00 per hour.
From 7 April 2026, the Fair Work Agency will be formally established and will become the single state enforcement power in areas such as national minimum wage enforcement, as well as other areas in the future.
Statutory redundancy/unfair dismissal basic award calculation – Amount of a week’s pay
From 6 April 2026, this will increase from GBP 719 to GBP 751 in Great Britain.
Unfair dismissal – Compensatory award
The cap on the compensatory award for unfair dismissal will increase from GBP 118,223 to GBP 123,543 in Great Britain. This is likely to be the final increase in Great Britain to the statutory cap on the compensatory award as it is proposed to be removed from 1 January 2027 under the ERA.
Vento bands
The Vento bands for injury to feelings awards in discrimination claims are increasing for claims present on or after 6 April 2026 to the following:
- Lower band (less serious cases): GBP 1,300 to GBP 12,600;
- Middle band (cases that do not merit an award in the upper band): GBP 12,600 to GBP 37,700;
- Upper band (most serious cases): GBP 37,700 to GBP 62,900; and
- Most exceptional cases: in excess of GBP 62,900.
Bereaved partner’s paternity leave
From 6 April 2026, the new legal right to allow partners up to 52 weeks of unpaid leave if a mother or primary adopter dies, will be introduced under the Bereaved Partners Paternity Leave Regulations 2026. Whilst also discussed alongside the ERA changes, this is a standalone piece of legislation.
Employment Rights Act 2025 – April changes
Changes coming into effect on 6 April 2026
- Collective redundancy protective award – The award for a breach of the collective redundancy consultation requirements will increase from a maximum of 90 days’ pay per employee to a maximum of 180 days’ pay.
- Paternity leave and unpaid parental leave – As noted above, both forms of leave will become day one rights. Statutory paternity pay will continue to require 26 weeks’ service and statutory parental leave will continue to be unpaid in its entirety.
- Statutory sick pay – As noted above, SSP will be payable from day one of sickness at a rate of the lower of either the annually fixed flat weekly rate or 80% of weekly earnings. This removes the three-day waiting period and the lower earnings limit.
- Whistleblowing – The categories of potential qualifying disclosures for whistleblowing purposes will expressly include disclosures about sexual harassment.
- Equality action plans – Employers are encouraged to publish voluntary action plans with their gender pay gap data for the 2026-2027 reporting year. This voluntary publication is being introduced ahead of mandatory publication for employers with 250 or more employees which is expected in Spring 2027 under secondary legislation.
- Simplification of trade union recognition procedure and thresholds – The changes allow the government to lower the existing union membership threshold for a recognition application; down from the current 10% to as little as 2%. It also removes the current requirement for the union to demonstrate likely majority support for recognition.
- New obligation to keep holiday records – Employers will be required to keep records which are adequate to show whether the employer has complied with workers’ statutory entitlements to holiday and holiday pay.
From 7 April 2026, a Fair Work Agency will be created and will take over existing state enforcement powers in areas such as national minimum wage enforcement. Their powers will expand in later implementation of the Act to include enforcement of rules relating to holiday pay record keeping.
For further updates in respect of the other proposed changes under the ERA, please read our summary and next steps guide, available here or contact your usual Baker McKenzie contact to ask about joining our training and insight sessions on the Act.
For advice or to discuss what this means for you and your business, please contact your usual Baker McKenzie contact.
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Laura Kyne, Lawyer, has contributed to this legal update.