As per normal practice, April brings about changes to statutory payments that employers need to be aware of. These will take effect from 6 April 2026. These updates include increases to national minimum wage rates, family related leave pay, sick pay, National Insurance contributions, redundancy rates, and tribunal award limits. The following information provides a detailed breakdown of these changes to ensure employers are prepared for the upcoming financial year.
National Minimum Wage (NMW) Rates (Per Hour)
| Category | New Rate | Increase (£) | Increase (%) |
|---|---|---|---|
| National Living Wage (21 and over) | £12.71 | £0.50 | 4.1% |
| 18-20 Year Old Rate | £10.85 | £0.85 | 8.5% |
| 16-17 Year Old Rate | £8.00 | £0.45 | 6% |
| Apprentice Rate | £8.00 | £0.45 | 6% |
| Accommodation Offset | £11.10 | £0.44 | 4.2% |
For those employers that commit to pay the London Living Wage, the new rate of £14.80 was announced in October 2025. If you haven’t already implemented this rate, it should be effective on payroll from 1 May 2026. The next increase announcement is due October 2026.
Tribunal Award Limits and Vento Bands
The maximum basic award of unfair dismissal increases to £22,530.
The maximum compensatory award for unfair dismissal will increase to £123,543 or one year’s gross pay, whichever is lower.
The Vento bands guide compensation for injury to feelings in discrimination cases.
The updated bands are as follows:
- Lower band: £1,300 to £12,600 for less serious cases.
- Middle band: £12,600 to £37,700 for cases that do not merit an award in the upper band.
- Upper band: £37,700 to £62,900 for the most serious cases.
- Exceptional cases: Awards may exceed £62,900.
As a reminder, from 6 April 2026 the maximum protective award for failing to comply with collective redundancy consultation obligations will double from 90 days’ pay to 180 days’ pay per affected employee, significantly increasing the potential cost of non-compliance for employers.
Author: Amy Roeks
