The UK government has proposed updated statutory rates for sick pay and family-related leave, effective from 6th April 2026. These changes include a 3.8% increase to standard weekly rates and a rise in the Lower Earnings Limit (LEL) for family leave. Employers or HR managers must prepare for increased payroll costs and policy updates to ensure compliance with the new legal thresholds.
Key Takeaways
- Standard Rate Increase: Statutory family leave and sick pay rates will rise by approximately 3.8%.
- Earnings Threshold Change: The average weekly earnings required to qualify for family leave pay will rise to £129.00.
- New Entitlement: Neonatal Care Leave Pay is now a permanent fixture in the statutory pay landscape.
- Budgetary Impact: Employers should model these increases now to account for higher overheads in the 2026/27 tax year.
As we approach the new tax year, the Government has outlined its proposed statutory rates for 2026/27. These annual adjustments are designed to align worker support with inflation, specifically the Consumer Prices Index (CPI) from the preceding September. While these figures are technically "proposed" until they receive final parliamentary approval, they are the figures businesses must use for their financial planning. This year’s update is particularly significant as it continues to integrate newer rights, such as Neonatal Care Leave, into the standard payroll cycle, alongside a general increase across all statutory benefits.
The New Pay Rates at a Glance
The primary change for most businesses will be the increase in the flat weekly rate for parental and sick pay. From 6th April 2026, the standard rate for most family-related leave will increase from £187.18 to £194.32 per week. This applies to Maternity, Paternity, Adoption, and Shared Parental pay.
Notably, Statutory Sick Pay (SSP) will also see an increase. It is proposed to rise from £118.75 to £123.25 per week. Below is a detailed breakdown of the old versus the new rates:
Payment Type |
Old Rate (Pre-April 2026) |
New Rate (From 6 April 2026) |
Statutory Maternity Pay |
£187.18 per week |
£194.32 per week |
Statutory Paternity Pay |
£187.18 per week |
£194.32 per week |
Statutory Shared Parental Pay |
£187.18 per week |
£194.32 per week |
Statutory Adoption Pay |
£187.18 perweek |
£194.32 per week |
Statutory Parental Bereavement Pay |
£187.18 per week |
£194.32 per week |
Statutory Neonatal Care Leave Pay |
£187.18 per week |
£194.32 per week |
Statutory Sick Pay (SSP) |
£118.75 per week |
£123.25 per week |
Is your payroll system ready for the 2026/27 shift?
Ensuring your business remains compliant with the latest Department for Work and Pensions (DWP) rates is critical to avoiding disputes and penalties.
Call The HR Consultants on 01789 653938 or book a chat to review your employment contracts and update your internal pay policies.
Qualification and Compliance
Beyond the rates themselves, the "Lower Earnings Limit" (LEL) for qualification is also changing. To qualify for statutory family leave payments, an employee’s average gross weekly earnings must be £129.00 or more (up from £125.00). It is vital for HR consultants and managers to monitor staff on variable hours or part-time employment contracts who may hover near this threshold, as a small change in hours could now impact their eligibility for statutory support.
Furthermore, employers must stay mindful of the Employment Rights Act 2025 reforms. While the flat rate of SSP is rising, the way it is accessed is also evolving—including the removal of "waiting days" for sick pay and the abolition of the LEL specifically for SSP. This means even your lowest-paid workers may soon be entitled to sick pay from day one, significantly widening the scope of who you must pay during periods of ill health.
The Bottom Line
As these rates become law on 6th April 2026, the best practice is proactive communication. Ensure that employees currently on or planning for maternity or paternity leave are aware of the rate increase, as it will automatically apply to any payment weeks falling after the effective date.
By updating your payroll software early and reviewing your sickness and parental leave policies now, you can ensure a seamless transition into the new tax year without the risk of underpayment.
