Government Publishes Proposed Statutory Pay Rates for 2026: What Employers Need to Know

The Government has released the proposed increases to statutory family-related payments and Statutory Sick Pay (SSP), with changes expected to take effect from April 2026. These adjustments form part of wider reforms under the Employment Rights Bill, which is now close to becoming law. Below is a clear breakdown of what businesses and employees can expect.

New Statutory Sick Pay Rate for April 2026

From April 2026, Statutory Sick Pay is set to rise to £123.25 per week, an increase from the current £118.75.

Alongside the higher rate, two significant reforms to the SSP system are scheduled:

• SSP will become available to all employees, regardless of how much they earn. At present, employees with earnings below the Lower Earnings Limit cannot claim SSP.

• SSP will be paid from the first day of absence, rather than starting on day four as it does now.

These changes aim to make sick pay support more accessible and fair across the workforce.

Updated Family-Related Statutory Payments

Employees taking family-related leave—such as maternity, paternity, adoption, shared parental leave, neonatal care leave, or parental bereavement leave—are expected to receive £194.32 per week from April 2026. This is an increase from the current weekly rate of £187.18.

This uplift ensures that statutory family payments keep pace with rising living costs and offer improved support to new and bereaved parents.

Increase to the Lower Earnings Limit

The Lower Earnings Limit (LEL) is also due to rise, moving from £125 to £129 per week. This threshold determines whether employees qualify for statutory family-related payments.

• Employees earning below £129 per week will not be eligible for the updated family-related payments.

• However, thanks to the reforms under the Employment Rights Bill, these lower-earning workers will still qualify for SSP from April 2026 for the first time.

This marks a substantial expansion of rights for lower-paid employees.

Awaiting Final Approval

Although these rates are currently proposals, Government approval is expected and typically follows without significant changes. Employers should begin preparing their payroll systems and HR processes to accommodate the upcoming adjustments.