By Fiona Haworth
February 10th 2025
By Fiona Haworth
February 10th 2025
The statutory rates for the 2025/26 financial year have been updated to reflect changes in the economic landscape and to support workers’ living standards.
Effective from 6 April 2025, the weekly rate of statutory sick pay (SSP) will increase to £118.75, up from £116.75.
Similarly, statutory maternity pay, maternity allowance, statutory paternity pay, statutory shared parental pay, statutory adoption pay, and statutory parental bereavement pay will rise to £187.18 per week, an increase from £184.03.
The lower earnings limit, which is the weekly earnings threshold for qualifying for these payments (excluding maternity allowance), will also see an increase from £123 to £125. However, the threshold for maternity allowance remains unchanged at £30 per week.
The government has emphasised that these increases are designed to be fair and to bolster the living standards of workers.
The proposed Employment Rights Bill, which is expected to come into effect in 2026, may further influence statutory sick pay by removing the lower earnings limit as a qualifying requirement. This change, although not immediate, signals a shift towards more inclusive eligibility criteria for statutory payments.
In summary, the statutory rate changes for 2025/26 reflect a significant adjustment aimed at improving worker compensation in response to economic pressures. Businesses must navigate these changes carefully, balancing the need to support their workforce with the financial realities of increased employment costs.
The maximum amount of a week’s pay for the purposes of calculating statutory redundancy pay has yet to be announced.
Neonatal care leave and pay to come into force from April 2025
Subject to parliamentary approval, regulations to introduce a new entitlement to Neonatal Care Leave And Pay will come into force from 6 April 2025.
Neonatal Care Leave and Pay, is aimed at supporting parents of babies who require neonatal care after birth. This legislation will allow eligible employees to take up to 12 weeks of paid leave in addition to other parental leave entitlements. The leave is designed to alleviate the financial and emotional stress faced by parents during this critical time, ensuring they can be present with their newborn babies without the added pressure of work commitments. Eligibility for Neonatal Care Leave will be contingent upon certain criteria, including the duration of the baby’s stay in neonatal care and the employment status of the parents.
The right to receive statutory neonatal care pay requires 26 weeks of employment and earnings on average of at least £125 a week. This mirrors the entitlement to maternity and shared parental leave pay. Statutory Neonatal Care Pay will be paid at the weekly rate of £187.18 or 90% of the employee’s average weekly earnings, whichever is lower.
This legislation recognises the unique challenges faced by parents of premature or sick infants.