Employment Alert – Increases to Tribunal Awards and Statutory Payments from April 2026
What’s happening?
Every April, employment-related compensation and statutory rates increase. Below is a short reminder of the April 2026 increases to be aware of.
National Minimum Wage (NMW)
- National living wage (NLW) (21 and over): from £12.21 to £12.71
- 18-20 year old rate: from £10.00 to £10.85
- 16-17 year old rate: from £7.55 to £8.00
- Apprentice rate: from £7.55 to £8.00
Increase in Tribunal Compensation Limits and Statutory Pay Rates
Compensation limits and prescribed rates of pay for several statutory rights increased from 6 April 2025. The main increases for employers to be aware of are as follows:
| New Rate (from 6 April 2026) | Previous Rate (to 5 April 2026) | |
| Family-related leave (maternity, paternity, adoption, shared parental, parental bereavement and neonatal care leave). | £194.32 per week | £187.18 per week |
| Statutory Sick Pay | £123.25 | £118.75 |
| A week’s pay (used for redundancy pay and basic awards) | £751 | £719 |
| Maximum award for Compensatory Award for Unfair Dismissal | £123,543 (or | £118,223 |
| Injury to feelings awards (bands for compensation for claims like discrimination) | Lower: £1,300 – £12,600 Middle: £12,600 – £37,700 Upper: £37,700 – £62,900 | Lower: £1,200 – £12,100 Middle: £12,100 – £36,400 Upper: £36,400 – £60,700 |
What should you do?
Prepare: Review how the changes will impact your business financially and operationally. In particular, the increased rates will likely impact on redundancy cost calculations, settlement negotiations and litigation risk assessments and budgeting. Ensure your payroll and HR systems are updated and that all policies and procedures adequately reflect the new rates.
Advice: If you require advice relating to these changes, please contact [email protected] who can put you in touch with one of our specialist employment lawyers.All comments and information were accurate at the time of publication and may not reflect current developments. This should not be relied upon without seeking appropriate professional advice.
