The new rates for statutory maternity pay, statutory sick pay, and various other benefits, have just been announced by the Government. The new rate increases will apply from the 3rd April 2022.
New Rates: Statutory Maternity Pay, Paternity Pay, Shared Parental Pay, and Adoption Pay
The increased rates for Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay, and Statutory Adoption Pay, will take effect from the 3rd April 2022, and are as follows:-
- Statutory maternity pay – those who qualify are entitled to receive it for 39 weeks at a rate of 90% of their gross weekly pay per week, subject to a maximum of £156.66 per week (up from £151.97 per week) after the first 6 weeks.
- Statutory Paternity Pay – the smaller of £156.66 per week (up from £151.97 per week) or 90 per cent of their average weekly earnings per week
- Statutory Shared Parental Pay – the smaller of £156.66 per week (up from £151.97 per week) or 90 per cent of their average weekly earnings per week
- Statutory Adoption Pay – those who qualify are entitled to receive it for 39 weeks at a rate of 90% of their gross weekly pay per week, subject to a maximum of £156.66 per week (up from £151.97 per week) after the first 6 weeks.
The average gross weekly earnings required to qualify for these benefits has risen from £120.00 or more to £123.00 or more.
Increase In Statutory Sick Pay And Statutory Parental Bereavement Pay
From the 6th April 2022, statutory sick pay will increase from £96.35 per week to £99.35 per week, and from the 3rd April 2022 Statutory Parental Bereavement Pay will rise from £151.97 per week to £156.66 per week.
The average gross weekly earnings required to qualify for these benefits has risen from £120.00 or more to £123.00 or more, and therefore match the earnings threshold for Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, and Statutory Shared Parental Pay.
Maternity Allowance & Statutory Maternity Pay
The Government also announced that there would be an increase in Maternity Allowance. Currently, where an employee earns less than £120.00 per week on average (i.e. the earnings threshold for Statutory Maternity Pay), but was employed for 26 of the 66 previous weeks earning at least £30 per week (averaged over any 13 week period during the said 66 weeks), then they are entitled to Maternity Allowance for 39 weeks of the smaller of £151.97 or 90 per cent of their average gross weekly earnings per week.
However, from the 3rd April 2022, where an employee earns less than £123.00 per week on average, but was employed for 26 of the 66 previous weeks earning at least £30 per week (averaged over any 13 week period during the said 66 weeks), then they are entitled to Maternity Allowance for 39 weeks of the smaller of £156.66 or 90 per cent of their average gross weekly earnings per week.
Other Rate Rises
Increases in attendance allowance and the state pension were also announced at the same time.
The Chancellor of the Exchequer also recently announced in the recent in the Autumn Budget and Spending Review 2021 on the 27th October 2021 that the National Living Wage and the National Minimum Wage will also increase from from the 1st April 2022.
The new rates for the National Living Wage and the National Minimum Wage that will apply from the 1st April 2022 are as follows:-
- For workers aged 23 and over (i.e. the National Living Wage), the rate will increase by 6.6% from £8.91 per hour to £9.50 per hour
- For workers aged 21-22 inclusive, the rate will increase by 9.8% from £8.36 per hour to £9.18 per hour
- For workers aged 18-20 inclusive, the rate will increase by 4.1% from £6.56 per hour to £6.83 per hour
- For workers aged 16-17 inclusive, the rate will increase by 4.1% from £4.62 per hour to £4.81 per hour
- The apprentice rate will increase by 11.9% from £4.30 per hour to £4.81 per hour
- The daily rate for the accommodation offset will increase by 4.1% from £8.36 to £8.70
