Most of the April 2023 rate changes have now been published. The two exceptions in terms of what is known about the April 2023 rate changes are what the new statutory cap on a weeks pay will be (i.e. for the purposes of calculating the basic award and statutory redundancy pay), and what the new Vento bands will be.
April 2023 Rate Changes
The April 2023 rate changes are now just 6 weeks away. Those that have been published thus far include the new National Living Wage and National Minimum Wage rates, the new rates for family friendly payments, and the new rate for Statutory Sick Pay (SSP).
The April 2023 rate changes will take effect between the 1st – 6th April 2023.
1st April 2023
The first of the April 2023 rate changes that will come into force are the increases in the National Minimum Wage and the National Living Wage that will apply from the 1st April 2023. The new rates for these are as follows:-
- For workers aged 23 and over (i.e. the National Living Wage), the rate will increase by 9.7% from £9.50 per hour to £10.42 per hour
- For workers aged 21-22 inclusive, the rate will increase by 10.9% from £9.18 per hour to £10.18 per hour
- For workers aged 18-20 inclusive, the rate will increase by 9.7% from £6.83 per hour to £7.49 per hour
- For workers aged 16-17 inclusive, the rate will increase by 9.7% from £4.81 per hour to £5.28 per hour
- The apprentice rate will increase by 9.7% from £4.81 per hour to £5.28 per hour
- The daily rate for the accommodation offset will increase by 4.6% from £8.70 to £9.10
In setting the new rate for the National Living Wage, the Government implemented the recommendations from the Low Pay Commission in full.
The Chair of the Low Pay Commission, Bryan Sanderson, stated: “The arguments on what to do with the NLW are finely balanced. Both employers and workers are worried about rising costs. For workers, an NLW rise normally guarantees their pay rises faster than prices, protecting their living standards. In the current context this is more important than ever. But for employers, rising wages are another bill alongside their energy, raw materials and other costs that can threaten jobs or may need to be passed on through higher prices…..It is Commissioners’ strong preference to recommend real-terms increases to the rates as long as they do not present a “significant risk” to employment chances.“
2nd April 2023
Another key part of the April 2023 rate changes are the increases in family friendly payments. These rate changes usually take effect on the first Sunday in April, which this year is set to be the 2nd April 2023. The rate increases 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 £172.48 per week (up from £156.66 per week) after the first 6 weeks.
- Statutory Paternity Pay – the smaller of £172.48 per week (up from £156.66 per week) or 90 per cent of their average weekly earnings per week
- Statutory Shared Parental Pay – the smaller of £172.48 per week (up from £156.66 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 £172.48 per week (up from £156.66 per week) after the first 6 weeks.
- Statutory Parental Bereavement Pay – the smaller of £172.48 per week (up from £156.66 per week) or 90 per cent of their average weekly earnings per week
The average gross weekly earnings required to qualify for Statutory Maternity Pay and these other family friendly payments remains at £123.00 or more.
Maternity Allowance will also increase from the 2nd April 2023, as part of the April 2023 rate changes. 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 will be entitled to Maternity Allowance for 39 weeks of the smaller of £172.48 or 90 per cent of their average gross weekly earnings per week (up from the smaller of £156.66 or 90 per cent of their average gross weekly earnings per week).
6th April 2023
Another key part of the April 2023 rate changes is Statutory Sick Pay (SSP), which from the 6th April 2023 will increase from £99.35 to £109.40 per week. The average gross weekly earnings required to qualify for SSP will remain at £123.00 or more.
The new rate for the statutory cap on a weeks pay for the purposes of calculating the basic award and statutory redundancy pay, plus the new rates for the Vento bands will also come into effect on the 6th April 2023. These rates are the only elements of the April 2023 rate changes that have yet to be published.
