A lot of the April 2024 rate changes have now been published, the two exceptions being what the new statutory cap on a weeks pay will be for the purposes of calculating the basic award and statutory redundancy pay, and what the new Vento bands will be.
April 2024 Rate Changes
The April 2024 rate changes 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 2024 rate changes will take effect between the 1st – 7th April 2024.
1st April 2024
The first of the April 2024 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 2024. The new rates for these are as follows:-
- For workers aged 21 and over (i.e. the National Living Wage), the rate will increase by £1.02 per hour (9.8%) from £10.42 per hour to £11.44 per hour. The age threshold for receiving the National Living wage has been reduced from 23 years of age to 21 years of age, with those aged 21-22 years of age benefitting from an increase of £1.26 per hour (12.4%) from £10.18 per hour to £11.44 per hour
- For workers aged 18-20 inclusive, the rate will increase by £1.11 per hour (14.8%) from £7.49 per hour to £8.60 per hour
- For workers aged 16-17 inclusive, the rate will increase by £1.12 per hour (21.2%) from £5.28 per hour to £6.40 per hour
- The apprentice rate will increase by £1.12 per hour (21.2%) from £5.28 per hour to £6.40 per hour
- The daily rate for the accommodation offset will increase by £0.89 (9.8%) from £9.10 to £9.99
The Government has had a target to increase the National Living Wage to two thirds of median earnings by April 2024. With the increase to £11.44 per hour, the Government has hit that target
In setting the new rates 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: “We recommend a rate of £11.44 that should apply to those aged 21 and above. We expect this increase will meet the Government’s target of two-thirds of median earnings for those aged 21 and over by 2024. We believe this substantial increase will restore the real value that has been eroded through the recent cost of living crisis. Our judgement is that this increase will not significantly risk employment prospects.“
6th April 2024
A further key element of the April 2024 rate changes is Statutory Sick Pay (SSP): The proposed new rate was announced on the 22nd November 2023. The rate will increase from £109.40 to £116.75 per week. Whilst the announcement stated that the rate change will take effect on the 8th April 2024, the change normally comes into force on the 6th April each year.
7th April 2024
A further key part of the April 2024 rate changes are the increases in family friendly payments. The proposed new rates were announced on the 22nd November 2023. Whilst the announcement stated that these elements of the April 2024 rate changes will take effect on the 8th April 2024, the changes normally come into force on the first Sunday of April, which in 2024 will be the 7th April 2024. 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 £184.03 per week (up from £172.48 per week) after the first 6 weeks.
- Statutory Paternity Pay – the smaller of £184.03 per week (up from £172.48 per week) or 90 per cent of their average weekly earnings per week
- Statutory Shared Parental Pay – the smaller of £184.03 per week (up from £172.48 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 £184.03 per week (up from £172.48 per week) after the first 6 weeks.
- Statutory Parental Bereavement Pay – the smaller of £184.03 per week (up from £172.48 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 7th April 2023, as part of the April 2024 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 £184.03 or 90 per cent of their average gross weekly earnings per week (up from the smaller of £172.48 or 90 per cent of their average gross weekly earnings per week).
Yet To Be Announced
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 come into effect on the 6th April 2024. These rates are the only elements of the April 2024 rate changes that have yet to be published.
