The April 2024 rate changes and the gender pay gap reporting deadlines are now just a couple of months away. Most of the April 2024 rate changes have already been announced, with the final elements due to be released in March 2024.
Gender Pay Gap Reporting Deadlines
Gender pay gap reporting deadlines need to be met each year by those organisations with a headcount of 250 or more employees. This year, the deadline for public sector employers to report their data will be the 30th March 2024, with a snapshot date of the 31st March 2023. And for private sector employers and voluntary organisations, the deadline will be the 4th April 2024, with a snapshot date of the 5th April 2023.
Last year, 10841 employers lodged gender pay gap reporting data. However, with 2 months to the dealines lapse, as at the 28th January 2024, just 1243 employers have done so thus far (which equates to only 11.47%).
Historically, nevertheless, employers have left their gender pay gap data reporting late. For the 2018/19 reporting year, for instance, as at the 24th February 2019, just 1251 employers had reported their data.
Those employers who fail to submit their gender pay gap data on time face enforcement action. Private sector employers are subject to investigation under section 20 of the Equality Act 2006, and are then issued with an unlawful act notice. If they fail to comply with the notice, then the Equality and Human Rights Commission (EHRC) can apply for a court order requiring them to do so. Should the employer breach that court order, then this is punishable upon conviction with a level 5 (unlimited) fine.
Furthermore, once a case reaches the investigation stage, then details are published on the EHRC’s website at the start of the investigation. The final report that the EHRC produces is also published on their website. In the 2018/19 reporting year, 47 employers were named and shamed in this manner. Nevertheless, as each year has gone by, compliance levels have increased, with the numbers of employers being named and shamed falling. In the 2021/22 reporting year, for example, the number had fallen to 28, whilst last year, there were just 8.
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
6th April 2024
A further key element of the April 2024 rate changes is Statutory Sick Pay (SSP): The new rate was announced on the 22nd November 2023. The rate will increase from £109.40 to £116.75 per week.
7th April 2024
Another part of the April 2024 rate changes are the increases in family friendly payments. The new rates were announced on the 22nd November 2023 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 £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).
Not Yet 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. It is anticipated that these final elements of the April 2024 rate changes will be announced in March 2024.
