Further to our previous article on the new Vento bands, we now provide a full round up of all the April 2024 rate changes.
April 2024 Rate Changes
The recent announcement in relation to the new Vento bands means that all of the April 2024 rate changes have now been published.
1st April 2024
The new rates in relation to the National Minimum Wage and the National Living Wage took effect on the 1st April 2024.
The increases in the National Minimum Wage and the National Living Wage were announced in advance of the 2023 Autumn Statement that was delivered by the Chancellor of the Exchequer, Jeremy Hunt, on the 22nd November 2023. The new rates 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
- 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
Within the announcement of the new rates for the National Living Wage and National Minimum Wage, it was confirmed that the age threshold for receiving the National Living wage will be reduced from 23 years of age to 21 years of age. Hence, all workers aged 21 and over will be entitled to be paid at least the National Living wage from the 1st April 2024, 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.
6th April 2024
Statutory Sick Pay (SSP) will increase from £109.40 to £116.75 per week on the 6th April 2024. The average gross weekly earnings required to qualify for SSP will remain at £123.00 or more.
The statutory cap on a weeks pay for the purposes of calculating the basic award and statutory redundancy pay will also increase on the 6th April 2024, from £643.00 to £700.00. The increase was announced via the release of The Employment Rights (Increase of Limits) Order 2024. Hence, the unfair dismissal basic award in employment tribunal cases will increase, and the maximum is now £21,000.00 (i.e. 20 x £700.00 x 1.5).
The maximum amount that can be awarded for the unfair dismissal compensatory award will also increase from £105,707.00 to £115,115.00 on the 6th April 2024.
As the statutory cap also applies when calculating statutory redundancy pay, the maximum is now £21,000.00 (i.e. 20 x £700.00 x 1.5). Hence, from the 6th April 2024, the amount of statutory redundancy pay an employee is entitled to is the number of weeks which can be taken into account multiplied by the lower of either their average weekly wage or £700.00.
The number of weeks which can be taken into consideration depends on how long the employee has been continuously employed by their employer for and how their years of continuous service relate to certain age bands. For each complete year of continuous service under the age of 22, they will receive half a week’s pay. For each complete year of continuous service between the ages of 22 and 40, they will receive one week’s pay. For each complete year of continuous service between the ages of 41 and above, they will receive 1½ weeks’ pay. The maximum number of years which can be taken into account is 20.
Finally, following the latest annual re-evaluation, the increases in the Vento bands will also take effect from the 6th April 2024.
The new rate for the top band of the Vento bands is £58,700.00 plus for exceptionally serious cases. For cases presented before the 6th April 2024, the band is £56,200.00 plus. In relation to the upper band, the band increases to £35,200.00 to £58,700.00 for serious cases. As regards cases presented before the 6th April 2024, the band is £33,700.00 to £56,200.00. The middle band will increase to £11,700.00 to £35,200.00. In relation to cases presented before the 6th April 2024, the band is £11,200.00 to £33,700.00. In terms of the lower band, it will increase to £1,200.00 to £11,700.00 for less serious and one-off cases. For cases presented before the 6th April 2024, the band is £1,100.00 to £11,200.00.
The Court in Vento stated that awards for less than the lower band should be avoided, and that remains the guidance.
7th April 2024
The new rates for family friendly payments were announced on the 22nd November 2023 and will take effect on the 7th April 2024. The increases will be 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 all of these benefits will remain at £123.00 or more.
Maternity Allowance will also increase from the 7th April 2024. 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).
