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 April 2026.
Key Points
- From 6 April 2026, those who qualify for Statutory Maternity Pay or Statutory Adoption Pay will be entitled to 39 weeks’ pay at 90% of their gross weekly earnings, subject to a maximum of £194.32 per week (up from £187.18) after the first 6 weeks
- Statutory Paternity Pay, Statutory Shared Parental Pay, Statutory Parental Bereavement Pay and Statutory Neonatal Care Pay will be paid at £194.32 per week or 90% of average weekly earnings, whichever is lower
- The earnings threshold for these payments increases from £125.00 to £129.00 per week
- Statutory Sick Pay increases from £118.75 to £123.25 per week from 6 April 2026
- Wider SSP reforms (day-one entitlement, removal of the Lower Earnings Limit and new low-earner rules) are part of the Employment Rights Bill and remain proposals subject to Parliamentary approval
- Maternity Allowance will increase to £194.32 per week or 90% of average weekly earnings, whichever is lower, for up to 39 weeks for those who do not qualify for Statutory Maternity Pay but meet the work and earnings tests
- From 1 April 2026, the National Living Wage for workers aged 21 and over will rise to £12.71 per hour, with National Minimum Wage rates increasing to £10.85 (ages 18–20), £8.00 (ages 16–17) and £8.00 (apprentices), and the accommodation offset to £11.10 per day
New Rates: Statutory Maternity Pay & Other Family Friendly Payments
Family Friendly Payments – New Rates
The increased rates for Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay, Statutory Adoption Pay, Statutory Parental Bereavement Pay, and Statutory Neonatal Care Pay, will take effect on the 6th April 2026, 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, subject to a maximum of £194.32 per week (up from £187.18 per week) after the first 6 weeks.
- Statutory Paternity Pay – the smaller of £194.32 per week (up from £187.18 per week) or 90 per cent of their average weekly earnings
- Statutory Shared Parental Pay – the smaller of £194.32 per week (up from £187.18 per week) or 90 per cent of their average weekly earnings
- Statutory Adoption Pay – those who qualify are entitled to receive it for 39 weeks at a rate of 90% of their gross weekly pay, subject to a maximum of £194.32 per week (up from £187.18 per week) after the first 6 weeks.
- Statutory Parental Bereavement Pay – the smaller of £194.32 per week (up from £187.18 per week) or 90 per cent of their average weekly earnings
- Statutory Neonatal Care Pay – the smaller of £194.32 per week (up from £187.18 per week) or 90 per cent of their average weekly earnings
Earnings Threshold
The average gross weekly earnings required to qualify for Statutory Maternity Pay and the other family friendly payments will increase from £125.00 or more per week, to £129.00 or more per week.
Increase In Statutory Sick Pay (SSP)
As well as the increase in statutory maternity pay and the other family friendly payments, the new rate for statutory sick pay (SSP) was also announced.
The rate for SSP increases from £118.75 to £123.25 per week from the 6th April 2026.
In addition, major changes to SSP may come into force from April 2026. While the wider reforms to SSP described below form part of the Government’s Employment Rights Bill, these additional measures remain subject to Parliamentary approval and may be amended before they take effect. They are:-
- SSP becomes payable from the first day of sickness absence (rather than only from the fourth day).
- The Lower Earnings Limit (LEL) threshold is abolished - all employees will be eligible regardless of income level.
- For employees earning below the previous LEL, SSP will be calculated as the lower of either 80% of their average weekly earnings or the flat rate £123.25.
The fact that there has been a major U-turn on day-one unfair dismissal rights, highlights that the Employment Rights Bill is not yet set in stone as it were, and that there may be more changes to come, including on SSP.
Maternity Allowance & Statutory Maternity Pay
Current Rate
In terms of Maternity Allowance, currently where an employee earns less than £125.00 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 £187.18 or 90 per cent of their average gross weekly earnings.
New Rate
Maternity Allowance will also increase from the 6th April 2026. Where an employee earns less than £129.00 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 £194.32 or 90 per cent of their average gross weekly earnings.
Other Rate Rises
In addition to the announcements in relation to statutory maternity pay, the other family friendly payments, and SSP, increases in attendance allowance and the state pension were also announced at the same time.
National Living Wage / National Minimum Wage - New Rates
The new rates for the National Living Wage and the National Minimum Wage that will apply from the 1st April 2026 have also been announced and are as follows:-
- For workers aged 21 and over (i.e. the National Living Wage), the rate will increase by £0.50 per hour (4.1%) from £12.21 per hour to £12.71 per hour
- For workers aged 18–20 inclusive, the rate will increase by £0.85 per hour (8.5%) from £10.00 per hour to £10.85 per hour
- For workers aged 16–17 inclusive, the rate will increase by £0.45 per hour (6.0%) from £7.55 per hour to £8.00 per hour
- The apprentice rate will increase by £0.45 per hour (6.0%) from £7.55 per hour to £8.00 per hour
- The daily rate for the accommodation offset will increase by £0.44 (4.1%) from £10.66 to £11.10
