Most changes under the Employment Rights Act 2025 will take effect in 2026 and 2027. However, a first set of trade union reforms April marks the month each year where changes to statutory rates come into force. Most rate changes take effect from 6th April (to align with the start of the new tax year). 

The statutory rates for family leave, sick pay, redundancy and the cap on unfair dismissal compensatory awards are, from 6th April 2026, as follows:

Statutory Payment Rate
Statutory maternity pay £194.32 per week
Statutory paternity pay £194.32 per week
Statutory shared parental pay £194.32 per week
Statutory adoption pay £194.32 per week
Statutory parental bereavement pay £194.32 per week
Statutory neonatal care leave pay £194.32 per week
Statutory sick pay £123.25 per week
Statutory guarantee pay £41 per day
Statutory redundancy pay £751 per week
Maximum compensatory award for unfair dismissal * £123,543

*Under Employment Rights Act 2025 changes, due to take effect from January 2027, the cap on the compensatory award for unfair dismissal will be removed in its entirety. The figure in this table applies to all dismissals from 6th April 2026 until this change comes into effect.

The average gross weekly earnings required to qualify for the various forms of family leave pay will also increase from £125.00 or more per week, to £129.00 or more per week from 6th April 2026.  

The amounts in the table above represent the minimum requirements. They may be replaced by higher payments if the employer chooses to offer more voluntarily or is required to do so under the employee’s contract.

About Jon Dunkley

Jon Dunkley is a Partner at Wollens and heads up the firm’s Regulatory Department. Based at our North Devon office, Jon is a highly experienced solicitor with a broad commercial and regulatory practice, supporting businesses, professionals and senior employees across a wide range of legal issues.

Speak to Jon Dunkley

Jon is a Partner at Wollens and can advise you. Contact Jon via email jon.dunkley@wollens.co.uk or call 01271 341021.

Jon Dunkley - Wollens Solicitors Devon

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