New statutory rates for 2026

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 6^th 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 6^th April 2026, as follows:

*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 6^th 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 6^th 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.

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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.

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