New statutory payment rates announced for 2026-27

Background

The government has confirmed planned increases to statutory payments from April 2026. These include statutory sick pay, family-related payments and the new statutory neonatal care pay. The updated figures reflect a 3.8% rise in line with CPI to September 2025.

What is changing

From April 2026, statutory sick pay will increase to £123.25 a week. Statutory maternity pay, maternity allowance, adoption pay, paternity pay, shared parental pay, neonatal care pay and parental bereavement pay will rise to £194.32 a week. The lower earnings limit for qualification (except for maternity allowance) will increase to £129 a week; the maternity allowance threshold remains at £30.

National minimum wage rates for April 2026 were announced separately on 25 November 2025.

Learning points for employers

These changes will affect payroll costs, family leave budgets and HR systems from the start of the 2026–27 tax year. Employers should review their policies, model the impact of the new rates and ensure payroll software is updated in good time. Communication with line managers and staff may also be helpful where family-related entitlements or sickness absence processes rely on accurate understanding of statutory pay levels.

For more information or advice, please contact Georgia Blesson in our Employment team.