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April 2018 Increase to Statutory Benefit Payments

on Friday, 16 February 2018.

Following government plans announced in December last year, the draft Social Security Benefits Up-rating Order 2018 has been published.

As we previously reported the Order will increase a number of statutory benefit payments as of April 2018:

  • From 1 April 2018, statutory maternity, paternity, adoption and shared parental pay (as well as the maternity allowance from 9 April 2018) will be raised from £140.98 a week to £145.18.

  • From 6 April 2018, statutory sick pay which will be raised from £89.35 to £92.05 a week. In order to be entitled to statutory sick pay the employee's average earnings must be equal to or more than the lower earnings limit, which will increase to £116 in April 2018.

These increases are in line with the usual yearly rate increase according to the consumer price index. The figures are no longer subject to the 1% pay cap that had been applied since 2013.

Best Practice

Employers should take note of the increased rates in order to plan budgets for 2018/19 and review any relevant policies or other documentation  prior to the implementation of the new rates.

For more information please contact Eleanor Boyd in our Employment law team on 020 7665 0940.

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