Government Announces Increase of Benefit Payments
The government has announced plans to increase a number of statutory benefit payments as of April 2018.
The increases will cover the following:
- statutory maternity, paternity, adoption and shared parental pay, as well as the maternity allowance, all of which will be raised from £140.98 a week to £145.18
- statutory sick pay which will be raised from £89.35 to £95.05 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 Ministerial Written Statement which announced the increases suggests that the changes will take place during the week beginning 9 April 2018.
Best Practice
Employers should take note of the increased rates in order to plan budgets for 2018/19. We advise that you also review your policies and other documents allowing ahead of the implementation of the new rates.