The Department for Work and Pensions (DWP) recently published the proposed increases to state pension and statutory benefit rates for 2022/23. The rates for the following statutory benefits are expected to increase, from April 2022, as follows:
- The weekly rate of statutory sick pay (SSP) from £96.35 to £99.35
- The weekly rates of statutory maternity pay (SMP) and maternity allowance from £151.97 to £156.66
- The weekly rates of statutory paternity pay (SPP), statutory adoption pay (SAP) and shared parental pay (ShPP) from £151.97 to £156.66
As a quick reminder, the hourly national minimum wage (NMW) rates that will apply from 1 April 2022 were confirmed earlier this year in the Autumn Budget, as follows:
- National Living Wage (NLW) for those over 23 will increase from £8.91 to £9.50
- The NMW for 21 to 22 year olds will increase from £8.36 to £9.18
- The NMW for 18 to 20 year olds will increase from £6.56 to £6.83
- The NMW for 16 to 17 year olds will increase from £4.62 to £4.81
- The apprentice rate will increase from £4.30 to £4.81
If your parental leave policies or staff handbook specifically mention any of the above rates, these will need reviewing and in due course updating. It is also important to ensure that working arrangements and patterns do not inadvertently impact your organisation’s ability to comply with the national minimum wage obligations.
If you would like to discuss changes to your family leave and sickness policies or are considering a NMW audit or review, please contact your usual member of our team, or Kathryn Dooks.