In April 2021, the following key statutory payment rates are set to increase:
National Minimum Wage and National Living Wage
From 1st April 2021, the National Minimum Wage and National Living Wage are set to increase. There will also be a change in relevant age for National Living Wage:
- £8.91 per hour for ages 23 and above
- £8.36 per hour for ages 21 to 24
- £6.56 per hour for ages 18 to 20
- £4.62 per hour for ages 16 – 17
- £4.30 per hour for apprentices
Employers that fail to pay National Minimum Wage will be named in the Department of Business, Energy and Industrial Strategy annual press release. You can read more about the naming scheme here.
Statutory Redundancy Pay / Unfair Dismissal Basic Award
Statutory redundancy payments are calculated based on an employee’s age, years of service and weekly pay, which is capped. These payments may be higher due to the cap on a week’s pay being increased from £538 to £544. The same formula is used to calculate the basic award in unfair dismissal claims.
The maximum statutory redundancy payments and basic award will also increase from £16,140 to £16,320. The compensatory award in unfair dismissal claims is also increasing from 88,519 to £89,463.
Compensation Bands for Discrimination
From 6th April 2021, the bandings for injuries to feelings award in discrimination claims, known as the Vento bands, are to increase:
- The lower band (less serious cases) will increase from between £900 to £9,000 to between £900 and £9,100.
- The middle band (more serious cases) will increase from between £9,000 to £27,000 to between £9,100 and £27,400 and
- The top band (most serious cases) will increase from between £27,000 to £45,000 to between £27,400 and £45,600.
Exceptional cases can, however, exceed £45,600.
Failure to Provide Written Statement of Particulars
The majority of written particulars must be provided in a single document (usually a contract of employment) on or before the date on which the employment starts. Failure to do so could result in an award being made against an employer.
Where a worker is successful in a separate claim, a worker can claim an additional award for failure to provide written particulars. Where this is the case, the Employment Tribunal must make an award of the minimum amount of two weeks’ pay and may, if it considers it just and equitable, award up to four weeks’ pay.
However, these sums are capped. Limits on awards for failure by an employer to provide a written statement of particulars is set to increase from £1,076 to £1,088 for two weeks’ pay and from £2,152 to £2,176 for four weeks’ pay.
Statutory Sick Pay
Statutory sick pay is to increase from £95.85 to £96.35 per week.
Family Related Payments
From 4th April 2021, the following family-related payments are to increase from £151.20 to £151.97 per week:
- Statutory maternity pay
- Statutory paternity pay
- Statutory adoption pay
- Shared parental pay
- Statutory parental bereavement pay
Here to Help
If you would like further information or advice on National Minimum Wage and National Living Wage, please contact our Employment Team on 0161 941 4000 or email The Employment Team for more information.