The Department for Work and Pensions has published the government’s proposed annual increases to certain statutory payments.
These rates are expected to apply from 5 April 2020. Although, technically, the figures remain subject to change, in practice changes are not usually made at this stage. The publication therefore provides HR professionals, employers and employees a fairly firm indication of the likely increases, enabling budgets to be set accordingly.
| Current Rate | Proposed 2020/21 Rate | |
| Weekly rate of Statutory Sick Pay (SSP) | £94.25 | £95.85 |
| Weekly rate of Statutory Maternity Pay (SMP) | £146.81 | £151.20 |
| Weekly rate of Statutory Paternity Pay (SPP) | £146.81 | £151.20 |
| Weekly rate of Statutory Shared Parental Pay (ShPP) | £146.81 | £151.20 |
| Weekly rate of Statutory Adoption Pay (SAP) | £146.81 | £151.20 |
The draft National Minimum Wage (Amendment) Regulations 2020 have also been put forward. The draft regulations will come into force on 1 April 2020 and increase the hourly rates of the national living wage and national minimum wage. These increases are shown below.
| Current Rate | Proposed 2020/21 Rate | |
| National Living Wage for workers aged 25 and over | £8.21 | £8.72 |
| National Minimum Wage for 21 to 24-year-olds | £7.70 | £8.20 |
| National Minimum Wage for 18 to 20-year-olds | £6.15 | £6.45 |
| National Minimum Wage for 16 to 17-year-olds | £4.35 | £4.55 |
| Apprentice rate for those under 19, or in the first year of an apprenticeship | £3.90 | £4.15 |
Also from 1 April 2020, the accommodation offset allowance for minimum wage purposes will increase from £7.55 to £8.20 per day.
