Following the publication of the policy paper “Benefit and Pension Rates 2023 to 2024”, the Department for Work and Pensions (DWP) published its proposed increases to several statutory benefit payments in December 2022. On 14 March 2023, the Social Security Benefits Up-rating Order 2023 (SI 2023/316) was formally implemented. It increases the rate of statutory sick pay from 6 April 2023 and statutory maternity, paternity, adoption, shared parental and parental bereavement pay from 2 April 2023 in England, Wales and Scotland.
The following rates will now apply from those dates in April 2023:
| Statutory sick pay (SSP) | £109.40 per week (up from £99.35) |
| Statutory maternity pay (SMP) | £172.48 per week (up from £156.66) |
| Statutory paternity pay (SPP) | £172.48 per week (up from £156.66) |
| Statutory shared parental pay (ShPP) | £172.48 per week (up from £156.66) |
| Statutory adoption pay (SAP) | £172.48 per week (up from £156.66) |
| Statutory parental bereavement pay (SPBP) | £172.48 per week (up from £156.66) |
The new rates represent an increase of 10.1% on the rates applicable for 2022/2023.
Further, the National Minimum Wage increased this month following a House of Commons debate on the National Minimum Wage (Amendment) Regulations 2022. With effect from 1 April 2023, the National Living Wage and Minimum Wage are:
| 23 and over (National Living Wage) | £10.42 (an increase of 9.7% from £9.50) |
| National Minimum wage (21-22) | £10.18 (an increase of 10.9% from £9.18) |
| National Minimum Wage (18-20) | £7.49 (an increase of 9.7% from £6.83) |
| National Minimum Wage (under 18) | £5.28 (an increase of 9.7% from £4.81) |
| Apprentice Rate | £5.28 (an increase of 9.7% from £4.81) |
To discuss what these changes mean and how they may affect your business, please contact a member of our team.
