Employment Law Latest 2023: Updates For SME’s

As an SME employer, it can be challenging to keep pace with the ever-changing landscape of employment law. However, it is essential to keep up to date with new legislation and guidance to ensure compliance and mitigate risk to your business. In this blog post, we provide an overview of some of the recent UK employment law developments. Please do contact us for more information or if you have any questions.

View our informative pdf for more info.

Contact Spectrum HR Solutions today for expert advice and support:
Tel: 07880 518998
Email: naomi.cane@spectrumhr-solutions.co.uk
Or; caroline.gillespie@spectrumhr-solutions.co.ukction.


Increasingly, organisations are becoming truly invested in the welfare of their employees and understand that by contributing to their well-being, both the organisation and the individual benefit.  

In particular, managers are realising the importance of supporting women in the workplace through the unique challenges that they encounter. 

Menopause is a natural part of the aging process and occurs when the woman’s menstrual cycle stops, and they can no longer become pregnant – usually this happens around the ages of 45-55 years.  It will affect most women and individuals who have a menstrual cycle, including trans people and others. 

Why act now?

* Menopausal women are the fastest growing demographic in the workplace – their skills and experience are key to hold onto for employers, the labour market and the economy.
* 60% of women experiencing menopausal symptoms say it has a negative effect on their work
* 1 in 4 women have considered leaving work due to their menopause

For employers, the menopause is a health and wellbeing concern for staff and needs to be handled sensitively.  Wednesday 18 October 2023 is World Menopause Day, further raising awareness, so what might organisations consider to become Menopause Friendly Employers and create a better supported workplace for those going through this? 

It is essential for employers to be aware of the symptoms to appreciate the full extent of how some employees experience menopause. 

These symptoms can be both physical and psychological and include (but are not limited to) the following, all of which can have a negative impact on an individual’s work:
Headaches, migraines, dizziness, hot sweats, anxiety, brain fog, memory lapses, difficulty concentrating, night sweats, sleep problems, mood swings, gut problems, aching joints and muscles. 

Treatments that can help to manage symptoms are available from GPs and in the form of herbal remedies too. 

These symptoms can also be experienced during the time leading up to the Menopause (known as peri-menopause which can be from the early to mid-forties) and after menopause has occurred (known as post-menopause). 

Support does not need to be expensive or difficult, employers can make a big difference by offering a broader range of working options, considering simple adjustments to workplace environments based on an individual’s need and training line managers on how to be approachable for sensitive one-to-one conversations. 

Creating a positive and open environment at work will ensure that those experiencing menopausal symptoms that are impacting their ability to do their job, feel able to discuss their issues. This can help prevent that person:

• Feeling like they need to take time off work and hiding the reasons for it 
• Losing confidence in their skills and abilities 
• Developing mental health conditions such as stress, anxiety and depression 
• Leaving their job.

Employers should encourage the individual to discuss their symptoms with their GP for support and consider referrals to Occupational Health, if their GP/self-care is not working. 

Perceptions around menopause are changing and forward-thinking employers are committed to becoming menopause friendly workplaces.  

There is much to be gained from supporting individuals who are negatively impacted by their menopausal symptoms; retaining key and skilled employees, increased morale & loyalty and improved services, leading to profitability and a reputation as an organisation that prioritises staff wellbeing, equality, diversity and inclusion.  

Menopause friendly organisations are places where people want to work. 

Please let us know if we can help you implementing this within your organisation.

The Counteroffer Conundrum: Retaining Talent in a Competitive Labour Market

In today’s job market, where competition for top talent is fierce, retaining employees has become a top priority for many businesses. Retaining employees, however, is not as simple as it may seem. According to the latest CIPD Labour Market Outlook, UK employers are increasingly turning to counteroffers as a way of retaining key staff, as skills shortages persist.

This may seem like a quick fix, but it’s important to ensure that as an employer, you have a clear process for considering counteroffers.

The Report Findings

CIPD’s report on employers resorting to counteroffers sheds light on an increasing trend. Here’s a glimpse of the essential findings from the report:

The report revealed that 40% of UK employers have made a counteroffer in the past 12 months. Of those that had made a counteroffer, 38% matched the salary of the new job offer, and 40% offered even higher sums. Counteroffers are most prevalent in London (58% of London-based employers in the last 12 months) making it the ‘counteroffer capital’ of the UK.

• Of those employers that are using counteroffers as part of their retention strategy, more than half (51%) have increased the level of counteroffers they have given over the last 12 months.
• A quarter (25%) of employers who have used counteroffers previously anticipate the need to offer even more in the next 12 months, with only 8% anticipate offering fewer.
• Nearly half (45%) of employers believe counteroffers are effective in retaining employees for 12 months or more, compared to three in ten (29%) of employers who believe it is ineffective.
• Just one in five (22%) employers that make counteroffers have a formal policy regarding them.

The CIPD is urging employers to have a clear process for considering counteroffers, as part of a fair and transparent reward and recognition strategy that looks beyond pay. These strategies should consider the broader employer offering, for example:

• Flexible working
• Additional paid holiday
• Opportunities for career development
• Better pension contributions

Turnover and Retention – What You Need To Know

CIPD’s “Turnover and Retention Factsheet” provides a comprehensive overview of how to measure turnover and retention, and understand why people leave organisations. Here are some key takeaways:

Calculating Turnover Rates: Organisations can assess their turnover rates using a simple formula: (Number of employees who left / Average total number of employees) x 100. This metric helps companies quantify the extent of their employee attrition.

Monetary Implications: Employee turnover carries significant financial implications, including costs associated with recruitment, training, and onboarding. It can also disrupt team dynamics, leading to reduced productivity.

Holistic Retention Approaches: Organisations aiming to reduce turnover should implement a combination of strategies, such as providing competitive remuneration, enabling skill development and career advancement, recognising and rewarding achievements, and fostering a supportive workplace atmosphere.

Unveiling Insights Through Exit Interviews: Conducting thorough exit interviews can provide valuable insights into the factors driving employee departures. This information is invaluable in tailoring effective retention strategies.

Employee turnover and retention are critical issues for employers to address, particularly in today’s competitive labour market. CIPD’s research underscores the intricate relationship between employee turnover and retention strategies. While counteroffers can serve as a temporary solution, a more comprehensive approach to employee retention is essential for long-term success. By prioritising employees’ well-being, career growth, and job satisfaction, organisations can foster a culture where employees are motivated, engaged, and less inclined to explore external opportunities.

Here at Spectrum HR Solutions, we can ensure that you have the right people, with the right skills, in the right roles, at the right time. Contact us for expert HR support today:
Tel: 07880 518998
Email: naomi.cane@spectrumhr-solutions.co.uk

A Year of Change in Employment Law: 2023 Update

A Year of Change in Employment Law: 2023 Update

2023 has been a significant year for employment law in the UK, with several new laws gaining Royal Assent. Although many of these changes won’t come into force until 2024 or beyond, it’s crucial for employers to become acquainted with these new requirements and prepare for their implementation. Let’s explore the key updates in employment law for 2023.

Employment (Allocation of Tips) Act 2023

This Act, which received Royal Assent on 2 May 2023, will require employers to distribute 100% of tips, gratuities, and service charges fairly among their employees. Although the commencement date hasn’t been announced, it’s expected to be around a year after Royal Assent to allow time for secondary legislation and a new statutory Code of Practice.

Carer’s Leave Act 2023

Effective from 24 May 2023, the Carer’s Leave Act grants unpaid carers up to five days of leave per year to provide care or make arrangements for someone with long-term care needs. Employers can expect this law to be enforceable from April 2024, giving them time to adapt their processes and staffing levels.

Protection from Redundancy (Pregnancy and Family Leave) Act 2023

This Act, also effective from 24 May 2023, extends protection from redundancy to pregnancy, adoption, shared parental leave, and six months after. Detailed regulations are expected to follow “in due course.”

Strikes (Minimum Service Levels) Act 2023

Effective from 20 July 2023, this Act mandates minimum service levels for certain industries for lawful strike action. Specific minimum service levels will be determined through secondary legislation.

Neonatal Care (Leave and Pay) Act 2023

This Bill received Royal Assent on 24 May 2023. While the full implementation is expected by April 2025, some provisions may commence earlier. This Act allows new parents to take up to 12 weeks of paid leave to be with their hospitalised baby.

Workers (Predictable Terms and Conditions) Act 2023

This Act, effective from 18 September 2023, grants all workers, including those on zero-hours contracts, the right to request a predictable working pattern. Regulations are forthcoming, and a request can typically be made after 26 weeks of service.

Pensions (Extension of Automatic Enrolment) Act 2023

Effective from 18 September 2023, this Act lowers the age for automatic enrollment in pension schemes from 22 to 18. The Department for Work and Pensions will launch a consultation on implementing these changes.

Covid and Employment Law

While most Covid-related employment laws have been lifted, annual leave carryover for up to two years due to Covid impact remains in effect. However, it’s unlikely to apply now that restrictions have eased, and the government may appeal this.

Limiting the Spread of Viruses

As we head into autumn and flu season, it’s essential for employers to maintain virus prevention measures in the workplace. This includes hygiene practices, good ventilation, social distancing, encouraging vaccination, and remote working when necessary. Hybrid working arrangements can ease the transition to temporary remote work in case of illness.

What’s Next?

Covid remains a concern, and businesses must remain prepared to respond swiftly to prevent its spread within the workforce. Having clear policies, raising employee awareness, and educating line managers are crucial steps in managing contagious illnesses in the workplace.

Stay informed and proactive to ensure your organisation complies with these new employment laws and effectively manages health concerns in the evolving work environment.

If you need support or advice when it comes to understanding these Employment Law changes, contact us here at Spectrum HR Solutions today. We would be more than happy to help your business.
Tel: 01903 530966
Email: naomi.cane@spectrumhr-solutions.co.uk

Statutory rates 2022

Statutory sick pay

PaymentFrom 6 April 2020From 6 April 2021From 6 April 2022
Statutory sick pay£95.85£96.35£99.35
Lower earnings limit (per week)£120£120£123

National minimum wage

AgeFrom 1 April 2020From 1 April 2021From 1 April 2022
Workers aged 25 and over (National Living Wage)*£8.72 an hour
Workers aged 23 and over (National Living Wage)*£8.91 an hour£9.50 an hour
Workers aged 21–24*£8.20 an hour
Workers aged 21-22*£8.36 an hour£9.18 an hour
Development rates for workers aged 18–20£6.45 an hour£6.56 an hour£6.83 an hour
Young workers rate for workers aged 16–17£4.55 an hour£4.62 an hour£4.81 an hour
Apprentices under 19, or over 19 and in first year of the apprenticeship£4.15 an hour£4.30 an hour£4.81

Voluntary living wage

 London Living WageUK Living Wage
2018/19£10.55 an hour£9.00 an hour
2019/20£10.75 an hour£9.30 an hour
2020/21£10.85 an hour£9.50 an hour 
2021/22£11.05 an hour£9.90 an hour

These rates are reviewed and updated annually each November. Employers signed up to the scheme have 6 months to implement the increase. 

Minimum auto-enrolment contributions

Timing    Minimum total percentage to be paid into pensionMinimum employer contributionMinimum employee contribution
6 April 2018 – 5 April 20195 per cent2 per cent3 per cent
6 April 2019 onwards8 per cent3 per cent5 per cent

Disclosure and barring fees

Basic DBS check£23
Enhanced DBS check£40
Standard DBS check£23
DBS adult first check£6
Registration application£300
Update service (annual)£13

National insurance contribution thresholds

£ per week (unless stated)2021 – 20222022 – 2023
Lower earnings limit, primary Class 1£120£123
Upper earnings limit, primary Class 1£967£967
Upper secondary threshold for under 21s (from April 2015)£967£967
Primary threshold£184£190
Secondary threshold£170£175
Class 2 rate£3.05£3.15
Small earnings exception (replaced by Small profits threshold from 6 April 2015)£6,515 pa£6,725
Special Class 2 rate for volunteer development workers£6.00£6.15
Class 3 rate£15.40£15.85
Class 4 rate lower profits limit£9,568£9,880
Class 4 rate upper profits limit£50,270£50,270

These rates are reviewed and updated annually each April.

Family-friendly payments

PaymentsFrom 5 April 2020From 4 April 2021From 3 April 2022
Statutory shared parental pay (ShPP) Statutory rate or 90% of employee’s weekly earnings if this is lower.£151.20£151.97£156.66
Statutory maternity pay (SMP) First six weeks – 90% of employee’s average weekly earnings. Remaining weeks at the statutory rate or 90% of employee’s weekly earnings if this is lower.£151.20£151.97£156.66
Statutory adoption pay (SAP) First six weeks – 90% of employee’s average weekly earnings. Remaining weeks at the statutory rate or 90% of employee’s weekly earnings if this is lower.£151.20£151.97£156.66
Statutory paternity pay (SPP) Statutory rate or 90% of employee’s weekly earnings if this is lower.£151.20£151.97£156.66
Statutory parental bereavement pay (SPBP)                               Statutory rate or 90% of employee’s weekly earnings if this is lower.£151.20£151.97£156.66

These rates are reviewed and updated annually each April. In order to qualify for these payments, workers must earn over the lower earnings limit

Compensation limits

Payments                                                From 6 April 2020From 6 April 2021From 6 April 2022
Limit on guarantee payments£30£30£31
Limit on a week’s pay for calculating redundancy and unfair dismissal basic award£538£544£571
Maximum basic award for unfair dismissal and statutory redundancy payment (30 weeks’ pay subject to the limit on week’s pay)£16,140£16,320£17,130

Forthcoming Legislation

 24th March 2022The COVID-19 provisions within the Statutory Sick Pay and Employment and Support Allowance regulations will be removed.  This includes SSP payments for those isolating (unless too unwell to work), and the payment of SSP from day 1.  All claims under the SSP rebate scheme for covid-related sickness must be submitted, and all amendments to claims made before this date
6th  April 2022The ability to manually check the status of those with a biometric residence card or permit, or frontier work permit, will be removed. From that date, only online checks will be possible. In order to complete these checks, the employer will need the individual’s date of birth and right to work share code. 
6 April 2022The following rates will increase:  SSP as above Compensation limits, statutory guarantee pay and weekly redundancy payments  National insurance contributions will increase by 1.25%
6 April 2022HMRC has asked that payslips include a message to say “1.25% uplift in NICs funds;  NHS, health & social care.” This is in place until 5 April 2023. Itemised pay statement Letter to all employees regarding the increase
6 April 2022The lower earnings limit will increase for the first time in two years, to £123
15 May 2022Final date for implementation of voluntary living wage increase
1 October 2022A permanent system of digital right to work checks will replace temporary covid measures.

Flexible furlough

Flexible furlough is available form 1 July, enabling furloughed workers to return to work on a flexible part time basis. 

Up until the JRS (job retention scheme) closes on 31 October, these employees will be entitled to receive:

·   Their full contractual pay in relation to any part-time hours worked; and

·   80 percent of their reference salary (capped at £2,500 per month pro rata) in respect of their non-working time/on furlough leave.

  • from 1 August 2020 employers will no longer be able to claim the JRS grant in respect of any employer’s NIC and pension contributions. The Company will be liable to pay these.
  • Employers must still pay employees at least 80 percent of their reference pay subject to a cap of £2,500 per month pro rata in respect of non-working hours on furlough leave:
  • From 1 September the JRS grant will fall to 70 percent of reference salary (subject to a monthly cap of £2,187.50, which will reduce in proportion to any part-time hours worked/paid); and
  • From 1 October the JRS grant will further reduce to 60 percent of reference salary (subject to a monthly cap of £1,875, which will again reduce in proportion to any part-time hours worked/paid).

Employers will therefore bear an increasing portion of pay for their furloughed workers’ non-working hours.

Where the employer agreed to make any discretionary ‘top up’ payments (above 80%)  to furloughed workers, the cost of these payments – and the associated employer’s NIC and pension contributions – will be borne by the employer as at present.

What are the practical implications?

The flexibility in the new JRS, creates further complexity.

Employee eligibility and flexible furlough

Employees must have been furloughed for at least three weeks prior to 1 July in order to participate in the new scheme, if an employer intends a worker who has not previously been on furlough to be eligible for the JRS after 30 June, that employee must be furloughed for the first time by 10 June at the latest.

This will require careful planning and quick adjustments, and will mean that important decisions which affect individuals’ ongoing eligibility for the scheme must be made beforeHMRC’s guidance is published on 12 June.

Employers must also enter into new written furlough agreements with employees who are to work on a part time basis whilst furloughed.  Please let me know if you need a template for this.  This must be done in accordance with existing employment law. 

In developing flexible furlough plans, employers should ensure their criteria for selecting which furloughed workers will return to work part time – and what hours they work – are fair, reasonable and objective and neither directly, nor indirectly, discriminatory.

Be aware,  returning to work part time might potentially leave some employees at a financial disadvantage. This could be the case where, for example, historical overtime forms a significant part of the reference pay on which furlough payments are based, but similar levels of overtime are not currently available. Cases like this will require careful handling and sensitive employee communications.

Calculating and submitting claims

Claims under the new JRS can be submitted from 1 July, and the last claims under the existing scheme must be submitted by 31 July.

When submitting claims in respect of an employee on flexible furlough, the employer will be required to include information on actual hours worked, as well as the usual hours that the employee would have been expected to work under their contract in the relevant claim period. This information will feed into the calculation of the maximum JRS grant. We expect that the 12 June guidance will deal with the calculation of those hours which, for those with irregular hours, may be quite complex.

A minimum claim period of one week will apply under the new JRS, though claims can still be submitted in respect of longer periods. However, claim periods will no longer be able to overlap calendar months.

Importantly, from 1 July the number of employees included in a claim cannot exceed the highest number of employees included in a claim submitted under the current scheme.

When will the details be available?

As noted above, HMRC is expected to publish further guidance on 12 June which addresses flexible furlough

Updates to HMRC’s guidance
HMRC also published several updates to their JRS guidance on 14 May 2020.

These include:

  • Clarification that claims cannot be submitted more than 14 days before the end of the relevant claim period;
  • Confirmation that participating employers must retain their relevant records for six years for possible HMRC review; and
  • Guidance on what overtime payments and other ‘non-discretionary payments’ can be included in JRS reference pay.

This last point is an important clarification, as previously it was uncertain what constituted ‘non-discretionary overtime’, which should be included when calculating furloughed workers’ minimum salary payments and the associated JRS grants. HMRC’s guidance now confirms that, overtime payments can be included where the employer was contractually obliged to pay the employee at a set and defined rate for the overtime worked (rather than where the employer was contractually obliged to offer the overtime on a voluntary basis).

The updated guidance also confirms that other contractually enforceable variable payments (e.g. shift allowances) should be included in reference pay.

The treatment of overtime, allowances and similar payments requires careful consideration, and employers should assess the basis on which they calculate their JRS claims in light of this updated guidance.  Employers should also consider whether any amendments to past claims might be required once HMRC have introduced this functionality into their JRS portal.

What should employers do?
Extension of the JRS is clearly welcome, and employers will urgently need to consider how the support available affects decisions in relation to managing its workforce. 

In particular, if it is indeed the case that employees can only be furloughed over August to October if they were on furlough at the end of July, employers will need to assess the extent to which they might require support from the JRS over the coming five to six months, and plan which employees to furlough – and when – accordingly. This work will need to be undertaken in the coming weeks in order to put plans into action in when the new scheme rules come into force.

Other practical steps that employers who do or might participate in the JRS can take now include:

  • Reviewing existing agreements with employees – do existing agreements with employees need to be revised to allow the possibility of furlough continuing into July and beyond? The template sent through previously if the current terms have not changed.
  • Getting people back to work – what staffing requirements are forecast from now until the end of October, and is it appropriate to bring furloughed workers back into the business on a full or part time basis?
  • Thinking about workforce requirements – does the extension of the JRS affect any planned headcount reductions? Consider implications if the ongoing costs cannot be covered by the company; Do you need to consider restructuring, reducing headcount,  commencing redundancy consultations.
  • Modelling different levels of employer contributions – what level of subsidy can the business afford? If discretionary payments are currently made over and above furloughed workers’ minimum entitlements, could this continue or should the position be renegotiated to 80%.
  • Checking claims – for many employers, calculating their current JRS claims is not straightforward, with common difficulties including:
    • Establishing the correct components of furloughed workers’ reference pay (in particular, employers should review past claims in light of HMRC’s recently updated guidance);
    • Identifying ‘fixed’ or ‘variable’ rate employees in order to calculate the grant correctly (‘fixed’ rate employees are defined in a similar way to ‘salaried’ workers for National Minimum Wage purposes, which is not always easy to apply in practice); and
    • Making deductions from payments to employees (furloughed workers must receive their entire minimum furlough payment in cash, and any deductions made by the employer must be carefully considered to ensure this condition is met).
  • Reviewing JRS compliance – are processes and controls robust enough to withstand HMRC review, and can they cope with the additional complexities the prospective changes will introduce?

Please let me know how I can help support you through this challenging time.

CIPD Chartered Membership

Forthcoming changes

This table shows forthcoming changes. 

1 April 2020 Increase to national living/minimum wage rates
5 April 2020 Increase to statutory maternity pay, paternity pay, adoption pay and shared parental pay
6 April 2020 Increase to statutory sick pay (SSP) rate
6 April 2020 Changes to taxation of termination payments
6 April 2020 New law prohibiting use of Swedish derogation agency contracts takes effect
6 April 2020 New law lowering the threshold required for information and consultation requests takes effect
6 April 2020 New day-one right to a written statement of main terms and conditions for workers and employees comes into force
6 April 2020 Amendments to mandatory information required within a statement of main terms and conditions comes into force
6 April 2020 New law extending the holiday pay reference period to 52 weeks takes effect
6 April 2020 New law requiring employment businesses to provide all agency workers with a Key Information Document takes effect
6 April 2020 IR35 update: large and medium sized organisations in the private sector who engage contractors through intermediary companies will be responsible for assessing the employment status of those contractors.
6 April 2020 Parental Bereavement Leave is to be introduced
30 April 2020 Deadline for agency workers on Swedish derogation agency contracts to be provided with an explanatory statement

For further information please contact us. 

Rolled Up Holiday Pay

When employers (or agencies) refer to ‘rolled up’ holiday pay, they normally mean paying an additional sum of money on top of a worker’s hourly rate when they are working, to cover the equivalent of their annual holiday pay.

The courts have ruled that rolled up holiday pay is unlawful, as it is a disincentive for workers to take their holidays. This is because the worker is not paid when they are actually on holiday but receives a higher rate of pay when they are working. The statutory minimum holiday entitlement (currently 5.6 weeks in the UK) is there for health and safety reasons, as workers need time away from work to rest.

The ruling stated that Rolled up holiday pay as being unlawful, as the holiday pay should be paid when a worker is actually taking their holiday. Having said that, where rolled up holiday payments are made and are clearly identified on a worker’s pay slip as holiday pay, those payments would be offset against any holiday pay claim.

Employers have an obligation to ensure that workers are taking at least the minimum statutory holiday and, if this is not happening, the Health and Safety Executive can take action.

Statutory Rates

Statutory Rates

National minimum wage

Age From 1 October 2016 From 1 April 2017 From 1 April 2018 From 1 April 2019 From 1 April 2020
Workers aged 25 and over (National Living Wage) £7.20 an hour £7.50 an hour £7.83 an hour £8.21 an hour £8.72 an hour
Workers aged 21–24 £6.95 an hour £7.05 an hour £7.38 an hour £7.70 an hour £8.20 an hour
Development rates for workers aged 18–20 £5.55 an hour £5.60 an hour £5.90 an hour £6.15 an hour £6.45 an hour
Young workers rate for workers aged 16–17 £4.00 an hour £4.05 an hour £4.20 an hour £4.35 an hour £4.55 an hour
Apprentices under 19, or over 19 and in first year of the apprenticeship £3.40 an hour £3.50 an hour £3.70 an hour £3.90 an hour £4.15 an hour

These rates are reviewed and updated annually each April.

Voluntary living wage

  London Living Wage UK Living Wage
2014/15 £9.15 an hour £7.85 an hour
2015/16 £9.40 an hour £8.25 an hour
2016/17 £9.75 an hour £8.45 an hour
2017/18 £10.20 an hour £8.75 an hour
2018/19 £10.55 an hour £9.00 an hour
2019/20 £10.75 an hour £9.30 an hour

These rates are reviewed and updated annually each November.

Minimum auto-enrolment pension contributions, when applicable to the employer

Timing     Minimum total percentage to be paid into pension Minimum employer contribution Minimum employee contribution
6 April 2018 – 5 April 2019 5 per cent 2 per cent 3 per cent
6 April 2019 onwards 8 per cent 3 per cent 5 per cent

Statutory sick pay

Payment From 6 April 2017 From 6 April 2018 From 6 April 2019 From 6 April 2020
Statutory sick pay £89.35 £92.05 £94.25 £95.85
Lower earnings limit (per week) £113 £116 £118 TBA

These rates are reviewed and updated annually each April.

Family-friendly payments

Payments From 2 April 2017 From 1 April 2018 From 7 April 2019 From 5 April 2020
Statutory shared parental pay (ShPP) Statutory rate or 90% of employee’s weekly earnings if this is lower. £140.98 £145.18 £148.68 £151.20
Statutory maternity pay (SMP) First six weeks – 90% of employee’s average weekly earnings. Remaining weeks at the statutory rate or 90% of employee’s weekly earnings if this is lower. £140.98 £145.18 £148.68 £151.20
Statutory adoption pay (SAP) First six weeks – 90% of employee’s average weekly earnings. Remaining weeks at the statutory rate or 90% of employee’s weekly earnings if this is lower. £140.98 £145.18 £148.68 £151.20
Statutory paternity pay (SPP) Statutory rate or 90% of employee’s weekly earnings if this is lower. £140.98 £145.18 £148.68 £151.20
Lower earnings limit (per week) £113 £116 £118 TBA

These rates are reviewed and updated annually each April.

National insurance contribution thresholds

£ per week (unless stated) 2017 – 2018 2018 – 2019 2019 – 2020
Lower earnings limit, primary Class 1 £113 £116 £118
Upper earnings limit, primary Class 1 £866 £892 £962
Upper secondary threshold for under 21s (from April 2015) £866 £892 £962
Primary threshold £157 £162 £166
Secondary threshold £157 £162 £166
Class 2 rate £2.85 £2.95 £3
Small earnings exception (replaced by Small profits threshold from 6 April 2015) £6,025 pa £6,205 pa £6,365 pa
Special Class 2 rate for volunteer development workers £5.65 £5.80  
Class 3 rate £14.25 £14.65 £15
Class 4 rate lower profits limit £8,164 pa £8,424 pa £8,632 pa
Class 4 rate upper profits limit £45,000 pa £46,350 pa £50,000 pa

These rates are reviewed and updated annually each April.