Employment law insights

New tax year – new payment and compensation rates

Tribunal Awards

From 6 April 2026, compensation caps will be increased as follows:

*This figure is used to calculate statutory redundancy pay and the basic award for unfair dismissal claims.

**At present, the maximum amount of compensatory award which can be obtained in a successful claim for unfair dismissal is the lower of either a years’ pay or the statutory cap. However, from 1 January 2027, the cap for the compensatory award is going to be removed entirely.

Statutory Payments

From 6 April 2026, the following payments will also increase from £187.18 to £194.32 per week:

• statutory maternity pay (after the first six weeks);

• statutory paternity pay;

• statutory adoption pay;

• statutory shared parental pay;

• statutory parental bereavement pay; and

• statutory neonatal care pay.

The National minimum wage also changes annually (but inconsistently on 1 April rather than 6 April). The new rates are as follows:

Employment law insights