Changes afoot for Employment Tribunal awards and statutory payments

On 16 March 2026, it was announced that the limits which apply to certain Employment Tribunal awards will increase from 6 April 2026. In addition, the rates for various statutory payments will increase in April 2026. 

Below, we break down what these announcements will mean for employers and employees. 

Increase in Employment Tribunal awards

The following increases in the current limits will take effect on 6 April 2026

• The limit on a week’s pay, which is used to calculate, for example, statutory redundancy payments and basic awards, will increase from £719 to £751.
• The maximum compensatory award for unfair dismissal will increase from £118,223 to £123,543. The available award is the lower of the statutory limit and 52 weeks’ pay. Note that the Employment Rights Act 2025, which received Royal Assent in December 2025, proposes to remove this cap entirely from 1 January 2027. 
• The minimum basic award for some unfair dismissal claims, for example those relating to health and safety and certain trade union matters, will increase from £8,763 to £9,157.
• The limit on compensation awards, relating to failures to have a tips policy or to fairly allocate and distribute tips, will increase from £5,135 to £5,366.
• Statutory guarantee pay, which is payable during periods of lay-off and short-time working, will increase from £39 to £41 per day.
• The mandatory award for unlawful inducement relating to trade union membership or activities, or for unlawful inducement relating to collective bargaining, will increase from £5,735 to £5,993. 

For unfair dismissal claims, these new limits will apply where the dismissal takes effect on or after 6 April 2026. 

Note also that the protective award for a failure to collectively consult is due to rise on 6 April 2026 from 90 days’ gross pay per dismissed employee to 180 days’ gross pay (although we still await confirmation on this at the time of writing). 

Statutory payments

The following statutory payments will increase in April 2026 (all the figures below are gross weekly figures):

• Statutory maternity pay will increase from £187.18 to £194.32 on 5 April 2026.
• Maternity allowance increases from £187.18 to £194.32 on 6 April 2026.
• Statutory paternity, adoption, shared parental, parental bereavement, and neonatal care pay increase from £187.18 to £194.32 on 6 April 2026.
• Statutory sick pay (SSP) will increase from £118.75 to £123.25 on 6 April 2026. 

Changes to SSP introduced by the Employment Rights Act 2025 are also due to come into force on 6 April 2026. This will provide entitlement to SSP from the first day of sickness absence, as well as removal of the Lower Earnings Limit (LEL) threshold (currently £123 a week) to be entitled to payment of SSP. Workers whose earnings are below the LEL will be entitled to SSP at the lower of the statutory rate and 80% of the worker’s average weekly pay. 

In addition to the above changes, the National Minimum Wage rates will increase across all categories on 1 April 2026 – more details can be found on the Government’s website.