Annual increases in statutory limits for employee payments came into effect on 6 April 2025. These include increases to statutory payments for maternity, paternity and statutory sick pay.
There have been increases to awards for employment claims such as unfair dismissal and discrimination. The Vento bands, which provide guidance to judges assessing the appropriate award for successful discrimination claims, have also been adjusted. Last month also saw increases to the National Minimum Wage, the National Living Wage, and to statutory redundancy payments.
Where eligible, the rates in the below table only apply where the employee’s actual normal weekly wage is higher than these rates. In simple terms, the employee will receive whichever is lower – the figure(s) in the below table, or their usual weekly wage.
|
Statutory Payment* (per week) |
Old Rate |
New Rate (from 6th April 2025) |
|
Maternity Pay |
£184.03 |
£187.18 |
|
Paternity Pay |
£184.03 |
£187.18 |
|
Shared Parental Pay |
£184.03 |
£187.18 |
|
Adoption Pay |
£184.03 |
£187.18 |
|
Parental Bereavement Pay |
£184.03 |
£187.18 |
|
Statutory Sick Pay |
£116.75 |
£118.75 |
|
Neonatal Care Leave (new from April 2025) |
——- |
£187.18 |
* subject to eligibility criteria and the employee’s salary, as noted above.
|
Statutory Payments and Limits |
Old Rate |
New Rate |
|
Statutory cap on a week’s pay (for statutory redundancy calculations and basic awards for unfair dismissal claims) |
£700.00 |
£187.18 |
|
Limit on Compensatory Awards for Unfair Dismissal Claims (except whistleblowing claims, and where employee’s salary is higher than the statutory limit) |
£115,115 |
£118,223 |
|
Statutory Guarantee Payment (for lay-offs and short time working) |
£38 per day |
£39 per day |
National Minimum Wage
The National Minimum Wage (NMW) has also seen an increase, with effect from 6th April 2025.
The NMW applies to anyone classified as a “worker” under employment law. Those who are genuinely self-employed, unpaid volunteers, or attending a work experience placement are not automatically entitled to the NMW.
It’s important to note that the Government is phasing out the 18–20 age bracket rate. A single rate will eventually apply for to all adult workers. In the meantime, this age bracket has received a larger increase to narrow the gap.
|
National Minimum Wage |
Old Rate (per hour) |
New Rate (per hour) |
|
21 years and over |
£11.44 |
£12.21 |
|
18 – 20 year olds |
£8.60 |
£10.00 |
|
16 – 17 year olds |
£6.40 |
£7.55 |
Vento Bands
‘Vento bands’ have also been adjusted with these statutory increases, and the new bands apply to tribunal claims commenced on or before 6th April 2025.
Vento bands are the bands of awards for injury to feelings, and can be applied in successful claims for discrimination, whistleblowing claims (for either detriment or dismissal) and other, specific types of detriment, such as for attending jury service.
The upper band relates to the most egregious cases (for example, where there is evidence of severe, sustained discriminatory treatment). The lower band will most likely be applied in cases of isolated, less severe incidents and, as can be expected, the middle band is designed to cover the cases that fall somewhere in between.
When deciding the amount to award for successful disability discrimination claims (for example), the judge is likely to access factors such as: the severity and duration of the discriminatory treatment, the impact on the claimant’s career, how the employer handled any grievance raised by the claimant, and the physical and psychological impact.
|
Discrimination Awards |
Old Band |
New Band |
|
Lower Band |
£1,200 – £11,700 |
£1,200 – £12,100 |
|
Middle Band |
£11,700 – £25,200 |
£12,100 – £36,400 |
|
Upper Band |
£35,200 – £58,700 |
£36,400 – £60,700 |
As an employer, it is important to note that the Vento bands do not constitute a formal ‘limit’ on the amount that can be awarded.
Instead, they provide guidance for judges to assess an award to be made for injury to feelings or emotional distress, with regard to the particular circumstances of the case. Exceptional cases may well exceed £60,700.
If you have questions about the new statutory pay rates, or your business’s vulnerability to employment claims, contact Jane Smith at [email protected] for a brief, confidential chat.
This article was first published in the May 2025 edition of our newsletter, Moore Law Monthly. Join our mailing list by signing up on our Linktree here: https://linktr.ee/moorelaw.