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The Sarah Buxton blog


Statutory rates and limits: what changed as of April 2022?

April 2022 saw the usual set of statutory rate changes affecting everything from Statutory Sick Pay to National Insurance contributions.

Notably, the latter rate increased by 1.25%, a change that the Government states will cover ‘NHS, health and social care in the UK’ in the wake of a growing backlog of patients waiting for treatment.

But what exactly are the other changes? And how might they affect you, your employees, or your practice? Read my explanation of the changes below.

Statutory Sick Pay

Statutory Sick Pay (SSP) is a sum paid by employers if their employees are too ill to work. They can pay it for up to 28 weeks to cover the time that a staff member is absent.

From 6th April 2022, the rate of SSP will increase from £96.35 to £99.35. To qualify for this amount, employees must:

● Have worked for an employer

● Earned an average of at least £123 per week

● Been sick for at least four consecutive days (including non-working days)

The Government raised the Lower Earnings Limit (LLE) from £120 to £123 to compensate for eligibility, marking the first change in two years.

The National Minimum and Living Wages

The National Minimum Wage is the amount of money an employee is entitled to, depending on their age. The Living Wage is higher than this and is available to all workers over 23 years of age.

Recent changes are as follows:

● £9.50 per hour for workers aged 23 and over (increased from £8.91)

● £9.18 an hour for workers aged 21 – 22 (increased from £8.36)

● £6.83 an hour for workers aged 18 – 20 (increased from £6.56)

● £4.81 an hour for workers aged 16 – 17 (increased from £4.62)

● £4.81 an hour for apprentices (increased from £4.30)

Statutory Maternity Pay, Paternity Pay, Shared Parental Pay, Adoption Pay, Maternity Allowance, and Parental Bereavement Pay

These statutory rates all come under the umbrella of ‘family leave’. The weekly rates for these rose from £151.97 to £156.66.

Redundancy Pay

The cap on a week’s pay (used to calculate the basic award for those earning above a certain amount) rose from £544 to £571.

Bear these changes in mind and consider whether you need to make any amendments to your employment contracts. If you have any questions about this, the changes or anything else affecting your practice, please get in touch - I am always happy to help.

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