April 2022: Changes to statutory rates of pay and National Minimum Wage

By Brabners LLP

02 Mar 2022

shutterstock_241956724.jpg

April traditionally brings changes to National Minimum Wage Rates and statutory pay rates. This year there is also an increase to National Insurance Contributions (NICs) to remember.

We set out below the changes for the financial year 2022/2023:

National Minimum Wage

Following the advice of the Low Pay Commission, the government will increase the National Minimum Wage rates from 1 April 2022 as follows:

The National Living Wage (which since 2021 has applied to those aged 23 and over) will increase to £9.50 (up from £8.91). The minimum hourly rate for 21-22 year olds will increase to £9.18 (up from £8.36). The minimum hourly rate for 18-20 year olds will increase to £6.83 (up from £6.56). The minimum hourly rate for 16-17 year olds will increase to £4.81 (up from £4.62). The apprentice rate (for those under 19 years or those over 19 in their first year of apprenticeship) will increase to £4.81 (up from 4.30). The accommodation offset rates will also increase, with a daily rate of £8.70 (up from £8.36) and a weekly rate of £60.90 (up from £58.52).

National Insurance Contributions

From 6 April 2022, NICs for both employers and employees will increase by 1.25% in order to provide additional funding to health and social care services.

At the time of writing, despite growing pressure on the government to abandon plans to increase NICs it seems there is no intention to do so.

Statutory Sick Pay

From 6 April 2022, the rate of Statutory Sick Pay (SSP) will increase to £99.35 per week (up from £96.35 per week).

For the first time in two years, the minimum average weekly earnings required to qualify for SSP will increase to £123 per week (up from £120 per week).

Family-related Pay

From 3 April 2022, the rates for Statutory Maternity, Paternity, Adoption, Parental Bereavement, and Shared Parental Pay, are set to increase to £156.66 per week (up from £151.97 per week); the employee will only be entitled to the lesser of 90% of their normal weekly earnings and this new weekly rate (with the exception for Statutory Maternity Pay and Statutory Adoption Pay, where 90% of normal weekly earnings is guaranteed for the first six weeks).

As with SSP, for the first time in two years, the minimum average weekly earnings required to qualify for these family-related payments will increase to £123 per week (up from £120 per week).

Compensation Limits – Statutory Redundancy Pay and Unfair Dismissal

At the time of writing, changes to tribunal awards for successful claims have not been announced. Updates to these compensation limits are expected in the coming weeks.

What do you need to do?

To avoid a breach of National Minimum Wage legislation and potentially being named and shamed, you should ensure that the rates of pay in your organisation from April are compliant with the increases to the National Minimum and National Living Wage rates. Also remember the changes to the Statutory rates of pay and the increase to NICs from April and ensure that payroll is implementing all of these changes.

To discuss how any of these changes affect you or your organisation, please contact a member of our Employment team.

This article contains a general overview of information only. It does not constitute, and should not be relied upon, as legal advice. You should consult a suitably qualified lawyer on any specific legal problem or matter.

Latest news

1

Preston Tram bridge scheduled to open in the Spring Preston tram bridge

Preston Tram bridge scheduled to open in the Spring

22 Dec 2025

2

MHA to acquire Moore Stephens firms in UAE Rakesh Shaunak MHA

MHA to acquire Moore Stephens firms in UAE

22 Dec 2025

3

Planning application for new industrial and logistics Frontier Park Preston Plans have been submitted for the land in Preston

Planning application for new industrial and logistics Frontier Park Preston

18 Dec 2025

4

Burnley College gets share of £88.5m funding to revolutionise engineering and computing education Burnley College interim principal Kate Wallace, curriculum manager for Engineering David Coar, head of projects and partnerships Rosie Fearne, assistant principal – BCUC Nina Parkin and director of Skills and Innovation Neil Burrows

Burnley College gets share of £88.5m funding to revolutionise engineering and computing education

18 Dec 2025

5

SpudBros link up with EG On The Move SpudBros opening in Blackburn

SpudBros link up with EG On The Move

17 Dec 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
January / February 2026 Magazine networking event
Porsche Preston1200x630
Networking
22 Jan 2026

January / February 2026 Magazine networking event

Porsche Preston, Preston, PR2 1QJ

08:30 - 10:30

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

St Catherine's Christmas Tree-Cycling
Tree Cycling.png.png
LBV Hub Fundraisers
25 Nov 2025 - 10 Jan 2026

St Catherine's Christmas Tree-Cycling

Several locations, Preston, PR5 5XU

10:00 - 13:07

Lancashire post Budget analysis finance leaders events
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
27 Nov 2025 - 27 Dec 2025

Lancashire post Budget analysis finance leaders events

Farington Lodge Hotel, Stanifield Lane, Farington, Preston, PR25 4QR

08:00 - 10:00

Chamber Breakfast Networking – January
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
08 Jan 2026 - 08 Jan 2026

Chamber Breakfast Networking – January

3-1-5 Health Club, Lancaster, LA1 3PE

08:00 - 10:00

Lancashire County Council – Meet the Buyer - January 2026 Webinar Event
LBV Hub Webinar
13 Jan 2026

Lancashire County Council – Meet the Buyer - January 2026 Webinar Event

10:00 - 12:00

The Business Network Central and East Lancashire
LBV Header (28).png.png
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

The Business Network Central and East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Preston Tech Connection: Tech For Better Humans
PTC January 26 banner.jpg.jpg
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

Preston Tech Connection: Tech For Better Humans

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Society1 Open Coworking Day
Open Day Square.png.png
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

Society1 Open Coworking Day

Society1, Coworking Space, Preston, PR1 3LT

09:00 - 17:00

Lancashire County Council – Meet the Buyer Drop in Event
Meet the Buyer event new
LBV Hub Networking
20 Jan 2026

Lancashire County Council – Meet the Buyer Drop in Event

County Hall, Pitt Street, Preston , PR1 8XJ

10:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin