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

Final call for investors: Rossendale community solar project must hit target by November Gary McEwan managing director of Interfloor

Final call for investors: Rossendale community solar project must hit target by November

10 Sep 2025

2

Lancashire Combined County Authority unveil plan to Get Lancashire Working Lancashire Combined Authority

Lancashire Combined County Authority unveil plan to Get Lancashire Working

10 Sep 2025

3

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration Collaboration between BAE Systems FalconWorks and Lockheed Martin Skunk Works

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration

09 Sep 2025

4

High street retailers urged to ‘take advantage’ of new funded support programme Brian Moore, Lee Johnson, Anne Williamson and Andrew Leeming

High street retailers urged to ‘take advantage’ of new funded support programme

08 Sep 2025

5

Beaverbrooks invest in the high street in difficult conditions Mark Adlestone And Anna Blackburn Beaverbrooks

Beaverbrooks invest in the high street in difficult conditions

08 Sep 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
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

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

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

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

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 LBV 123 Online Graphic
Subscribe now

Weekly news bulletin