New statutory maternity, paternity and sick pay rates after April law | Personal Finance | Finance

Statutory Maternity Pay increase from April will give claimants £7.14 extra per week (Image: Getty)
New rates for statutory maternity, paternity and sick pay will take effect from April in a major boost for employees across the UK.
Those who qualify for Statutory Maternity Pay (SMP) are entitled to payments for up to 39 weeks at a rate of 90% of their average weekly earnings (before tax) for the first six weeks, followed by £187.18 or 90% of average weekly earnings (whichever is lower) for the next 33 weeks. It is paid in the same way as your wages, so either in monthly or weekly instalments, and both tax and National Insurance is deducted.
Currently, SMP is paid at a rate of £187.18 per week (after the first six weeks), but this will rise to £194.32 per week from April 6. The increase will give claimants £7.14 extra per week, or £235.62 more over the full 33-week period.
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SMP usually starts from when you take your maternity leave, or will begin automatically if you’re off work for a pregnancy-related illness in the four weeks before the week your baby is due.
To qualify for SMP, you must earn at least £125 per week on average and give your employer the correct proof of notice that you are pregnant.
Statutory Paternity Pay (SPP) is also rising from April 6 at the same rate, up from £187.18 per week to £194.32, or 90% of your weekly earnings (whichever is lower).
To receive SPP you must be employed by your employer up to the date of birth, earn an average of at least £125 per week before tax, give the correct notice, and have been continuously employed by your employer for at least 26 weeks up to the end of any day in the ‘qualifying week’, which is the fifteenth week before the baby is due.
Changes to Statutory Sick Pay (SSP) will also take effect from April, which will see more than one million workers across the UK be up to £100 per week better off.
As part of plans to improve living standards, the Department for Work and Pensions (DWP) has confirmed that UK workers who are paid less than £123 per week will receive guaranteed sick pay equivalent to 80% of their average weekly salary, or SSP at the rate of SSP – whichever is lower.
The DWP says the law change means that some of the country’s lowest earners will be up to £100 better off per week, compared to the current system.
Currently, workers can get £116.75 per week SSP if they are too ill to work, and this is paid by employers for up to 28 weeks. But from April 6, the SSP rate will rise to £118.75 per week, giving those who are entitled to it an extra £2 per week.
To qualify for SSP, you must be classed as an employee and have done some work for your employer, earn an average of at least £123 per week, and have been ill for more than three days in a row, including non-working days.
So if you earn less than £123 per week, it means that you don’t get anything if you’re too ill to go to work. But the changes will allow low-paid workers to have the time off that they need while still receiving 80% of their weekly salary, or the new SSP rate.
The DWP said the new “fairer rate” strikes the right balance between giving workers who fall ill financial security and the cost to businesses, while retaining the incentives for people to return to work.
Secretary of State for Work and Pensions Liz Kendall MP said: “For too long, sick workers have had to decide between staying at home and losing a day’s pay or soldiering on at their own risk just to make ends meet.
“No one should ever have to choose between their health and earning a living, which is why we are making this landmark change.
“The new rate is good for workers and fair on businesses as part of our plan to boost rights and Make Work Pay, while delivering our Plan for Change.”









