Childcare Counsel - April 2021 rates roundup
By Hannah Belton
Tuesday, March 30, 2021
April brings an increase to the National Living Wage, as well as the lowering of the age threshold at which it applies, from 25 to23. By Hannah Belton, director of Morgan La Roche
Statutory payments
As of 4 April, the following statutory rates will apply in respect of maternity, paternity, adoption, shared parental, bereavement and sick pay.
Weekly statutory payments for time off work
Maternity/adoption/paternity/shared parental/bereavement pay: £151.97Sick pay: £96.35Lower earnings limit (the amount of earnings that allow an employee to qualify for certain state benefits): £120
National Minimum Wage
From 1 April, the National Minimum Wage rates per hour will increase to the figures as shown below. Importantly, for the first time, the National Living Wage age threshold has been reduced from 25-plus to 23 years and older, which will increase staffing costs.
National Minimum Wage per hour
Apprentices: £4.30Age 16-17: £4.62Age 18-20: £6.56Age 21-22: £8.36National Living Wage (23-plus): £8.91
Compensation limits for employment tribunals
There are no increases being made to the compensation limits, but as a reminder, they continue to apply as set out below.
Compensation limits
Week’s pay (for example, when calculating statutory redundancy pay): £538
Statutory redundancy pay (maximum award): £16,140Unfair dismissal basic award (maximum award): £16,140Unfair dismissal compensatory award (the amount a tribunal considers just and equitable compensation for unfair dismissal) (maximum award): £88,519Automatically unfair dismissal basic award (minimum): £6,562Guarantee pay (per day) for lay-off: £30
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