From today, there will be several notable changes that come into effect, which will impact both individuals and businesses.
1 April 2022: increase to National Living Wage and National Minimum Wage rates
The Government reviews these rates annually, which take effect each April.
From today, 1 April 2022, National Minimum Wage and National Living Wage rates have increased as follows:
|Category||Rate from 1 April 2022|
|Age 23 and over||£9.50|
|Age 21 to 22||£9.18|
|Age 18 to 20||£6.83|
3 April 2022: increase to family-related pay
The weekly rate for statutory family-related pay has increased from £151.97 to £156.66 per week.
This rate applies to the following Statutory Pay: Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement. The amount paid will be the lower of: 90% of the employee's average weekly earnings, or the statutory rate.
6 April 2022: increase to Statutory Sick Pay (SSP) rate
Statutory sick pay will increase from £96.35 to £99.35 per week.
6 April 2022: increase to statutory redundancy payments
The cap on a week's pay for the purposes of calculating redundancy payments (and the basic award in unfair dismissal claims) will increase from £544 to £571.
The maximum statutory redundancy payment will increase from £16,320 to £17,130.
You can calculate your entitlement to a statutory redundancy payment here.
6 April 2022: increase to compensation for unfair dismissal claims
The basic award in an unfair dismissal claim will be calculated in the same way as a statutory redundancy payment above.
In addition to the basic award, employee's can claim a compensatory award.
The maximum compensatory award for unfair dismissal claims will increase from £89,493 to £93,878 (or 52 weeks' gross pay if lower).
This increase relates to dismissals where the effective date of termination is on or after 6 April 2022.
6 April 2022: increase to Vento bands for discrimination claims
Vento bands are used as guidance for making injury to feelings awards in discrimination claims. They are divided into three bands, depending on the facts and seriousness of each claim:
Lower: less serious cases i.e. isolated/one off offences.
Middle: serious cases that do not merit an award in the upper band.
Upper: most serious cases i.e. lengthy campaign of discrimination.
The following increases take effect for claims issued after 6 April 2022:
|Vento band||Claims between 6 April 2021 and 5 April 2022||Claims after 6 April 2022|
|Lower||£900 – £9,100||£990 – £9,900|
|Middle||£9,000 – £27,400||£9,900 – £29,600|
|Upper||£27,400 to £45,600||£29,600 – £49,300|
Please note that tribunals are not bound by the guidelines, and only in the most exceptional cases will a Tribunal make an award in excess of the upper limit.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.