Statutory Increase 2025
April is nearly here (again — honestly, how is it always so sneaky? 😅) and as usual, it’s bringing the annual spring clean of HR and payroll changes. Some years these feel like minor tweaks, but April 2025 is definitely one to pay attention to — especially with the long-awaited Neonatal Leave & Pay finally arriving, and a shift to the National Living Wage affecting younger workers too.
So, if you’re an employer, manager, or just the person in charge of “the people stuff” — this one’s for you. Grab a cuppa, and let’s make sense of what’s coming your way.
What’s changing from April 2025?
Here’s the quick version:
✅ National Minimum Wage increases (and expands)
✅ Family-related statutory payments are going up
✅ Statutory Sick Pay (SSP) rises
✅ A brand-new Neonatal Leave & Pay scheme starts
✅ Redundancy & unfair dismissal compensation limits increase
✅ The Lower Earnings Limit is also getting a refresh
Simple enough on paper — but we all know these little updates can create admin headaches if you’re not prepared. So, let’s break it all down properly.
National Minimum Wage (NMW) — Big shift this year
This is the one you definitely don’t want to miss.
From 6th April 2025, the new hourly rates will be:
Age Group New Rate
National Living Wage (now 21 and over) £11.66
18–20 year olds £8.95
16–17 year olds £6.92
Apprentices £6.92
Why is this a big deal?
Well, the National Living Wage now applies to anyone aged 21 and over, not just those aged 23+. This is a meaningful shift for anyone employing younger workers, especially in industries like hospitality, retail, care, and small businesses where you may have lots of 21-22 year olds on the books.
💡 Client tip:
Double-check your payroll and staff lists — you might have team members who have unknowingly crossed into the National Living Wage bracket. It could catch you (and them) by surprise.
This change also means pay differentials between older and younger staff may need reviewing, especially if you’ve got team members working side-by-side doing the same role.
Family-Related Statutory Payments (April 2025 Rates)
From 7th April 2025, the standard weekly rate for most family-related payments will rise to £184.03 (or 90% of average weekly earnings if lower).
This applies to:
- Maternity Pay
- Paternity Pay
- Adoption Pay
- Shared Parental Pay
- Parental Bereavement Pay
As ever, the qualifying rules for these payments haven’t changed — but the amounts have.
Why it matters:
These rates are not just figures on a payslip.
They impact:
- Budgeting for family leave cover
- Cashflow planning for smaller businesses
- Staff conversations about planning their leave
Making sure managers (not just payroll) know the new rates is helpful, especially if you want employees to feel supported during family leave discussions.
NEW: Neonatal Leave & Pay — Coming 6th April 2025
Finally, something that many of us in the HR world have been hoping for!
If an employee’s baby needs to spend time in neonatal care, they will now be entitled to up to 12 weeks’ extra paid leave, on top of their maternity, paternity, or other family leave.
Paid at £184.03 per week (or 90% of average weekly earnings if lower)
The employee must meet eligibility rules (just like with other family-related leave)
This leave is available to both parents
Why is this important?
It recognises the difficult situation many families face when babies arrive prematurely or with health complications. In the past, parents have had to use maternity/paternity leave while their baby was still in hospital — now, they’ll have extra, dedicated leave for this purpose.
💡 Client tip:
Get ahead by adding Neonatal Leave into your family leave policies now. Even if you don’t expect to use it often, having it clearly written shows your team you’re up-to-date and supportive.
🤒 Statutory Sick Pay (SSP) Increase
From 6th April, the weekly SSP rate will be:
£116.75
This applies to eligible employees after the usual 3-day waiting period.
📉 Lower Earnings Limit (LEL)
The LEL rises to £138 per week.
Why it matters:
Employees must earn at least this much to qualify for SSP and family-related statutory payments. For part-timers or lower-paid staff, this threshold is one to watch.
✂️ Redundancy & Unfair Dismissal Compensation Limits
The updated figures are:
Maximum weekly pay for redundancy and the basic award (unfair dismissal) = £721
Maximum compensatory award for unfair dismissal = £105,707 (or 52 weeks’ pay, whichever is lower)
💡 Small business reality:
This is often where small businesses suddenly realise the cost of “getting it wrong” with dismissals or redundancy. Don’t forget, this cap is applied by tribunals but the real risk is legal costs, stress, and reputational damage. Better to prevent than defend!
So, what should you actually do about all of this?
We know these annual updates are rarely the most thrilling part of running a business (unless you’re an HR geek like us 😉), but here’s your simple action list:
✅ Update your payroll system
Make sure rates and thresholds are set correctly before the first pay run after 6th April.
✅ Review your younger workforce
Are your 21-22 year olds about to become National Living Wage earners?
✅ Update your employee handbook
Especially your family leave section — Neonatal Leave is brand new, and your policy needs to show you know it exists.
✅ Brief your managers
They don’t need to know every detail, but they should be aware that pay rates have changed and that employees might come to them with questions about Neonatal Leave or updated entitlements.
✅ Keep an eye on what’s next
This is just the beginning. Later in 2025 we’re expecting:
The Employment Rights Bill
Safe Leave for victims of domestic abuse
New whistleblowing protections (including the proposed SafeVoice service)
Changes to Apprenticeships & Technical Education
Updates to the Health & Safety at Work Act 1974
AND a cap of 3 months on the length of non-compete clauses
Don’t worry — we’ll keep you posted as things develop.
“Do I really need to change anything if I only have a few staff?”
Honestly? Yes.
Even if you only have one employee, these rules still apply to you.
And if you’re a small business, you don’t want to risk falling foul of National Minimum Wage laws or missing a statutory payment — they’re some of the first things regulators look at if issues ever arise.
Feeling a bit “when am I supposed to find time for this?”
You’re not alone.
The good news? You don’t have to figure it all out on your own.
We’re talking all about this (with less legalese and more humour) in the latest episode of our podcast Buzzing About HR. Give it a listen, or just get in touch — we’re always happy to help (with or without biscuits, but preferably with 🍪).
👉 Check out the blog, the podcast, or drop us a message — whatever works for you.
💬 Final Thought
April’s changes might feel small on their own, but when you add them up, they affect payroll, contracts, employee expectations, and your legal obligations.
Getting ahead of them will make life easier — and we’re here to make sure you do just that.
