Statutory Increases From 2022
As of this coming April, The UK’s Employment Laws have changed regarding the minimum rates of pay, statutory sick pay and statutory family-related pay in order to keep up with the current rates of the UK’s Cost of Living.
As such, Our Small Business Community should begin to make adjustments around the following changes:
National Living Wage (NLW) / National Minimum Wage (NMW)
| Rates from April 2021 -March 2022 | Rates from April 2022 | |
| National Living Wage (NLW) | £8.91 | £9.50 |
| NMW 21-22 Year Old Rate | £8.36 | £9.18 |
| NMW 18-20 Year Old Rate | £6.56 | £6.83 |
| NMW 16-17 Year Old Rate | £4.62 | £4.81 |
| NMW Apprentice Rate | £4.30 | £4.81 |
Increased Statutory Family Related Pay and Statutory Sick Pay
It should be noted that for the Parental Related Pay (Maternity, Paternity, Adoption, etc), the gross weekly earnings that are required have been increased from £120 to £123 and above.
| Rates from April 2021 -March 2022 | Rates from April 2022 | |
| Statutory sick pay | £96.35 per week | £99.35 per week, |
| Statutory Parental Bereavement Pay | £151.97 per week | £156.66 per week |
| Statutory Maternity, Paternity, Adoption | £151.97 per week | £156.66 per week |
Advisory Fuel Rates
Just in case you missed it in March, the advisory fuel rates increased from the 1st March 2022. These are the advised rates or employers to reimburse employees for business travel in their company cars at these rates or alternatively employees need to repay the cost of fuel used for private travel.
The advisory electricity rate for fully electric cars is 5 pence per mile.
Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables
For Petrol
| Engine Size | Petrol – Rate Per Mile |
| 1400cc or less | 13p |
| 1401cc to 2000cc | 15p |
| Over 2000cc | 22p |
For Diesel
| Engine Size | Diesel – Rate in Per Mile |
| 1600cc or less | 11p |
| 1601cc to 2000cc | 13p |
| Over 2000cc | 16p |
For LPG
| Engine Size | LPG – Rate in Per Mile |
| 1600cc or less | 8p |
| 1601cc to 2000cc | 10p |
| Over 2000cc | 15p |
These rates are calculated every quarter, meaning the next time these rates are reviewed will be on the 1st of September.
What Do You Need to do As An Employer?
- Review your pay rates to ensure that they reflect the new rates of pay from 1st April 2022
- Ensure that anyone currently on any statutory payment benefits is given the correct rate from 6th April 2022.
- Update your expenses policy with the new Advisory Rates for mileage.
Kate Underwood HR Can Help You Today
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If you have any questions about the April 2021 Employment Law Changes for Small Businesses, or would just like to book an informal chat, please click here.