Search

Compensation limits and statutory payment rates: 2025-26 and 2026-27

In April 2026, increases will be made to the maximum compensation limits for certain Employment Tribunal awards, and to statutory pay and national minimum wage rates.  Our handy at-a glance table sets out the new figures that will apply from April 2026 to April 2027, alongside the previous year’s figures.

Compensation limits

Maximum award6 April 20256 April 2026
A “week’s pay”£719£751
Breach of right to be accompanied to a disciplinary or grievance hearing (up to 2 weeks’ pay)£1,438£1,502
Unfair dismissal – maximum basic award£21,570£22,530
Unfair dismissal – compensatory award£118,223£123,543 (but will be uncapped from 1 January 2027)
Unfair dismissal – failure to reinstate or reengage (26 to 52 weeks’ pay)£18,694 – £37,388£19,526 – £39,052
Redundancy – maximum statutory redundancy payment£21,570£22,530
Redundancy – failure to collectively consult90 days’ gross actual pay180 days’ gross actual pay (for dismissals taking effect on or after 6 April 2026)
Contracts – failure to give written particulars of employment (2 to 4 weeks’ pay)£1,438 – £2,876£1,502 – £3,004
Contracts – breach of contract claim in the ET£25,000£25,000
Flexible working breaches (up to 8 weeks’ pay)£5,752£6,008
TUPE – failure to inform and consult13 weeks’ gross actual pay13 weeks’ gross actual pay
Discrimination – injury to feelings awards (the “Vento” bands)Lower band:  £1,200 – £12,100Lower band:  £1,300 – £12,600
Middle band: £12,100 – £36,400Middle band: £12,600 – £37,700
Upper band: £36,400 – £60,700Upper band: £37,700 – £62,900
Exceptional cases: £60,700+Exceptional cases: £62,900+

Statutory payments for time off work

Weekly pay at the prescribed rate6 April 20256 April 2026
Maternity pay (first 6 weeks at 90% of normal pay and up to 33 weeks at the prescribed rate)£187.18£194.32
Adoption pay (first 6 weeks at 90% of normal pay and up to 33 weeks at the prescribed rate)£187.18£194.32
Paternity pay (up to 2 weeks)£187.18£194.32
Shared parental pay (up to 39 weeks less any weeks of SMP, MA or SAP claimed)£187.18£194.32
Parental bereavement pay (up to 2 weeks)£187.18£194.32
Neonatal care pay (up to 12 weeks)£187.18£194.32
Statutory sick pay£118.75£123.25

National minimum wage

Hourly rate 1 April 20251 April 2026
National Living Wage (age 21+)£12.21£12.71
Age 18-20£10.00£10.85
Age 16-17£7.55£8.00
Apprentices£7.55£8.00

BDBF is a leading employment law firm based at Bank in the City of London. If you would like to discuss any issues relating to the content of this article, please contact Amanda Steadman (AmandaSteadman@bdbf.co.uk), Rose Lim (RoseLim@bdbf.co.uk) or your usual BDBF contact.

image_pdfimage_print
Facebook
Twitter
LinkedIn