On 26th November 2021, the Department for Work and Pensions produced their Policy Paper on proposed changes to pension and statutory payment rates for 2022 to 2023 (1).
Although they are only proposals and will require two pieces of legislation to make them legally binding namely The Social Security Benefits Up-Rating Order 2021 (in Great Britain) and The Social Security Benefits Up-Rating Order (Northern Ireland) 2021, it is unlikely that the proposed rates will change.
Statutory Sick pay
No date has been indicated when the changes take effect but it is likely that the provisions below will come into place in the start of the new tax year, i.e. 6 April 2022 for Statutory Sick pay ( SSP ) and the Lower Earnings Limit (LEL) and for increases to statutory maternity pay (SMP), statutory adoption pay (SAP), statutory paternity pay (SPP), statutory shared parental pay (ShPP) and statutory parental bereavement pay (SPBP) it is likely they will take effect from the first Sunday in April, which next year is Sunday, 3 April 2022.
The changes are:-
1.The weekly rate of (SSP) will increase from £96.35 to £99.35
2.(LEL) will increase from £120 to £123 per wee
3. The standard weekly rates of (SMP), (SAP),(SPP), (ShPP), (SPBP) will increase from £151.97 to £156.66 (or 90% of the employee’s average weekly earnings if that is less than the statutory rate)
Please note that this article is for information purposes only and should not be relied upon as being authoritative on the matter however further guidance on the matter can be provided by contacting our HR/legal advice-line on 01455 852028.
