Freeze in statutory payments next April


The government is proposing to freeze a vast swathe of statutory payments from April 2016.


Although there is no statutory requirement to raise these rates every year, they normally increase each April in line with rate of inflation under the Consumer Prices Index (CPI) for the September of the previous year. However, as the CPI fell by 0.1% in the year to September 2015, there will be no increase to the rates in 2016-17.


From April 2016, the weekly rate of statutory maternity pay and other parental payments will remain at £139.58 or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate. Statutory sick pay is also frozen at the current weekly rate of £88.45.


To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit. This amount is also frozen at £112.


www.gov.uk/government/uploads/system/uploads/attachment_data/file/480317/proposed_benefit_and_pension_rates_2016_to_2017.pdf