New rates will come into effect, impacting the minimum pay for most workers.
| Category of worker | Hourly Rate |
|---|---|
| Aged 21 and above (national living wage rate) | £12.71 |
| Aged 18 to 20 inclusive | £10.85 |
| Aged under 18 (but above compulsory school leaving age) | £8 |
| Apprentices aged under 19 | £8 |
| Apprentices aged 19 and over, but in the first year of their apprenticeship | £8 |
‘Day 1’ Statutory Sick Pay (SSP)
Two significant changes will enhance SSP coverage:
- Removal of the lower earnings limit, meaning more low-income workers will qualify
- Removal of the waiting period, so SSP will begin on the first day of illness
New weekly SSP rates for 2026/2027
The weekly rate of SSP for 2026 to 2027 is £123.25 or 80% of the employee’s average weekly earnings, whichever is lower.
Why this is important:
This improves financial protection for workers who previously fell through the gaps. Employers will need to update payroll systems and policies to reflect the changes.
‘Day 1’ Paternity leave and unpaid parental leave
- Employees will be entitled to paternity leave from their first day of employment
- All parents will also be entitled to unpaid parental leave, regardless of length of service
Why this matters:
This change makes workplaces more inclusive for new and expectant parents, particularly those in short-term, agency, or seasonal roles. Employers will need to update internal policies to reflect these new rights
Establishment of a Fair Work Agency
A new, independent Fair Work Agency will be established to:
- Investigate workplace complaints and enforce compliance
- Offer guidance to employers and workers
- Oversee standards relating to pay, working conditions, and dispute resolution