Tag Archive for: cost of living

Are You Up to Speed with the Changes to Statutory Payments for Your Employees (Updated in April 2023)?

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This year’s statutory pay increases represent between a 9% and 10.1% increase from 22/23 as an effort to soften the blow of the rising costs of living on employees.

It’s the time of year that the Government updates statutory payments for employees. The updates cover a wide range of statutory rates of pay, from statutory sick pay to the national living wage for those aged over 23 years old.

What Has Changed?

From 1 April 2023 onwards:

  • National Living Wage for age 23 or over – £10.42 per hour
  • National Minimum Wage for age 21 to 22 – £10.18 per hour
  • National Minimum Wage for age 18 to 20 – £7.49 per hour
  • National Minimum Wage for under 18s – £5.28 per hour
  • National Minimum Wage for Apprentices (in their first year only) – £5.28 per hour


From 2 April 2023 onwards:

  • Statutory Maternity Pay and Maternity Allowance – £172.48 per week
  • Statutory Shared Parental Pay – £172.48 per week
  • Statutory Paternity Pay – £172.48 per week
  • Statutory Parental Bereavement Pay – £172.48 per week

From 6 April 2023 onwards:

  • Statutory Sick Pay – £109.40 per week

No Change

The minimum weekly earnings threshold has not changed, for eligibility for statutory sick pay or statutory maternity, paternity, adoption or shared parental pay, which remains at £123 per week. Actions for Employers

From an employer perspective, it’s important that you are aware of these increases to ensure that your policies and practice are up to date in order to remain compliant and maintain your employer brand. In particular, we would recommend for you to review how you manage increases for younger workers. For example, if the rate of pay for a 20 year old employee in your organisation is currently £8 per hour, this is in alignment with minimum wage for their age. However, once they reach their 21st birthday they will be entitled to be paid a minimum of £10.18 per hour. You will need to ensure that you have processes in place to monitor age increases and review pay accordingly to avoid inadvertently breaching the Regulations.

Additionally, we would suggest that you review the pay of all those absent due to sickness or parental leave to ensure their pay is increased in line with the April 2023 updates.

For a discussion on how NQHR can support you to audit your current pay policies and practices in line with the statutory increases contact Kathryn Chidzey-Jones, HR Consultant in our team on 07881 092524.

Rising Prices and Risk of Recession – How Can You Be Prepared?

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The Bank of England’s warning of a ‘sharp economic slowdown’ has sparked further fears that the UK could be plunged into recession.

The Government’s announcement of a review into how it can best support a thriving future UK labour market is welcome news, but with the two stage review taking place over spring and summer, will that support come quick enough?

As the UK continues to see a contraction across all sectors of the economy, we consider what steps employers should take regarding its staffing, to deal with the impact of a downturn.

Review Future Plans

It is important to look ahead to commitments you’ve made to establish if they are critical, and if they are, whether or not they can be deferred until you have some certainty.

For your employees this might mean reviewing training activities to ensure future relevance, and staffing plans, considering whether a recruitment freeze is an option.

Employers do need to ensure though that they consider how they will not only weather a recession but also respond in the aftermath – halting all training and recruitment may mean you’re not skilled and fully resourced to respond to future challenges.

Talk to Your Employees

It’s a balancing act for employers to ensure they keep employees appropriately updated on business plans, but without creating alarm and seeing your key staff jump ship. Key to this is relevant and meaningful communication.

You may not have all the answers or any fully formed plans, but communicating that it is on your radar and that you will share information when you can will help to gain trust and provide reassurance. It may encourage employees to review and consider their personal circumstances and avoid over committing. It can also provide clarity if you do decide to take steps such as putting training or recruitment on hold, avoiding your staff feeling even more frustrated and concerned. 

Follow a Fair Process

In the unfortunate event that redundancies are necessary, ensure that you follow a fair process to facilitate genuine and meaningful consultation that is sensitive and respectful to those affected. If you’ve communicated about your business plans appropriately, it should help staff to see this response is less of a knee-jerk reaction.

You need to prepare in order to run a process smoothly – use the time now to get clarity on your staffing numbers and commitments, making sure to consider all staff who may need to be involved such as fixed term contractors and temporary staff. 

For specialist HR support with any of these issues, please contact Sue Meehan Boyes in our team on 07384 468797.