6 April 2024: Financial Rate Changes

There are many rate changes that will come into effect from 6 April 2024 as a result of the Governments annual review of compensation limits and statutory payments. 

It is crucial that employers are aware of the rates that are due to increase. This will be of particular importance if you are currently exploring redundancies or dismissals. 

The key increases are as follows: 

• The maximum compensatory award for unfair dismissal claims will increase from £105,707 to £115,155. It remains that the compensation is capped at the employee’s annual gross salary if lower. 
• The maximum basic award for unfair dismissal claims will increase from £19,290 to £21,000.
• The minimum basic award for some forms of unfair dismissal will be £8,533, an increase from £7,836.
• The cap on a statutory weeks pay will increase from £643 to £700. It remains that if an employee earns less than the cap their actual weekly pay will be used when calculating for instance statutory redundancy pay. 
• At present the maximum statutory redundancy pay an employee can receive is £19,290, but this is to increase to £21,000. 
• The rate of statutory lay-off pay will increase from £35 per day to £38 a day. Please note, this will be subject to a maximum of 5 days in any three month period, so a maximum of £190 in any three months.