Statutory payment rates 2020/21 confirmed

Statutory payment rates 2020/21 confirmed

In January 2020, the UK government unveiled a policy paper outlining proposed adjustments to statutory maternity pay (SMP), statutory adoption pay (SAP), statutory paternity pay (SPP), statutory shared parental pay (ShPP), and statutory sick pay (SSP) for the tax year 2020/21. The paper provided a glimpse into upcoming changes, which have now been confirmed in the draft Social Security Benefits Up-rating Order 2020.

Keeping You Updated: Social Security Benefits for 2020/21 and Beyond

As we step into 2023, it’s crucial to stay informed about the ever-evolving landscape of social security benefits. Understanding these changes is not just important for individuals and families but also for businesses and employers. 

Confirmed Adjustments for 2020/21: The draft Social Security Benefits Up-rating Order 2020 has officially solidified the proposed changes for the tax year 2020/21. Here’s a recap of the confirmed adjustments:

  • SMP, SAP, SPP, and ShPP: The standard weekly rates for statutory maternity pay, adoption pay, paternity pay, and shared parental pay will increase from £148.68 to £151.20 starting from April 5, 2020. This update ensures that individuals welcoming new additions to their families have access to enhanced financial support during these important life moments.

  • SSP: The weekly rate of statutory sick pay is set to increase from £94.25 to £95.85, effective from April 6, 2020. This adjustment reflects the government’s commitment to providing a safety net for employees facing health challenges.

  • Lower Earnings Limit: The draft Social Security Regulations 2020 also highlight an increase in the lower earnings limit, which determines eligibility for SMP, SAP, SPP, ShPP, and SSP. This limit will rise from £118.00 to £120.00 per week, starting from April 6, 2020. The increase ensures that more workers can access these crucial benefits.

Recent Developments in 2023: As we fast forward to 2023, it’s essential to be aware of any new changes or developments that may impact social security benefits. The landscape of social security is subject to adjustments based on economic and societal factors. Keep an eye on government announcements, policy papers, and official orders to stay updated on any potential alterations in rates, thresholds, or eligibility criteria.

Conclusion: Staying informed about social security benefits is vital for individuals, families, and businesses. The confirmed adjustments for 2020/21, as outlined in the draft Social Security Benefits Up-rating Order 2020, provide a solid foundation for understanding the existing rates and limits. As we progress into 2023, it’s important to remain vigilant for any new developments or changes in social security that may impact you or your organisation. Stay tuned for future updates to ensure you’re well-prepared for whatever the future may hold.

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