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The annual changes to tribunal compensation caps and statutory benefits applicable from 6 April 2026 have been confirmed:
- the cap on the unfair dismissal compensatory award increases from £118,223 to £123,543 (or 52 weeks’ actual pay if lower) - at least until it is removed under the Employment Rights Act 2025, expected from 1 January 2027;
- the cap on weekly pay (used to calculate the unfair dismissal basic award and statutory redundancy pay) increases from £719 to £751;
- the bands for injury to feelings awards are increased: the lowest band starts at £1,300, the middle band at £12,600, and the highest band starts at £37,700 with a cap of £62,900 (save in exceptional cases);
- the weekly rate of statutory sick pay increases to £123.25 (from £118.75) and the weekly flat rate of statutory maternity, paternity, adoption, shared parental, parental bereavement and neonatal care pay increases to £194.32 (from £187.18).
The national minimum wage rates increase from 1 April 2026: workers of 21 years and older will be entitled to be paid a minimum national living wage of £12.71 per hour (previously £12.21 per hour); the rate for those aged 18 to 20 increases to £10.85 per hour.
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