Payroll changes from April 2026
There are a number of changes affecting payroll from April 2026, including to the National Minimum Wage, Statutory Sick Pay, Parental Leave, and Student Loan thresholds.
Below are the key changes taking effect from April 2026.
National Minimum Wage
The National Minimum Wage is increasing. The new rates that apply are as follows:
| |
NMW rate from April 2026 |
Increase (£) |
Increase (%) |
| National Living Wage (21 and over) |
£12.71 |
50p |
4.1 |
| 18-20 Year Old Rate |
£10.85 |
85p |
8.5 |
| 16-17 Year Old Rate |
£8.00 |
45p |
6.0 |
| Apprentice Rate |
£8.00 |
45p |
6.0 |
| Accommodation Offset |
£11.10 |
44p |
4.1 |
Source: Minimum wage rates for 2026 – GOV.UK
Statutory Sick Pay (SSP)
The weekly rate of Statutory Sick Pay for 2026 to 2027 has increased from £118.75 to £123.25, or 80% of the employee’s average weekly earnings, whichever is lower.
From 6 April 2026, SSP is payable from the first full day sickness absence, with the removal of the waiting days, which would have been applicable under the old rules.
SSP will be available to all eligible employees regardless of their earnings. The Lower Earnings Limit will no longer apply from 6 April 2026.
Sources: Sickness absences that start before and end on or after 6 April 2026 – GOV.UK, Statutory Sick Pay Changes
Changes to parental leave
From 6 April 2026, Paternity Leave and Unpaid Parental Leave will be a “day one” right, meaning that from an employee’s very first day of employment, they will be eligible for both types of leave.
Employees will be able to give notice of either type of leave from day one of employment, and fathers and partners can now take Paternity Leave and Pay after Shared Parental Leave and Pay.
Sources: Paternity Leave and Unpaid Paternity Leave, Your Parental Leave Rights
Student Loans
The thresholds at which graduates repay their plan 1, 2, and 4 student loans are increasing from April 2026, and the new Plan 5 repayment threshold has been set at £25,000. The new thresholds are as follows:
| Plan |
Repayment threshold from April 2026 |
| Plan 1 (issued prior to September 2012) |
£26,900 |
| Plan 2 (September 2012 – July 2023) |
£29,385 |
| Plan 3 (Postgraduate Loans) |
£21,000 |
| Plan 4 (Scotland) |
£33,795 (expected) |
| Plan 5 (on or after 1 August 2023) |
£25,000 |
The repayment rate remains at 9% (6% for postgraduate loans).
Sources: Student Loans Interest and Repayment Threshold Announcement for Plan 2 and Plan 3 loans – GOV.UK, Student Loans Interest Rates and Repayment Threshold Announcement – GOV.UK, Student loan changes in the budget – what you need to know – Which?
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