ET Limits and Statutory Payment Increases – April 2026
The UK Government has confirmed the increases in Employment Tribunal awards and various statutory payment caps to come into force on 6 April 2026.
Employment Tribunal Awards Limits
The Employment Rights (Increase of Limits) Order 2026 (SI 2026/310) sets the rates for all cases whereby the effective date of termination is on or after 6 April 2026. The most notable increases are:
Subject | Old Limit | New Limit |
Limit on a week’s pay | £719 | £751 |
Maximum compensatory award for unfair dismissal | £118,223 | £123,543 |
Minimum basic compensatory award for certain unfair dismissals linked to health and safety, working time cases, trustees of occupational pension schemes, employee representatives and trade union membership | £8,763 | £9,157 |
Limit on compensatory award for failure to have a written policy on tips, gratuities and services charges or failing to record how they have been dealt with | £5,135 | £5,366 |
Please note, cap is due to be removed for any unfair dismissals occurring on or after 1st January 2027. This will mean that the compensation award in unfair dismissal claims will be unlimited.
Statutory Payment Caps
The Social Security Benefits-Uprating Order 2026 (SI 2026/148) has provided for increases effective from 6 April 2026 in relation to the following statutory payments:
Payment | Old Limit | New Limit |
Statutory Maternity, Adoption, Shared Parental, Parental Bereavement and Neonatal Care Pay | £187.18 | £194.32 |
Maternity Allowance | £187.18 | £194.32 |
Statutory Sick Pay | £118.75 | £123.25 |
Vento Bands
The Presidents of the Employment Tribunals have published their presidential guidance in relation to the Vento band rates for awards for injury to feelings and psychiatric injury. The updated Vento bands effective in respect of claims raised on or after 6 April 2026 are:
Band | Old Limit | New Limit |
Lower band (less serious cases) | £1,200 to £12,100 | £1,300 to £12,600 |
Middle band (cases that do not merit an award in the upper band) | £12,100 to £36,400 | £12,600 to £37,700 |
Upper band (the most serious cases | £36,400 to £60,700 | £37,000 to £62,900 |
For more information on how this may affect you, or your business, please contact a member of our Employment Team who will be happy to assist.