Employment Tribunal Awards & Statutory Payments Increase from April 2026. What Do Health & Social Care Providers Need to Know?
From April 2026, a number of key employment law thresholds and statutory payments will increase. While these updates apply across all sectors, they carry particular operational and financial implications for health and social care providers, where workforce size, turnover, and employment risk exposure tend to be higher.
At HLTH Compliance, we are already advising providers on how to prepare for these changes in a practical, risk-managed way.
Key Changes from April 2026
Effective from 6th April 2026 (for dismissals on or after this date):
- Week’s pay (used for redundancy & unfair dismissal calculations):
£719 ➡️ £751 - Maximum statutory redundancy payment / basic award:
£21,570 ➡️ £22,530 - Maximum compensatory award for unfair dismissal:
£118,223 ➡️ £123,543
(Note: This may be the final increase before the cap is removed under the Employment Rights Act 2025) - Minimum basic award (for certain unfair dismissals):
£8,763 ➡️ £9,157 - Compensation for failure to comply with tips legislation:
£5,135 ➡️ £5,366
Effective from 5 April 2026:
- Statutory family-related pay (maternity, paternity, adoption, etc.):
£187.18 ➡️ £194.32 per week - Statutory Sick Pay (SSP):
£118.75 ➡️ £123.25 per week
Why This Matters for Health & Social Care Providers
For CQC-regulated services, these increases are more than just administrative updates—they directly impact:
Financial Risk Exposure
Higher tribunal award caps increase the potential liability for unfair dismissal claims. In a sector where workforce challenges can lead to complex HR cases (e.g. capability, conduct, or safeguarding-related dismissals), this raises the stakes significantly.
Redundancy Planning & Service Reconfiguration
With ongoing pressures across the sector—including funding constraints, commissioning changes, and ICB restructuring—providers considering service changes or redundancies must account for higher statutory costs.
Workforce Management & Absence
Increased SSP and family-related payments will have a direct cost impact, particularly for providers with:
- High staff volumes
- Reliance on shift-based or agency cover
- Higher-than-average sickness or leave rates
Governance & CQC Expectations
Robust HR processes are a key component of Well-Led under the CQC’s Single Assessment Framework. Poorly managed HR cases, particularly dismissals, can lead not only to tribunal risk but also regulatory scrutiny.
Practical Steps Providers Should Take Now
To mitigate risk and remain compliant, providers should:
- Review HR policies and procedures to ensure alignment with current legislation
- Audit recent and ongoing HR cases (disciplinary, grievance, capability) for risk exposure
- Strengthen documentation and decision-making frameworks
- Train managers on fair and defensible processes
- Factor increased costs into financial planning and contingency models
How HLTH Compliance Can Support
At HLTH Compliance, we specialise in supporting health and social care providers to navigate exactly these types of regulatory and operational changes.
We can:
- Review and update your HR policies in line with the latest legislation
- Provide hands-on support with complex HR cases
- Strengthen your governance frameworks to align with CQC expectations
- Ensure your service is inspection-ready from a Well-Led perspective
📞 We also offer a complimentary call with our HR Director, where we can walk through how these changes specifically impact your service and outline practical next steps.
Final Thought
While these increases may appear incremental, their cumulative impact, particularly alongside upcoming reforms under the Employment Rights Act 2025, signals a continued shift towards greater employer accountability and employee protection.
For health and social care providers, proactive preparation is essential.
HLTH Compliance is here to support you, ensuring you remain compliant, protected, and inspection-ready.