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Rising cost of living

The cost of living increased sharply across the UK during 2021 and 2022. The annual rate of inflation reached 11.1% in October 2022, a 41-year high, before easing in subsequent months. It was 8.7% in April 2023.

Statutory parental pay

Types of statutory parental pay include:

  • Statutory Maternity Pay (SMP)
  • Statutory Paternity Pay (SPP)
  • Shared Parental Pay (ShPP)
  • Statutory Adoption Pay (SAP)
  • Statutory Parental Bereavement Pay (SPBP)
  • Maternity Allowance (MA)

In addition the Neonatal Care (Leave and Pay) Act 2023 will introduce a new entitlement to statutory Neonatal Care Pay once relevant secondary legislation is passed.

The rates at which these types of statutory payments are made come in two types:

  • Payments made at 90% of an employee’s average weekly earnings (before tax, usually averaged across 8 weeks leading up to the 15th week before the week the baby is due).
  • A flat rate, currently £172.48 a week.

In April 2023 the flat rate was increased in the Social Security Benefits Up-rating Order 2023 from £156.66 to £172.48; an increase of 10.1%.

In 2021/22, 204,200 individuals claimed Statutory Paternity Pay, whilst 350,000 individuals claimed Statutory Maternity Pay.

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