ERA – sick pay implementing regulations published
The government has issued implementation provisions and transitional arrangements for statutory sick pay changes taking effect on 6 April. The good news is that this new ERA sick pay legislation aligns with the government guidance on the new sick pay arrangements that we highlighted last week, particularly the transitional arrangements covering sickness absence that straddles 6 April. Acas has also updated its sick pay guidance, setting out details of the 6 April changes, including the transitional provisions.
Low Pay Commission consults on future minimum wage increases
The Low Pay Commission (LPC) has launched its 2026 consultation to gather evidence ahead of recommending new National Minimum Wage (NMW) and National Living Wage (NLW) rates to apply from April 2027. Effective yesterday, the NLW increased to £12.71 per hour for workers aged 21 and over. Looking ahead, the government has asked the LPC to continue using two thirds of median earnings as the key benchmark for future rate setting. Based on current forecasts, the LPC estimates that maintaining the NLW at that level would require an increase to between £13.02 and £13.34 in April 2027, with a central estimate of £13.18. This represents a potential rise of 2.4% to 5.0% over the current rate. The LPC stresses that these figures remain indicative. The consultation also explores future increases for younger workers and apprentices. In March, our briefing explained that the government has restated its long term commitment to aligning the 18 to 20 minimum wage rate with the NLW, while giving the LPC flexibility over timing and requiring it to prioritise young workers’ employment prospects. With this remit in mind, the LPC is also seeking views on the state of the youth labour market, the effects of their most recent recommendations for young workers and the impacts of extending the NLW to 18 to 20 year olds. The consultation runs until 26 June 2026.
Keep Britain Working Review publishes progress update
The government has published an update on the Keep Britain Working Review, explaining how it has begun implementing the recommendations from the November 2025 final report and confirming key timelines for delivery. Since publication, the government has moved immediately into a three year “Vanguard phase” to test employer led solutions and build the evidence needed to scale reforms nationally. Participation has expanded quickly, with around 150 organisations now involved. During Year 1 (2025–26), the Keep Britain Working programme focuses on three priority areas:
• employer led “sprints” are developing a Healthy Working Lifecycle standard covering prevention, stay in work and return to work practices;
• the programme is defining a new Workplace Health Provision in collaboration with public and private providers, including potential reforms to the Fit Note system that give employers greater involvement and may reduce reliance on Fit Notes; and
• a dedicated data sprint will define how the programme measures success across workplace health initiatives, with those metrics feeding into a new Workplace Health Intelligence Unit that will drive and coordinate the Keep Britain Working programme.
Looking ahead, the government has committed to using evidence gathered to inform decisions at the next Spending Review, including potential financial or regulatory incentives for employers that adopt evidence based workplace health approaches. Employers may wish to track the programme’s outputs closely, given the potential for changes to how employee sickness and absence are managed.
Injury to feelings compensation guidelines increased
Vento bands, which guide the award of compensation for injury to feelings in discrimination and detriment cases, are now updated and take effect from 6 April 2026. They are:
• Lower band: £1,300 to £12,600;
• Middle band: £12,600 to £37,700; and
• Upper band: £37,700 to £62,900, but the most exceptionally serious cases may exceed this.
These limits are relevant to employers’ risk assessments and settlement offers when claims include allegations of injury to feelings.
Employment & Reward UK promotions
We are delighted to announce the Partner and Legal Direction promotions of several of our colleagues. Ben Brown and James Sullivan-Tailyour are promoted to Partner. Anthony Hollands is promoted to Legal Director. We wish our colleagues continued success!
