Statutory payments form a core part of employer responsibilities in the UK. When employees are unable to work due to illness, pregnancy, adoption, or caring for a new child, employers must pay statutory amounts and administer the claims correctly. Getting this right protects both your business and your employees.
This guide covers the main statutory payments you need to understand as an employer in East Yorkshire.
Statutory Sick Pay (SSP)
From 6 April 2026, eligible employees can receive Statutory Sick Pay from their first full qualifying day of sickness. The former Lower Earnings Limit and waiting-day rules no longer apply.
For 2026/27, SSP is the lower of £123.25 a week or 80% of the employee’s average weekly earnings. It remains payable for up to 28 weeks, subject to the statutory rules.
Records and evidence
Keep clear records of sickness dates, qualifying days, average weekly earnings and SSP paid. Employees normally self-certify for the first seven calendar days; after that, you can ask for medical evidence such as a fit note.
The current rules are explained in the official GOV.UK guidance for sickness absences spanning 6 April 2026.
Statutory Maternity Pay (SMP)
SMP is paid to employees who are having a baby and meet the qualifying conditions. It is paid for up to 39 weeks, with the first six weeks at 90% of average weekly earnings and the remaining 33 weeks at the lower of 90% of average earnings or the flat weekly rate.
To qualify, the employee must have worked for you continuously for at least 26 weeks by the end of the 15th week before the expected week of childbirth. They must also earn on average at least the Lower Earnings Limit per week.
Calculating Average Earnings
Average weekly earnings for SMP purposes are calculated over a specific period: the eight weeks (for weekly paid employees) or two months (for monthly paid employees) ending with the last normal payday on or before the Saturday at the end of the qualifying week.
This calculation period is fixed by law. You cannot change it, and the employee’s earnings during this period determine both whether they qualify and the amount of their higher-rate SMP.
Start Dates and Notification
SMP can start from 11 weeks before the expected week of childbirth. The employee chooses when to start their maternity leave and SMP, unless the baby arrives early or they are off sick with a pregnancy-related illness in the last four weeks.
The employee must give you at least 28 days’ notice of when they want SMP to start, or as soon as reasonably practicable if that is not possible. They must also provide medical evidence of the expected week of childbirth, usually a MATB1 form from their midwife or doctor.
Statutory Adoption Pay (SAP)
SAP mirrors SMP in many respects. It is paid to employees who adopt a child and meet the qualifying conditions. The payment structure is the same: 39 weeks total, with six weeks at 90% of average earnings and 33 weeks at the lower rate.
Qualifying conditions require 26 weeks’ continuous employment by the week you are matched with a child. Only one adopter in a couple can receive SAP; the other may be entitled to Statutory Paternity Pay instead.
Evidence and Documentation
The employee must provide evidence of the adoption, usually a matching certificate from the adoption agency. For overseas adoptions, different evidence requirements apply.
SAP can start from 14 days before the expected placement date. The employee must give 28 days’ notice of when they want their adoption leave and SAP to start.
Statutory Paternity Pay (SPP)
SPP is available to employees whose partner is having a baby, adopting a child, or having a child through surrogacy. It provides up to two weeks of pay at the flat weekly rate or 90% of average earnings if lower.
The two weeks can be taken as a single block or as two separate weeks. Paternity leave and pay must be taken within 52 weeks of the birth or adoption placement.
Eligibility Requirements
The employee must have worked for you continuously for at least 26 weeks by either the 15th week before the expected week of childbirth (for birth) or the week they are matched with a child (for adoption). They must also earn at least the Lower Earnings Limit.
The employee must be taking time off to care for the child or support the mother or adopter. They cannot take paternity leave if they are taking adoption leave for the same child.
Recovering Statutory Payments
You can recover some or all of the statutory parental payments you make from HMRC, but Statutory Sick Pay cannot be recovered. Small employers, defined as those whose total Class 1 National Insurance liability in the qualifying tax year was £45,000 or less, can recover 109% of statutory payments.
Larger employers can recover 92% of statutory payments. The recovery is made by reducing your PAYE and National Insurance payments to HMRC. You claim through your Employer Payment Summary each month.
Why Statutory Payments Need Expert Handling
Calculating statutory payments correctly requires precise attention to qualifying periods, average earnings calculations, and payment dates. Errors can mean overpaying (which you cannot reclaim) or underpaying (which exposes you to claims and penalties).
For Hull and East Yorkshire businesses, having professional payroll support means these complex calculations are handled accurately. We deal with statutory payments regularly and understand the nuances that catch out occasional administrators.
If you have an employee expecting a baby, going through adoption, or dealing with long-term sickness, speak to us about how we can help manage the payroll aspects. Getting it right from the start saves problems later.
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