Changes to statutory Limits

Every April the government uplifts statutory allowances in line with inflationThe information below relates to employment related issues

Vento band updates

The Vento guidelines have been updated as follows for claims presented at the Tribunal on or after 6 April 2023: Vento refers to the damages which can be awarded if a claim for discrimination is successful. The amounts awarded are at the discretion of the judge and depend on the facts of the case

  • lower band is increased to £11,200 for less serious cases;
  • middle band is increased to between £11,200 and £33,700, and
  • upper band is increased to between £33,700 to £56,200 for the most serious cases.

An award exceeding £56,200 may be made in the most exceptional cases.
This means that ‘the middle of the middle band’ will now be £22450.
These come into effect from 6 April 2023.
The main increases for successful unfair dismissal claims are:

  • The maximum compensatory award will increase to £105,707 (previously £93,878).
  • A ‘week’s pay’ (for basic award and redundancy payments) will increase to £643 (previously £571). This will mean that the maximum statutory redundancy pay entitlement will increase from £17,130 to £19,290*

(*for people who have worked 20 years or more aged over 41, calculated as [20 x 1.5 x £643])

NLW/NMW increases

There is also set to be the largest increase of National Living Wage and national minimum wage rates. The increases in April 2023 are (per hour):

  •  23 year-olds and over from £9.50 to £10.42
  • 21 and 22 year-olds from £9.18 to £10.18
  • 18 to 20 year-olds from £6.83 to £7.49
  • 16 and 17 year-olds and apprentices from £4.81 to £5.28

Family related pay will increase to £172.48 per week. This includes statutory maternity, paternity, adoption and shared parental leave.
Statutory sick pay rises to £109.40 per week