Statutory Parental Pay Rates 2026/27

A guide for UK employers and payroll teams

Every April, the UK government reviews the statutory rates that apply to parental leave and pay. The 2026/27 tax year is no exception, and the changes go beyond a simple uplift in figures. Alongside the new weekly rate, two changes to parental leave entitlement come into effect on 6 April 2026, along with a new standalone right for bereaved partners.

This guide sets out the updated rates, explains how recovery from HMRC works, and covers the wider changes to parental leave that payroll teams and people managers need to plan for.

Why these rates change every year

Statutory parental payments are reviewed annually and adjusted in line with the Consumer Prices Index (CPI), a measure of inflation calculated by the Office for National Statistics. The government typically uses the CPI figure from the previous September to set the new rate, which then applies from the following April.

From 6 April 2026, the standard weekly rate for most statutory parental payments rises to £194.32, up from £187.18 in 2025/26. That represents an increase of 3.8%, in line with the CPI figure recorded in September 2025.

This uplift applies to several distinct types of parental pay, not just maternity pay, so it is worth checking each category applies correctly within your payroll system before the new tax year begins.

Breakdown of the 2026/27 statutory rates

The weekly rate table

The table below sets out the statutory rates that apply from 6 April 2026 across each type of parental payment.

Source: GOV.UK — rates and thresholds for employers 2026 to 2027

The lower earnings limit threshold

Eligibility for most statutory parental payments depends on an employee earning at least the Lower Earnings Limit (LEL). From 6 April 2026, the LEL increases from £125.00 to £129.00 per week.

This threshold is easy to overlook, but it matters. An employee whose average weekly earnings fall just below the LEL will not qualify for statutory pay, regardless of their length of service. Payroll teams should review any employees close to this line, particularly those on variable hours or zero-hours contracts, ahead of the new tax year.

Recovering statutory payments from HMRC

Most employers do not bear the full cost of statutory parental pay. HM Revenue and Customs (HMRC) allows organisations to reclaim a proportion, and in some cases the full amount plus additional compensation.

Standard recovery for larger employers

Where an organisation’s total Class 1 National Insurance contributions exceeded £45,000 in the previous tax year, the standard recovery rate applies: 92% of statutory parental payments can be reclaimed from HMRC.

Small Employers’ Relief

Where total Class 1 National Insurance contributions were £45,000 or less, an organisation qualifies for Small Employers’ Relief. This allows recovery of 100% of the payment, plus a compensation amount. From 6 April 2026, that compensation rate rises from 8.5% to 9%, taking the total recoverable amount to 109%.

In practical terms, this means a smaller employer will recover slightly more than it paid out, offsetting a portion of its wider payroll costs.

Organisation examples: how this looks in practice

A small nursery business with total Class 1 National Insurance contributions of £38,000 last year pays an employee £194.32 a week in Statutory Maternity Pay for 33 weeks. Because the organisation qualifies for Small Employers’ Relief, it can reclaim 109% of that amount from HMRC, rather than the standard 92%. Over the full statutory period, that difference is worth noting when forecasting payroll cash flow.

A mid-sized logistics firm, whose National Insurance contributions comfortably exceed the £45,000 threshold, reclaims at the standard 92% rate. This is worth factoring into annual budgeting, particularly where several employees take parental leave within the same tax year.

A new starter joining an organisation in May 2026 wants to take paternity leave in July. Under the new rules, they are entitled to take the leave from day one of employment, since the 26-week qualifying period for the leave itself has been removed. However, they would not yet qualify for Statutory Paternity Pay, since the 26-week service requirement for the pay element remains in place. This distinction between the right to leave and the right to pay is one that catches many employers out, and is worth communicating clearly to new employees.

What else has changed for parental leave in 2026/27

The rate increase is not the only change taking effect this tax year. Two further developments affect how parental leave operates in practice.

Paternity leave and unpaid parental leave become day one rights

From 6 April 2026, employees no longer need a minimum period of service to take paternity leave or unpaid parental leave. Previously, paternity leave required 26 weeks of continuous service, and unpaid parental leave required a full year. Both are now available from an employee’s first day.

As set out in the example above, this applies to the right to take leave, not necessarily the right to be paid for it. Statutory Paternity Pay still requires 26 weeks of continuous service, so an employee may be able to take the leave before they qualify for the associated pay.

A new right for bereaved partners

The Bereaved Partners’ Paternity Leave Regulations 2026 introduce a standalone entitlement from 6 April 2026: partners can take up to 52 weeks of unpaid leave if a mother or primary adopter dies. This sits alongside, and is separate from, existing Statutory Parental Bereavement Pay.

Best practice for keeping parental pay compliant

Getting parental pay right consistently, year after year, tends to come down to a small number of habits rather than any single fix. Consider the following:

• Review employees near the LEL threshold at the start of each tax year, not just when a leave request is submitted.
• Separate the right to leave from the right to pay in any guidance given to line managers, so new starters are not given inaccurate expectations.
• Confirm which recovery rate applies to your organisation annually, since Class 1 National Insurance contributions can shift year on year and change which rate you qualify for.
• Update payslip templates and payroll system settings before 6 April, rather than retrospectively correcting underpayments.
• Keep a record of qualifying dates for each type of parental leave, particularly where an employee’s eligibility for leave and pay fall on different dates.
• Brief HR and people managers on the bereaved partners’ entitlement, as this is a newer right that may not yet be reflected in existing policy documents.

A large proportion of parental pay errors stem from outdated internal documentation rather than miscalculation, so a policy review is often as valuable as a system update.

Getting your 2026/27 parental pay rates right

Statutory parental pay involves several moving parts: the headline rate, the earnings threshold, the recovery percentage, and now two changes to underlying leave entitlement. Missing any one of these can result in incorrect payments or incorrect employee guidance, both of which are time-consuming to correct after the fact.

If you would like support making sure your parental pay calculations, recovery claims, and leave policies reflect the 2026/27 changes, Just Payroll Services can help. Our payroll software applies statutory rates and thresholds automatically, and our team of CIPP-qualified payrollers can advise on the practical detail behind these changes, including cases that sit close to the LEL threshold or involve overlapping leave types.

For organisations managing parental leave across multiple jurisdictions, our international payroll service can support consistency across UK and global teams. You may also find our related guides useful: our recent piece on Statutory Sick Pay rates for 2026/27 and our guide to RTI submissions both cover related compliance areas worth reviewing alongside this update.