The Statutory Maternity Pay (Compensation of Employers) (Amendment) Regulations 2025
The 2025 regulations amended existing statutory maternity pay regulations to increase the additional payment to small employers from 3.0% to 8.5% of statutory maternity pay.
These regulations, effective April 6th, 2025, amend the 1994 Statutory Maternity Pay regulations concerning compensation for small employers.
They increase the additional payment small employers receive from 3% to 8.5% of statutory maternity pay.
This change applies across the UK, with specific provisions for Northern Ireland.
The amendment is based on a pre-determined formula and is projected to have minimal impact on the private, voluntary, or community sectors.
Arguments For
Increased Support for Small Employers: The increase in the additional payment helps small businesses offset the cost of statutory maternity pay, potentially reducing financial strain and supporting their contribution to the workforce.
Alignment with Economic Conditions: The adjustment of the percentage may reflect changes in economic conditions, aiming to maintain a fair balance between employer burden and employee benefits.
Pre-determined Formula: The amendment follows a pre-established formula, suggesting a transparent and predictable process for future adjustments.
Minimal Impact on Third Sector: The explanatory note indicates a negligible impact on the private, voluntary, or community sectors, minimizing concerns about unintended consequences.
Arguments Against
Potential for Inflationary Pressure: Increased expenditure by the government might indirectly contribute to inflationary pressures, affecting overall economic stability.
Limited Scope of Impact: The amendments only address a specific aspect of maternity pay compensation, leaving other challenges related to parental leave and employment policies unaddressed.
Lack of Detailed Impact Assessment: The absence of a full impact assessment could indicate a lack of thorough consideration of potential broader implications of the changes.
Administrative Burden for small businesses to navigate the updated regulations.
- Citation and commencement (1) These Regulations may be cited as the Statutory Maternity Pay (Compensation of Employers) (Amendment) Regulations 2025. (2) These Regulations come into force on 6th April 2025.
This section establishes the title of the regulations as the 'Statutory Maternity Pay (Compensation of Employers) (Amendment) Regulations 2025' and sets their effective date as April 6th, 2025.
- Extent (1) Regulations 1 and 2 extend to the whole of the United Kingdom. (2) Regulation 3 extends to England and Wales and Scotland. (3) Regulation 4 extends to Northern Ireland only.
This section details the geographical scope of the regulations.
Regulations 1 and 2 apply to the entire UK. Regulation 3 applies to England, Wales, and Scotland.
Regulation 4 applies solely to Northern Ireland.
- Amendment of the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994 In regulation 3 of the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994 (determination of the amount of additional payment to which a small employer shall be entitled)— (a) for “6th April 2011” substitute “6th April 2025”; and (b) for “3.0 per cent.” substitute “8.5 per cent.”
This section amends regulation 3 of the 1994 Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations.
Specifically, it updates the effective date from April 6th, 2011, to April 6th, 2025, and increases the additional payment percentage for small employers from 3% to 8.5%.
- Amendment of the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations (Northern Ireland) 1994 In regulation 3 of the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations (Northern Ireland) 1994 (amount of additional payment to which a small employer shall be entitled)— (a) for “6th April 2011” substitute “6th April 2025”; and (b) for “3.0 per cent.” substitute “8.5 per cent.”
This section mirrors the previous one but applies to the equivalent Northern Ireland regulations of 1994.
It updates the effective date and increases the additional payment percentage for small employers in Northern Ireland from 3% to 8.5%.
Signed by authority of the Secretary of State for Work and Pensions Sherlock Minister of State Department for Work and Pensions 11th March 2025 The Commissioners for His Majesty's Revenue and Customs hereby concur Angela MacDonald Carol Bristow Two of the Commissioners for His Majesty’s Revenue and Customs 10th March 2025
This section contains the signatures and titles of the authorizing officials, showing approval from the Department for Work and Pensions and His Majesty's Revenue and Customs.
Explanatory Note (This note is not part of the Regulations) These Regulations amend the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994 (S.I. 1994/1882) (“the principal GB regulations”) and the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations (Northern Ireland) 1994 (S.R. 1994 No. 271) (“the principal NI Regulations”). Amongst other things, the principal GB Regulations and the principal NI Regulations enable a small employer (as that term is defined within those Regulations) to recover payments of statutory maternity pay in full, as well as an additional amount in respect of such pay. Regulations 3(b) and 4(b) of these Regulations increase the additional amount that small employers are entitled to recover from 3.0 per cent. to 8.5 per cent. of the amount of statutory maternity pay they have paid out. This increase takes effect from 6th April 2025. These Regulations amend an existing percentage figure in accordance with a pre-determined formula. A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private sector, voluntary sector or community bodies is foreseen.
The explanatory note summarizes the regulations' purpose, which is to amend the 1994 regulations concerning statutory maternity pay compensation for small employers.
The key change is increasing the additional recoverable amount from 3% to 8.5%, effective from April 6th, 2025.
The note also clarifies that the amendment aligns with a pre-existing formula and that no major impact on the private, voluntary, or community sectors is anticipated, hence the absence of a full impact assessment.
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