Government signals flexibility in removing minimum wage age banding
The government has updated its remit to the Low Pay Commission, which advises on annual increases to the national living and minimum wages, and it indicates that the LPC can decide how quickly to remove age bands. The government’s instruction to the LPC states that it remains committed to removing age bands because it considers them discriminatory. It also confirms that the LPC can determine the pace and final timing of this alignment, and it asks the LPC to prioritise the employment prospects of younger workers when doing so. As a result, the government has not set any firm timeline for equalisation and has allowed the LPC to decide when and how the change should happen.
Compensation limit increases from 6 April
The government has announced annual increases to compensation payment limits used for statutory payments including unfair dismissal and redundancy. The most notable changes are:
• a week's pay will be capped at £751 for basic awards and statutory redundancy payments (currently £719); and
• the cap on compensatory awards in unfair dismissal cases will be £123,543 (currently £118,223).
This could impact on payments due in respect of currently anticipated dismissals. The new caps will apply in England, Wales and Scotland.
Separate caps apply in Northern Ireland and although draft regulations have not yet been approved, the proposal is for a week’s pay to be capped at £783 (currently £749) and the compensatory award to be capped at £123,785 (currently £118,455)
Rising ET caseload reaches new high
New tribunal statistics from the Ministry of Justice show that the ET caseload of single open claims has climbed to 58,000. This increase marks the third consecutive quarter in which the ET caseload has exceeded the previous peak of 44,000. That peak occurred in Q3 2020/21. Overall, volumes now sit 49% higher than during the same period in 2024/25 and this rise reflects sustained pressure on the system and a continued upward trend in incoming and unresolved claims.
Bereaved partner’s paternity leave regulations
The government published regulations to ensure that bereaved partner’s paternity leave (BPPL) becomes a ‘day one’ right in relation to a child whose mother or primary caregiver dies on or after 6 April. This new right will give fathers and partners a ‘day one’ entitlement to take up to 52 weeks of BPPL following a child’s birth or placement for adoption when the child’s mother or primary caregiver dies. There are around 180 maternal deaths within 12 months of childbirth each year and the government estimates that half of those eligible will take up the entitlement each year. Alongside this new right, on 6 April, the ERA will also make standard rights to paternity leave and unpaid parental leave ‘day one’ rights, removing existing qualifying periods of employment.
Parliament launches inquiry into AI’s impact on the workforce
Parliament’s Business and Trade Committee has launched a major inquiry into how AI is reshaping the world of work, aiming to understand both the opportunities and risks emerging from rapid technological change. The inquiry, now open for evidence submissions until 3 April, will examine how AI-driven advances in computing power, data availability and large language models are transforming business operations and the labour market. According to the committee, AI adoption is accelerating but remains uneven across sectors. While the technology promises to boost productivity, create new industries and generate jobs, it may also disrupt business models and displace existing roles. The inquiry will assess these impacts and make recommendations on the government’s priorities for supporting businesses and workers through this transition.
Call for evidence launched on inclusivity in tech sector
The government has launched a new call for evidence to support its ambition to build a tech sector that enables wider participation and fairer career outcomes. The Women in Tech Taskforce, created last December, leads this initiative and works to remove the systemic barriers that restrict who enter, progress within, and lead the industry. Emerging technologies continue to reshape how and where people work, which makes inclusion essential to ensuring that the future tech workforce reflects society. Despite the sector’s growth, representation remains uneven. Women and non binary people make up only 29% of UK tech employees and hold just 21% of senior roles. Ethnic minorities represent 25% of the tech workforce but occupy only 14% of senior positions. Disabled workers comprise only 6% of tech employees compared with 23% of the wider UK workforce. The call for evidence, which closes on 23 April, asks organisations to share interventions which have successfully strengthened participation and improved career pathways for under represented groups.
Immigration: New record keeping obligations for sponsors
We explained last week that the Home Office updated its Sponsor Guidance on 6 March. We have received a lot of employer interest around new document retention duties linked to worker welfare. Sponsors must inform sponsored workers of their key employment rights, including national minimum wage entitlement and joining trade unions. Sponsors must also keep evidence proving that they have provided this minimum employment information. Although existing employment contracts or mandatory training may already address some of these points, sponsors should create a clear, auditable trail for UKVI review. Sponsors may also choose to highlight relevant policies or resources to sponsored workers in written communications that they can then store on file. For more information please be in touch with your usual Pinsent Masons or our Immigration team directly.
