What is changing for the 2026/27 financial year?

We’re preparing Tes EduPay and Budget Planning Software (BPS) for the 2026/27 financial year and wanted to share an overview of the upcoming updates.

From 6 April 2026, several statutory changes will come into effect.

All updates will be applied automatically; no action is required on your part.

Routine updates

To support year-end processing and ensure a smooth rollover into 2026/27, we are implementing the following updates in EduPay and BPS:

•    Provisioning the FPS and EPS reports

•    Provisioning TPS and LGPS pension years

•    Generating P60 notifications

•    Applying employee tax codes from P9 data

•    Adding 2026–27 in BPS as Future/Next Year

Statutory updates 

The UK government has announced several changes to pay, deductions, and statutory leave. EduPay and BPS will be updated to reflect these.

Updated thresholds and rates:

•    National Minimum Wage and National Living Wage updates

•    Statutory Sick Pay (SSP) rate updates

•    Increase in the National Insurance Lower Earnings Limit

•    Increase in the minimum earnings threshold for statutory family-related pay

•    Increased statutory pay rates for:

o    Maternity

o    Paternity

o    Shared Parental

o    Adoption

o    Neonatal

•    Introduction of Student Loan Plan 5

•    Updated thresholds for Student Loan Plans 1, 2 and 4

•    Updated pension rates and thresholds

Changes to Statutory Sick Pay (SSP)

From 6 April 2026:

•    SSP will no longer require a minimum earnings threshold (for absences starting after 5 April 2026)

•    Eligible employees will receive SSP from their first day of absence (previously the fourth day)

Day one eligibility for key leave types

From 6 April 2026, employees will be eligible from their first day of employment for:

•    Unpaid Paternity Leave

•    Unpaid Bereavement Leave

•    Unpaid Parental Leave

Do I need to do anything?

No, all changes will be implemented automatically by Tes.

We’re sharing this update to keep you informed and ensure you can be confident that the system remains fully aligned with current legislation.

If you have any questions, our Customer Support team is always happy to help.

Please contact us at edupay-support@tes.com.