Changes to Statutory Sick Pay (SSP) mean the UK is experiencing its biggest change in decades, with major reforms coming from April 2026. The changes come into place from 6 April 2026 under the Employment Rights Act 2025. These changes will affect eligibility, payment calculations, payroll processes, and employee communications. It’s important for Employers to understand the changes and to act now to prepare for compliance and minimise disruption.
Key Changes to Statutory Sick Pay from April 2026
1. SSP Eligible From Day One
The current three unpaid “waiting days” will be abolished. This means SSP will be payable from the first day of sickness absence, not from the fourth day.
2. All Employees Eligible
The Lower Earnings Limit (LEL) requirement for SSP will be removed, allowing all employees — including low‑paid, part‑time, and casual workers — to qualify for SSP.
3. How SSP Is Calculated
From April 2026 SSP will be the lower of:
80% of an employee’s average weekly earnings (AWE), or
A flat weekly rate (expected to be £123.25, pending Parliamentary approval).
This ensures fairer support based on usual earnings while retaining a safety net via the flat rate.
4. Linked Periods of Sickness
The rules for linked periods of sickness remain the same — absences within 56 days count as one continuous period, with SSP payable for up to 28 weeks.
5. Transitional Protection
Employees already receiving SSP on 6 April 2026 won’t see a drop in payments mid-absence. They will continue on the existing flat rate during that absence, subject to conditions (e.g., return to work, end of contract).
What these changes mean.
- The new reforms give broader employee protection, with more workers able to take sickness absence without facing loss of earnings.
- Payroll complexity increases with processes supporting the new 80% calculation and day-one payments.
- Cost implications for employers, especially for short-term absences previously unpaid and for low-paid staff.
- HR policy needs updating. Existing policies may reference waiting days, minimum earnings thresholds or outdated SSP amounts.
By planning now and updating systems and policies ahead of 6 April 2026, employers can ensure compliance and reduce confusion when the statutory sick pay reforms take effect. If you have any questions about the changes, please get in touch and a member of our payroll team will be happy to help you.
