Statutory Sick Pay Changes: Are You Ready?
From 6 April 2026, important changes to Statutory Sick Pay (SSP) will come into effect under the Employment Rights Act 2025. These reforms are designed to make sick pay more accessible, particularly for lower-paid workers. For employers, it’s important to understand how the new rules will work and ensure your payroll processes are ready.
What are the SSP changes involved?
- Day One Payment: The three-day waiting period is abolished; SSP is payable from the first day of sickness.
- Removal of Lower Earnings Limit (LEL): Employees no longer need to earn a minimum amount of £125 per week to qualify, extending coverage to more part-time and low-paid workers.
- New Rate Calculation: SSP will be 80% of average weekly earnings (AWE) or the statutory flat rate of £123.25 per week, whichever is lower.
- Increased Costs: These reforms are expected to increase employer costs by approximately £450 million per year.
When the new rules apply
The rules that apply will depend on when the sickness absence begins:
- Absences starting before 6 April 2026 will follow the current SSP rules.
- Absences starting on or after 6 April 2026 will follow the new system.
This change will apply across the entire United Kingdom.
Actions for employers
As an employer, you are responsible for operating SSP through your payroll systems. This means taking the following steps:
- Check that your payroll software will support the new rules.
- Speak with your payroll provider about readiness.
- Ensure your internal policies reflect the changes.
Payroll software providers have already received technical guidance to ensure their bookkeeping packages are updated accordingly.
Why this matters
It’s estimated that up to 1.3 million additional employees may become eligible for SSP under the new rules. Combined with payment from the first day of sickness, this is likely to increase both eligibility and employee awareness of SSP.
As a result, employers may see more queries from staff about entitlement and payment timing, particularly around the April 2026 transition.
If you have queries about how these changes might affect your business or payroll processes, please let us know. We’re helping clients ensure their payroll runs smoothly when the new rules take effect.
For more information, please visit the SSP Employer Guide at gov.uk.