Statutory Sick Pay Changes from 6 April 2026: What Employers Must Know

Statutory Sick Pay Is Changing: What UK Employers Need to Do Now

Significant reforms to Statutory Sick Pay (SSP) come into force on 6 April 2026, and they represent the most substantial shake-up to the scheme in decades. The changes affect when SSP becomes payable, who qualifies, and how the rate is calculated. For many small and medium-sized businesses, the practical and financial implications could be considerable.

If you haven't already started reviewing your sickness absence policies and payroll configurations, now really is the time to act.

What Is Changing from 6 April 2026?

1. SSP Will Be Payable from the First Full Day of Sickness

Under the current rules, SSP is not payable for the first three days of sickness absence - these are known as "waiting days". Employees only begin to receive SSP from the fourth qualifying day of sickness.

From 6 April 2026, this waiting period is abolished entirely. SSP will be payable from the first full day of sickness absence. This brings the UK more closely in line with several other countries and reflects the government's aim to better support workers who simply cannot afford to lose three days' pay before SSP kicks in.

For employers, this means that short-term absences of one to three days - which previously carried no SSP liability whatsoever - will now trigger a payment obligation from day one.

2. The Lower Earnings Limit Qualification Threshold Is Removed

Currently, employees must earn at least the Lower Earnings Limit (LEL) - £125 per week in 2025/26 - to qualify for SSP. Workers earning below this threshold have no entitlement, which has historically excluded a significant portion of part-time and low-paid workers.

From 6 April 2026, this earnings threshold is removed entirely. All employees will qualify for SSP regardless of their weekly earnings, provided they meet the other eligibility conditions (they must be classed as an employee and must be sick for at least the minimum qualifying period).

This change will be particularly relevant for businesses that rely heavily on part-time staff, casual workers on fixed-hours contracts or employees in lower-paid roles - sectors such as retail, hospitality, and social care are likely to feel the impact most acutely.

3. A New Earnings-Linked Calculation for SSP

The current SSP rate is a flat weekly amount set by the government each April (£116.75 per week in 2025/26). From 6 April 2026, a new calculation method is introduced. It's worth noting that this is where things get a little more nuanced for payroll teams.

SSP will be paid at whichever is the lower of:

• 80% of the employee's average weekly earnings, or
• The standard flat weekly SSP rate (as set for 2026/27)

This means that for lower-paid employees - those whose 80% of average weekly earnings falls below the flat rate - SSP will effectively be earnings-proportionate rather than a fixed amount. For better-paid employees, the flat rate cap still applies, meaning they receive the standard weekly amount rather than 80% of their full pay.

Worked Example

Consider two employees, both off sick for one week from 6 April 2026:

• Employee A earns £100 per week. 80% of £100 = £80. If the flat SSP rate is, say, £118, then Employee A receives £80 (the lower figure).
• Employee B earns £200 per week. 80% of £200 = £160. If the flat SSP rate is £118, then Employee B receives £118 (the lower figure).

Note: The exact flat weekly SSP rate for 2026/27 will be confirmed by the government ahead of April 2026. Employers should check HMRC guidance when it is published.

Why Are These Changes Being Made?

The reforms form part of the government's broader Employment Rights Bill agenda, which aims to strengthen protections for workers - particularly those in lower-paid or insecure employment. The removal of waiting days and the earnings threshold addresses longstanding criticism that the existing SSP framework left the most vulnerable workers without financial support precisely when they needed it most.

The changes were first trailed in the government's Making Work Pay plan and subsequently legislated through amendments to the Social Security Contributions and Benefits Act 1992.

What This Means for Your Business

The cumulative effect of these three changes is that:

• More employees will qualify for SSP (removal of LEL).
• SSP will be payable sooner in an absence (day one rather than day four).
• The amount payable for lower-earning staff will be tied to their actual earnings.

For most SMEs, this represents a real increase in SSP liability - both in terms of the number of employees covered and the frequency with which payments are triggered. Businesses with high levels of short-term sickness absence will notice the difference most quickly.

Action Steps for Employers

There's a clear checklist of actions you should work through before 6 April 2026. Don't leave this to the last minute.

1. Review and update your sickness absence policy. Remove any references to the three waiting days and update the policy to reflect that SSP is payable from day one of qualifying absence. Ensure the policy clearly explains the new calculation method for lower-paid staff.
2. Update your payroll software or settings. Speak to your payroll provider or software supplier to confirm they will be updating their systems in time for April 2026. Verify that the waiting-day rule is removed and that the earnings-based SSP calculation is correctly configured.
3. Identify employees newly eligible for SSP. Review your workforce for any employees currently excluded because their earnings fall below the LEL. These individuals will now qualify, and you should ensure your payroll records reflect this.
4. Model the financial impact. Consider your historical sickness absence data and estimate what the increased SSP liability might look like. This is particularly important if you have a high proportion of part-time or low-paid staff.
5. Communicate changes to employees. Update your employee handbook and consider issuing a brief communication to staff explaining the new entitlements. Employees who previously had no SSP entitlement should be made aware of their new rights.
6. Review contractual sick pay arrangements. If you offer enhanced contractual sick pay above the statutory minimum, check whether your policy documents need updating to remain consistent with the new SSP rules.

A Note on Record-Keeping

Under the Social Security Administration Act 1992, employers are required to keep accurate records of SSP payments. With a new earnings-linked calculation in place, it will be more important than ever to maintain up-to-date records of average weekly earnings for each employee, alongside absence records. However the practical reality is that this only works if your HR and payroll systems are properly aligned - so make sure absence reporting procedures are clearly communicated to line managers too.

Key Takeaways

From 6 April 2026: SSP is payable from day one of sickness, the Lower Earnings Limit is removed, and SSP is calculated at 80% of average weekly earnings or the flat rate - whichever is lower. Act now to update your policies and payroll.

These are meaningful changes that will affect the day-to-day management of sickness absence across UK businesses of all sizes. Thankfully, there's still time to get ahead of this - but the earlier you prepare, the smoother the transition will be. If you're unsure how the changes apply to your specific workforce, consider seeking advice from a qualified HR consultant or employment law adviser.