From 6 April 2026, it is expected that the rules around Statutory Sick Pay (SSP) in the UK will change in significant ways. These are part of changes to The Employment Rights Bill which hasn’t been confirmed yet but is expected to become law in late 2025. These changes protect employees but also create higher costs and complexities for employers.
- SSP will be payable from day one of sickness
At the moment SSP is only paid from the fourth consecutive qualifying day of absence, with the first three days known as “waiting days.” From 6 April 2026, this waiting period will be abolished, and SSP will become payable from the first qualifying day of sickness.
Impact
- Employees will receive financial support immediately when they fall ill
- Employers will face an increase in SSP costs, particularly for short-term absences that previously ended before SSP became payable
Action Required
- Employers will need to ensure that payroll systems and absence tracking are updated so that SSP is triggered correctly from day one
- Policies and contracts that refer to “waiting days” should be reviewed and updated to reflect the new rule
- Removal of the earnings threshold (£123 per week)
In the 2025/26 tax year, to qualify for SSP an employee must earn at least the Lower Earnings Limit (LEL) of £123 per week. From April 2026, this threshold will be removed, making all employees eligible for SSP regardless of earnings.
Impact
- Employers will now need to pay SSP to low-paid, part-time, and irregular hours workers who were previously excluded
- This change will expand SSP entitlement to over one million additional workers, including those on zero-hour contracts and casual arrangements
- Employers should expect higher overall SSP costs, especially in sectors with many part-time or low-paid staff (e.g. retail, hospitality, care)
Action Required
- Employers need to ensure that their payroll systems remove the LEL check from SSP eligibility calculations
- New calculation method for low earners
Under current legislation, SSP is paid at a flat weekly rate (£116.75 per week for 2025/26). From April 2026, a new calculation rule will apply for employees with lower earnings (previously below the LEL):
SSP will be the lower of:
- 80% of the employee’s average weekly earnings, or
- the standard SSP flat rate set for the tax year.
Impact
- This ensures that low earners will receive support when off sick
Action Required
- Employers must ensure payroll teams and software are ready to handle the new formula correctly to avoid underpayments or overpayments
- Payslip clarity will be key, as employees may notice that SSP amounts vary depending on their typical earnings
These changes will affect all employers. As a payroll bureau we will be supporting our clients to ensure that this change is applied smoothly and that they remain compliant. If you would like to speak to us about how we can help, please get in touch