As of April 2026 Statutory Sick Pay (SSP) will undergo significant changes under the Employment Rights Bill. The reforms are designed to make SSP more accessible and inclusive for all employees.
Key changes to SSP from April 2026
- Payment from day one: The current three-day waiting period before receiving SSP will be abolished. SSP will be paid from the very first day of sickness absence.
- Removal of the Lower Earnings Limit: All employees will be entitled to SSP, regardless of how much they earn. The current £125 per week minimum earnings threshold will be removed.
- Updated rate calculation: For employees earning below the old earnings threshold, SSP will be the lower of two amounts:
- 80% of their average weekly earnings.
- The flat weekly SSP rate, which is set to be £118.75 for 2025/2026, but is typically reviewed each April.
- New enforcement agency: The new Fair Work Agency, also scheduled to be established in April 2026, will be responsible for overseeing the enforcement of SSP.
What this means for employers
These changes will result in increased costs and HR/management of sickness absence for employers.
To prepare, employers should:
- Review and update current sickness and absence policies.
- Ensure payroll systems are updated to handle the new “day one” and earnings calculations.
- Train managers and HR staff on the new rules for fair and consistent application of these new measures and monitor sickness absence carefully.
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