Upcoming changes to Statutory Sick Pay (SSP) from April 2026

The Government has announced significant changes to Statutory Sick Pay (SSP), set to take effect from April 2026. These reforms, part of the broader Employment Rights Bill, aim to enhance worker protections and make SSP more accessible and inclusive. Here’s a detailed look at what’s changing and how it might impact both employees and employers.

Key changes to SSP

Day-one entitlement

• Current system: Under the existing rules, SSP is payable from the fourth day of sickness absence, after three ‘waiting’ days.
• New system: From April 2026, SSP will be payable from the first day an employee is off sick. This change aims to encourage employees to take necessary time off as soon as they become unwell, potentially aiding quicker recovery and reducing the risk of spreading illness at work.

Removal of the Lower Earnings Limit (LEL)

• Current system: Employees must earn at least £125 per week to qualify for SSP.
• New system: The earnings threshold will be abolished, making SSP accessible to all employees regardless of their earnings. For those earning below the current LEL, SSP will be paid at 80% of their average weekly earnings, provided this amount is lower than the standard SSP rate.

Implications for employees

Immediate financial support:
The elimination of the waiting period means employees will receive financial support from the first day of illness, reducing the financial strain during short-term sickness.

Inclusivity:
Lower-income and part-time workers, who previously did not qualify for SSP, will now be covered.

Implications for employers

Increased costs:
Employers will need to budget for increased SSP liabilities, especially those with a high incidence of short-term sickness absence. Unlike maternity or paternity pay, SSP costs cannot be reclaimed from the Government.

Policy updates:
Employment contracts and sickness policies will need to be revised to reflect these changes. Clear internal policies will be essential to manage attendance and prevent misuse of the new SSP provisions.

Preparing for the changes

While the implementation date is still some time away, it’s crucial for employers to start planning now. Here are some steps to consider:

• Budgeting: Plan for the increased financial burden of SSP, particularly if your business experiences frequent short-term absences.
• Training: Update HR and payroll teams on the new compliance requirements to make sure implementation is smooth.
• Policy review: Update employment contracts and sickness policies to align with the new SSP rules, even if you offer enhanced company sick pay schemes.

Need help?

The upcoming changes to SSP represent a significant shift in how workplace health and support are managed. By making SSP more accessible and inclusive, the Government aims to better reflect modern working patterns and the needs of today’s workforce. Employers should take proactive steps to prepare for these changes, ensuring compliance and maintaining a supportive work environment.

The SSP changes will be covered in our new tax year employer bulletin for 2026/27, due to be released in February/March 2026. Should you have any questions in the meantime, please don’t hesitate to reach out.

Get in touch with your usual Larking Gowen contact or email enquiry@larking-gowen.co.uk.

Dannielle Chapman