Statutory Sick Pay is changing significantly from 6 April 2026, with reforms under the Employment Rights Act 2025 representing the most substantive overhaul of the SSP framework in years. Three changes take effect simultaneously: the removal of waiting days, the abolition of the Lower Earnings Limit, and a revised rate calculation. Together they increase both the cost and the administrative complexity of managing sickness absence — and they require payroll systems, policies, and management processes to be updated before April.
SSP from day one — no more waiting days
Under the current framework, employees serve three unpaid waiting days before Statutory Sick Pay begins. This has long acted as a natural buffer — both for employers managing short absences and for employees weighing up whether to self-certify. From April, that buffer is gone.
SSP will be payable from the first qualifying day of sickness. That means a one-day absence, a two-day absence, a Monday-and-Tuesday cold — all of them now trigger the SSP entitlement calculation where the employee qualifies. For employers who rely on waiting days as a natural deterrent to short-term absence, this change requires both a financial and a cultural adjustment.
The Lower Earnings Limit is removed
Currently, employees must earn at least £129 per week (the Lower Earnings Limit) to qualify for SSP. From April 2026, that threshold is abolished. All employees qualify for SSP from day one of sickness, regardless of earnings.
The practical effect is significant. The government estimates that approximately 1.3 million additional workers become entitled to SSP under the new framework — predominantly lower-paid and part-time employees who were previously excluded. For employers in sectors with high proportions of part-time or lower-paid staff — retail, hospitality, social care, cleaning and facilities — this represents a material increase in both SSP liability and the administrative workload involved in processing it.
The rate and how it is calculated
The flat weekly rate increases from £118.75 to £123.25 from April 2026. However, for lower-paid workers newly brought into eligibility, SSP will not simply be paid at the flat rate. The new calculation requires SSP to be paid at the lower of:
- £123.25 per week (the flat rate), or
- 80% of the employee's average weekly earnings, calculated over the eight weeks immediately preceding the absence.
For most employees, SSP will remain at or near the flat rate. For lower-paid workers, the 80% calculation will produce a figure below £123.25 — and that lower figure is what must be paid. Payroll systems need to support this calculation correctly. Those that simply apply the flat rate to all SSP-qualifying absences will underpay newly eligible employees and create compliance exposure.
What this means in practice
The combined effect of these three changes is a meaningful increase in both SSP cost and administrative complexity for most employers. Short absences now carry an immediate cost. A wider workforce now qualifies. And the rate calculation requires more information than before.
Beyond the financial impact, there are important process implications. Absence management systems need to trigger SSP from day one. Payroll needs to track the eight-week average earnings window for lower-paid employees. Line managers need to understand the new entitlements so they communicate accurately with their teams. And policies need to reflect the updated framework before April — not after the first absence triggers a claim under the new rules.
What employers should do before April
- Confirm your payroll system supports day-one SSP payments and the 80% average weekly earnings calculation with an eight-week lookback period.
- Remove the Lower Earnings Limit from your payroll eligibility checks — all employees now qualify.
- Update your sickness absence policy to reflect the new entitlements, including the removal of waiting days.
- Review contracts and handbooks — any references to the three-day waiting period need to be updated or removed.
- Brief line managers on the changes so they communicate accurately with employees from April onwards.
- Model the financial impact, particularly if you employ significant numbers of part-time or lower-paid workers who were previously below the LEL.
- Ensure your absence management process triggers SSP calculation correctly from the first qualifying day.
April arrives quickly. Employers who treat these changes as an administrative update to action in advance will be far better placed than those who discover gaps when the first absence under the new rules is processed incorrectly.