From 6 April 2026, major reforms to Statutory Sick Pay (SSP) come into effect across the UK. These changes are designed to make sick pay more accessible, particularly for low-income workers, while increasing responsibilities for employers.
Whether you’re a business owner or an employee, here’s a simple breakdown of what’s changing.
Quick Summary
- SSP starts from Day 1
- No minimum earnings requirement
- Paid at 80% of earnings or £123.25/week (whichever is lower)
- Maximum duration remains 28 weeks
- More employees are now eligible
What is Statutory Sick Pay (SSP)?
Statutory Sick Pay is the minimum amount employers must pay eligible employees when they are off work due to illness.
SSP is payable for a maximum of 28 weeks for each period of sickness.
Key SSP Changes from April 2026
1. SSP Starts from Day One
The 3 waiting days rule has been removed.
- Before: SSP paid from the 4th day of sickness
- Now: SSP paid from the first day
Even short absences (1–3 days) are now covered.
2. Removal of the Lower Earnings Limit (LEL)
Previously, employees needed to earn above a minimum threshold to qualify.
- Now: Employees are eligible regardless of how much they earn, provided they meet general eligibility criteria.
This benefits:
- Part-time workers
- Low-income employees
- Flexible and gig workers
3. New SSP Calculation Method
From April 2026, SSP is calculated as:
- 80% of average weekly earnings, OR
- £123.25 per week (statutory cap)
Employees receive whichever is lower.
- Low earners benefit most from the 80% rule
- Higher earners will typically receive the capped amount (£123.25)
4. Increased SSP Rate
- 2025/26: £118.75 per week
- 2026/27: £123.25 per week
A modest increase, but combined with other changes, overall support improves significantly.
5. More Employees Now Eligible
With the removal of the earnings threshold:
- Millions more workers now qualify for SSP
- Employees who previously received no sick pay may now be covered
This creates a more inclusive system.
6. Impact on Short-Term Absences
Because SSP is now paid from day one:
Employers must pay SSP even for very short illnesses
This may increase:
- Sick pay costs
- Frequency of claims
7. Transitional Rules
For employees already off sick before 6 April 2026:
Different SSP rules may apply depending on:
- When the sickness started
- Whether there is a break in absence
Employers should review ongoing cases carefully to ensure correct treatment.
What This Means for Employers
Increased Responsibility
- Pay SSP from the first day of absence
- Cover a wider group of employees
- Update payroll systems for the new calculation method
Higher Costs
- More employees eligible
- More short-term sickness payments
- Increased administrative work
Small and medium-sized businesses may feel the biggest impact.
What This Means for Employees
Better Financial Protection
- Immediate sick pay from day one
- Coverage even for low earners
- Fairer calculation linked to earnings
Employees no longer need to go unpaid during the first few sick days.
Pros and Cons of the New SSP Rules
Advantages
- More inclusive and fair system
- Supports vulnerable and low-income workers
- Encourages employees to stay home when sick
- Helps reduce workplace illness spread
Challenges
- Increased costs for employers
- More payroll and compliance complexity
- Potential rise in short-term absences
Final Thoughts
The April 2026 SSP reforms represent one of the most significant updates to sick pay in the UK in recent years. By removing waiting days and income thresholds, the system becomes more supportive and accessible.
However, businesses must prepare for higher costs and operational changes to remain compliant. At Pro Taxman, we help businesses stay compliant with UK payroll and employment changes. From SSP calculations to full payroll management, our experts ensure your business stays ahead of every update.