From 6 April 2026, Statutory Sick Pay (SSP) is undergoing major reform. These changes expand eligibility, modernise how SSP is calculated, and increase employer responsibilities. Here’s a concise overview of what’s changing and how to prepare.
The three big SSP changes
- Day‑one SSP – SSP will be payable from the first full day of sickness (rather than the old waiting three days).
- No Lower Earnings Limit – All employees now qualify for SSP, regardless of earnings. This includes part‑time, zero‑hours and seasonal workers.
- Earnings‑linked SSP – SSP becomes 80% of average weekly earnings (AWE) and this is capped at the flat rate (currently £123.25 per week).
Why the rules are changing
The reforms aim to:
- Extend protection to lower‑paid and flexible workers
- Encourage earlier reporting of sickness
- Modernise SSP for today’s working patterns
With sickness levels rising in recent years, the government wants a system that supports earlier intervention and financial stability.
What employers need to do
- Update payroll systems – Payroll must now calculate AWE and apply the 80% rule.
- Review contracts and policies – Remove references to waiting days and previous eligibility rules.
- Train managers – They need to understand day‑one entitlement and adopt accurate absence reporting.
- Prepare for increased costs – More employees will qualify and SSP will start earlier.
Transitional Absences
If sickness spans before and after 6 April 2026:
- Old rules apply up to 5 April
- New rules apply from 6 April
Payroll must split the absence accordingly.
FAQ’s
- Does everyone now qualify for SSP? Yes: earnings no longer matter.
- Is SSP more generous? For some workers, yes. Higher earners remain capped.
- Can employers reclaim SSP? No: there is no rebate scheme.
Conclusion
The April 2026 SSP reforms represent a significant shift in UK employment law. Employers should act now to update payroll, revise policies and prepare for increased costs. Early preparation will ensure compliance and smoother implementation.
