Are you ready for the changes to SSP?

One of the most talked-about changes in the Employment Rights Bill is Statutory Sick Pay (SSP). From 6 April 2026 these changes could reshape how sick pay is delivered and who qualifies with big implications for workers and employers.

What you need to know:

1) Day-One Entitlement - The current 3-day waiting period is being removed. SSP will be payable from the first full day of sickness absence rather than the fourth.

2) Removal of Lower Earnings Limit (LEL) - The requirement to earn at least a minimum threshold (currently £125 per week) to qualify for SSP will be removed. Even very low-paid and part-time workers will qualify for sick pay.

3) New Calculation Method - SSP will be calculated as the lower of:

○ 80% of the employee's average weekly earnings

OR

○ The standard statutory flat weekly rate of £123.25 (from 6 April 2026)

4) Transitional Protections - Employees already receiving SSP before 6 April 2026 will continue to receive the new flat rate until they return to work or their entitlement ends (up to 28 weeks), ensuring their pay does not drop mid-absence.

Preparation for Employers

Start planning now to manage the increased costs and impact on administration:

● Update Policies:

Review sickness absence policies and staff handbooks to remove references to waiting days and earnings thresholds.

● Payroll Systems:

Make sure your software can handle the new percentage-based calculation and day-one payments.

● Budgeting:

Forecast increased costs, as more employees will be eligible and all short-term absences will now be paid.

● Manager Training:

Upskill managers on new requirements and effective absence management to prevent potential misuse.

Transitional Rules (For those already off sick on 6 April 2026)

Special rules apply if your sickness period spans the 6 April 2026 start date to prevent a mid-absence pay cut.

● If you were already receiving the full flat rate of SSP before 6 April, you will continue to receive the new uprated flat rate (£123.25) until you return to work or your 28-week entitlement ends. This applies even if 80% of your earnings would normally be lower.

● If you are in the middle of your three "waiting days" on 6 April, you stop serving them immediately. You become eligible for SSP from 6 April onwards.

● If you were off sick before 6 April but didn't qualify because you earned below the LEL, you become eligible for SSP starting from 6 April.

● If you return to work but fall ill again within 56 days, your second absence "links" to the first. Your SSP rate will typically stay the same as your first period of illness.

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Don’t leave this until the end of March 2026 to act!

The biggest risks for employers are payroll errors, inconsistent manager decisions, and out-of-date policies. Starting early gives you time to test systems, train managers, and communicate clearly with staff.

If you need support reviewing or updating your policies, employee handbooks, or manager guidance,  Get in touch.