Statutory Sick Pay changes from April 2026

From 6 April 2026, significant changes to Statutory Sick Pay (SSP) will come into force. The reforms modernise the SSP framework and widen eligibility, meaning employers should review payroll processes and policies early to ensure a smooth, compliant transition. This short guide explains what’s changing and what it means in practice.

What’s Changing?

SSP from day one of sickness

Currently, SSP usually starts from the fourth qualifying day of absence. From April 2026, the waiting period will be removed, and SSP will be payable from an employee’s first full day of sickness absence.

Removal of the earnings threshold

At present, employees earning below the Lower Earnings Limit (£125 per week or £542 per month for 2025/26) are not entitled to SSP. From April 2026, this threshold will be abolished, extending SSP eligibility to lower-paid, part-time and zero-hours workers. As a result, more employees are likely to qualify for SSP under the current rules.

A revised method of calculating SSP

SSP is currently paid at a flat weekly rate set by the government. Under the new system, SSP will be paid at the lower of:

• 80% of the employee’s average weekly earnings, or
• the statutory SSP flat rate for that year (£118.75 per week until 5 April for 2025; rising to £123.25 thereafter).

This approach creates a clearer link between pay and entitlement, while maintaining a safety net for lower-paid workers.

What this means in practice

For employees, the reforms provide earlier access to sick pay and broader eligibility, offering greater financial stability during periods of ill health.

For employers, the focus will be on preparation and implementation. In particular, businesses should:

• Update payroll systems to reflect SSP being payable from day one.
• Review contracts, policies and handbooks for references to waiting days or earnings thresholds.
• Ensure payroll and HR teams understand the new eligibility rules and calculation method.

Statutory Sick Pay changes April 2026: Transitional arrangements

Where an employee is already off sick on 6 April 2026, transitional protections apply to prevent SSP being reduced mid-absence, helping ensure continuity during the changeover.

Looking ahead

These reforms form part of the wider Employment Rights Act 2025, aimed at improving workforce support while promoting good employment practices. While the changes will require careful planning, they also offer employers an opportunity to align statutory obligations with broader wellbeing and attendance strategies.

If you would like assistance reviewing your contracts, policies or payroll processes ahead of 6 April 2026, BLB Solicitors can provide clear, practical advice to help you stay compliant and confident. Call Jon Stanley on 01793 615011 or complete the Contact Form.