Statutory Sick Pay (SSP) is one of the most important employment rights in the UK, providing a basic level of income for employees when they are too unwell to work. From April 2026, significant SSP changes are due to come into force under the Employment Rights Act 2025, affecting millions of workers and all employers.
As set out by the government, these reforms aim to make statutory sick pay fairer, more inclusive, and better aligned with modern working patterns. In this guide, we explain what’s changing, who it affects, and what employers should be doing now to prepare.
A Quick Reminder: What is Statutory Sick Pay?
Statutory sick pay is the legal minimum sick pay that eligible employees are entitled to receive when they are off work due to illness. SSP is paid by employers and currently applies when an employee is absent for four or more consecutive days due to sickness.
However, many of these long standing rules for SSP are set to change from April 2026.
Why is SSP being reformed?
Government data and independent research have consistently shown gaps in SSP coverage. According to the Office for National Statistics (ONS), over 2 million workers have historically earned too little to qualify for SSP, often including part time workers, those on zero hours contracts, and those who work in lower paid roles.
The government has said the reforms are intended to ensure that sick pay supports people to recover, rather than forcing them to work while unwell.
Key SSP changes coming in April 2026
- Removal of waiting days
One of the biggest SSP changes is the removal of the current three waiting days. At present, SSP is only payable from the fourth qualifying day of sickness. From April 2026, SSP will be payable from day one of absence. This means that employees will no longer have to wait several days before receiving sick pay, reducing financial pressure at the point they are unwell.
- Removal of the lower earnings limit
Currently, employees must earn at least the stipulated Lower Earnings Limit (LEL) to qualify for SSP. This means that many lower paid and part time workers are excluded from receiving SSP. Under the Employment Rights Act 2025, this earnings threshold will be removed leading to more workers becoming eligible for statutory sick pay for the first time.
The CIPD has advocated for this change for a number of year, stating:
“Extending SSP coverage is a critical step in tackling health-related absence and in-work poverty.”
- Changes to how SSP is calculated
Rather than a flat weekly rate only, SSP will move to a percentage-based model for some workers, ensuring that lower earners are not disproportionately disadvantaged.
SSP will be paid at either 80% of average weekly earnings, or the statutory rate, whichever is lower and the statutory rate is rising to £123.25 per week as well.
What Employers Need to do to Prepare
The SSP changes in April 2026 will require practical and policy level updates for employers of all sizes.
- Update sickness absence policies
Sickness and absence policies should be reviewed to reflect:
- SSP being payable from day one
- Expanded eligibility criteria
- Any interaction with contractual sick pay schemes which employers may provide in addition to SSP
Policies should clearly explain the difference between statutory sick pay and any enhanced company sick pay which is being offered.
- Review contracts and handbooks
Employment contracts and staff handbooks may reference SSP rules which are due to become outdated in April 2026, such as waiting days or earnings thresholds. These should be updated to ensure:
- Legal compliance
- Consistency across documentation
- Clear communication to staff
Employers should avoid contractual wording that could unintentionally override statutory entitlements.
- Prepare payroll systems
Payroll software and processes will need updating as well to:
- Pay SSP from day one
- Include newly eligible workers
- Apply revised SSP calculation methods
Early engagement with payroll providers will reduce the risk of errors when the changes go live.
- Communicate changes clearly to staff
Employers should proactively communicate the SSP changes to employees before April 2026 so that the changes are understood and employees have the chance to ask any questions as needed. This could include:
- All staff emails or briefing sessions
- Notice board bulletins
- Updated policy documents
- A set of published FAQs explaining what SSP is and how it works
Clear communication helps manage expectations, reduce queries (and therefore workload) in the longer term and builds trust from employees that their employer is on top of employment law changes and is doing the right thing.
Legal context: the Employment Rights Act 2025
The Employment Rights Act 2025 underpins these SSP reforms, forming part of a wider package of employment law changes aimed at improving worker protection and health outcomes.
Failure to apply SSP correctly could expose employers to:
- Unlawful deduction of wages claims
- Reputational risk
- Employee relations issues
Employers should ensure they keep abreast of updated statutory guidance as it is published.
The SSP changes in April 2026 represent one of the most significant reforms to statutory sick pay in decades. By extending eligibility, removing waiting days, and modernising calculations, the system is designed to better support workers while encouraging responsible absence management.
For employers, preparation is key. Reviewing policies, updating contracts, adjusting payroll systems, and communicating clearly with staff will help ensure a smooth transition and ongoing compliance.
As further guidance is published, keeping SSP arrangements under review will remain essential for UK workplaces of all sizes and sectors.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
If you answered yes to any of the above, just give us a call at CUBE HR on 01282 678321, or book in a FREE 30 Minute HR Health Check here FREE HR Health Check and we’ll happily give your business a full HR overview with our personal recommendations absolutely FREE!
Why not also check out last weeks blog Why Recording Absence Information is Important for Employers.
We also have a YouTube channel with loads of handy videos outlining various HR related scenarios.
