From 6 April 2026 there have been fundamental changes to Statutory Sick Pay that UK employers need to be aware of, both in terms of eligibility and cost.

Core legal changes:

SSP is now payable from day one of sickness, not from day four. The three unpaid ‘waiting days’ have been removed, so even an absence of one day will trigger SSP for eligible employees.

The Lower Earnings Limit has been removed. Any employee who otherwise meets the SSP conditions can qualify, regardless of how little they earn or how few hours they work. This brings many part‑time and low‑paid workers into scope.

The SSP rate has changed. From 6 April 2026 you must pay the lower of 80% of the employee’s average weekly earnings (AWE), or the statutory flat rate (£123.25 per week). So, for low earners, SSP often becomes a percentage of actual pay rather than a full flat rate, which helps avoid paying more in SSP than the employee would normally earn.

Transitional and technical points

The new rules apply to sickness on or after 6 April 2026, with transitional protection for some people already on SSP at that date, so they do not lose out if the 80% formula would reduce their entitlement.

All qualifying days now count towards the 28‑week maximum entitlement for SSP. Linked periods of sickness still exist and can now link via single days.

Existing exclusions remain (for example: already exhausted 28 weeks maximum entitlement, receiving Statutory Maternity Pay, in custody, on strike on first day of sickness, certain pregnancy‑related rules close to due date).

Practical actions for employers

Update SSP and sickness policies, employee handbooks and contracts so they reflect “day‑one” SSP, the removal of the earnings threshold, and the new calculation method.

Reconfigure payroll and HR systems to:

– remove waiting days

– remove LEL checks for SSP

– calculate 80% of AWE and then cap at £123.25 per week, converting to a daily rate for qualifying days.

Review absence management and cost forecasts, as more short absences will now be paid and more staff will qualify, increasing SSP spend, especially in low‑paid and part‑time workforces.

Train line managers so they understand who now qualifies, when SSP starts, and how it interacts with any enhanced company sick pay scheme.

Analyse absence data to identify key trends and consider proactive measures to support employee wellbeing and address underlying causes of absence.

For a free 15-minute exploratory call to discuss the implications of these legal changes, or how we can support your business with HR and employment law matters, please contact us at hr@wardwilliamshr.co.uk

Solve all your employment law questions in just one call.

• Get a free consultation today on the following:
• Employment contracts
• Disciplinaries
• Holiday pay
• Maternity leave
• Recruitment
• Redundancy and dismissal
• Sick leave
• Tribunals
• Payroll

If you would like more information on our HR and Employment Law advice and HR packages to support your business, please get in touch with the office at hr@wardwilliamshr.co.uk or call 01932 830664 or submit our contact form and we will get in touch.