Under the Employment Rights Bill moving through Parliament, there will be some significant changes to Statutory Sick Pay (SSP), which are due to take effect by next spring.
Not only will workers be entitled to claim SSP from day one of their sickness, without a waiting period, but the government will also be removing the lower earnings threshold.
While other statutory payments are recoverable from HMRC, SSP is not, so the employer must bear the full cost. This means employers should revise their sick pay policies ASAP.
Here’s what employers should know to start preparing for SSP changes in April 2026.
Day one SSP entitlement
As of April 2025, the weekly SSP rate has increased from £116.75 to £118.75, but under current rules, workers must still wait at least three days to claim on their fourth day of absence.
Removing this waiting period means employees will be entitled to SSP from the first day of sickness, instead of only qualifying if their sickness lasts more than three days.
This day one right will ease financial pressure for employees, who will no longer have to choose between going to work while they’re ill and not getting paid. However, it will increase the cost for employers – who may also face lost productivity through increased absences.
To reduce sick leave abuse, employers should ask their employees to check in with them each day that they’re off sick, and hold a return-to-work interview every time.
No lower earning threshold
There is currently an earnings threshold to qualify for SSP, which means that an employee can only claim this statutory payment if they earn a minimum of £125 a week.
When the lower earnings limit is scrapped, workers who are off sick will be able to claim SSP even if they earn less than £125 a week. This makes sick pay more accessible for those with irregular working hours, part-time contracts, or low wages.
Employees will receive either the standard rate of SSP or 80% of their average weekly income – whichever is the lowest. This change means those who earn between £125–£148 a week will receive less per day, but they’ll still benefit from more qualifying days.
What should employers do about SSP?
While higher costs may be a concern, this is a beneficial opportunity for employers to upgrade their systems and policies for clearer and more consistent business planning.
If you’re a UK employer, to make sure you’re ready for the upcoming changes, you should:
- Revise budgets for increased sick pay costs (especially for lower-paid workers)
- Update payroll systems and HR policies to reflect the changes to SSP
- Implement fair absence management procedures to avoid discrimination
- Train managers to handle sickness absences with an inclusive approach
To help you plan for these adjustments, you should read through the official factsheet on the lower earnings limit removal, which is published on the government website.
Additionally, employers may find it helpful to outsource payroll services to ensure statutory payments are managed effectively. If you’re interested in this type of financial service, gbac has a team of accountants in Barnsley who would love to hear from you.
Call us on 01226 298 298 or email us at info@gbac.co.uk for more information!