From 6 April 2026, the rules around Statutory Sick Pay changed significantly for all UK employers, and for small and medium-sized businesses in particular, this is more than just an admin update.
Here is what is new and what you need to do about it...
📋 What's Changed?
SSP is now payable from day one of sickness absence. The previous three unpaid "waiting days" have been removed. All employees will qualify for SSP regardless of how much they earn, as the lower earnings limit has been scrapped.
The weekly rate of SSP has also risen from £118.75 to £123.25 from 6 April 2026.
So in plain terms: if an employee calls in sick for even a single day, SSP is now triggered.
💰 What does this cost your business?
The government estimates the SSP reforms will increase employer costs by around £450 million per year nationally. That equates to roughly £15 more per employee on average, so for most businesses the individual impact is manageable.
The bigger challenge is operational. Think about part-time staff, lower-paid workers, or casual employees who previously fell below the earnings threshold. From April 2026, every employee, regardless of hours or earnings, is entitled to SSP from their first day of employment.
⚠️ Where most businesses are caught out
April 2026 also sees the establishment of the Fair Work Agency, a new enforcement body with powers to enforce SSP payments, meaning non-compliance carries greater risk than before.
Your sick pay policies almost certainly need updating. Any policy that references the lower earnings limit or the waiting period is already legally incorrect. Payroll systems need updating too.
✅ What to do now
- Review your sick pay policy and employee handbook
- Check that contracts of employment do not reference the old rules
- Update your payroll software to reflect day one entitlement and the new rate
- Train managers on the changes, especially around short-term absences and phased returns
- Consider whether your current absence management procedures are strong enough without the deterrent of the three waiting days
If you're unsure how these changes affect your payroll or contracts, your Client Manager would be happy to talk it through with you.