The Government has announced two major changes to Statutory Sick Pay (SSP), effective from 6 April 2026.
Currently, SSP is only paid from the fourth day of illness, with the first three days unpaid unless an employee receives enhanced sick pay. From April, this three-day waiting period will be removed, making SSP payable from the first day of illness, provided other eligibility conditions are met.
In addition, the current minimum earnings requirement of £123 per week (2025/26 rate) will be abolished. This change means that all workers who meet other eligibility conditions – such as being away from work for at least four days due to illness – will be eligible for SSP, regardless of their earnings.
A spokesperson for Stallard Kane, an HR and compliance specialist, commented: “It is important for all employers to understand that these changes, which will come into effect next month, have implications not only for their staff, but also for their policies, budgets and compliance obligations.”
What do these changes mean for employers?
+ Increase in sick pay liability: Employers will potentially pay more into SSP, as it will start on the first day of absence rather than the fourth.
+ More employees will qualify: With the LEL removed, even people working limited hours or on very low incomes, who were previously ineligible, will now be entitled to SSP.
+ More emphasis on absence management: Employers need to ensure absence reporting processes are robust, as accurate records will be critical for compliance and payroll. To ensure that SSP is paid correctly from day one, quick and clear recording of the start date of absence is essential.
+ Potential impact on increased sick pay schemes: If employers are offering contractual sick pay, the interaction between the enhanced policies and the new SSP rules should be reviewed; Policies may need to be rearranged to ensure they are not inadvertently overpaying or duplicating eligibility.
A spokesperson for Stallard Kane continued: “Employers should ensure that their absence, sick pay and employee conduct policies fully comply with the new SSP rules and are tailored to the relevant business context. Employment law updates can quickly become a burden for businesses, but expert support is available if needed.”