Statutory Sick Pay Changes April 2026

From 6th April 2026, important changes to Statutory Sick Pay (SSP) will take effect under the Employment Rights Act 2025. These reforms apply across England, Scotland, Wales and Northern Ireland and will significantly widen access to SSP while increasing employer responsibility.

In this updated guide, we explain the new Statutory Sick Pay rules, how payments will be calculated, and what employers should be doing now to prepare.

There are two major reforms coming into force:

• The removal of the Lower Earnings Limit (LEL)
• The abolition of the three-day waiting period

Together, these changes will make SSP available to more employees and payable sooner than under the current system.

Under the existing SSP rules, employees must earn at least the Lower Earnings Limit to qualify for Statutory Sick Pay. This has meant that some lower-paid or part-time workers have not been eligible.

From 6th April 2026, this restriction is removed.

All eligible employees will qualify for SSP regardless of how much they earn. This is a significant expansion of entitlement and is likely to affect businesses employing:

• Part-time staff
• Casual or zero-hours workers
• Lower-paid employees
• Workers with fluctuating earnings

For many employers, this means a larger proportion of the workforce will now qualify for Statutory Sick Pay.

From April 2026, SSP will be paid at the lower of:

• 80% of normal weekly earnings, or
• The uprated weekly flat rate of £123.25

This introduces a proportional calculation for lower earners, while maintaining a cap for higher earners.

For example, if 80% of an employee’s weekly earnings is £100, they will receive £100. If 80% is £140, they will receive the capped amount of £123.25.

Payroll systems will need to calculate 80% of normal weekly earnings accurately, which may require updates or configuration checks ahead of April.

Currently, Statutory Sick Pay is payable from the fourth qualifying day of sickness absence. The first three days, known as waiting days, are unpaid unless the employer offers enhanced contractual sick pay.

From 6th April 2026, this waiting period is removed.

SSP will be payable from the first full day of sickness absence. This means even short-term absences may now result in payment.

For employers, this change could increase overall SSP costs, particularly in businesses where short-term sickness absence is more common. It also means payroll teams must ensure accurate recording of absence start dates.

The new Statutory Sick Pay rules apply across the UK, including Northern Ireland. All employers operating PAYE will need to follow the updated legislation from 6th April 2026.

There are no sector-specific exemptions, although the financial impact will vary depending on workforce structure and pay levels.

One key detail to be aware of is that eligibility depends on when the sickness absence begins.

If an employee’s absence starts before 6th April 2026, the current SSP rules apply. If the absence begins on or after 6th April 2026, the new rules apply.

This could create some complexity for absences that begin around the implementation date. Clear record-keeping and careful payroll processing during early April 2026 will be essential to ensure compliance.

The removal of the Lower Earnings Limit and the move to day-one payments mean that many employers will see an increase in SSP payments overall.

Businesses with a high proportion of part-time, lower-paid or variable-hours staff may feel the greatest impact. Short-term sickness absences that previously did not trigger SSP will now result in payment.

Forward planning is important. Reviewing absence trends from previous years can help estimate the potential financial effect of the new rules.

HMRC has issued technical guidance to payroll software developers to prepare for the April 2026 changes. However, employers should not assume that systems will automatically handle the new calculations without review.

Now is the time to speak with your payroll provider or internal payroll team to confirm:

• The 80% earnings calculation will be implemented correctly
• The removal of waiting days is reflected in system logic
• Reporting and compliance processes remain accurate

Employers should also review employment contracts, staff handbooks and sickness absence policies to ensure they align with the updated statutory framework. Where enhanced sick pay schemes are in place, interaction with the new SSP rules should be checked carefully.

Although April 2026 may seem some distance away, preparation should already be underway.

Employers should be reviewing payroll readiness, assessing potential cost increases and planning internal communication. Managers and HR teams need to understand the changes so they can respond confidently to employee queries.

Clear communication will help avoid confusion, particularly as media coverage of the Statutory Sick Pay changes increases closer to implementation.

The changes introduced by the Employment Rights Act 2025 represent one of the most significant updates to Statutory Sick Pay in recent years.

The key themes for employers are clear:

Broader eligibility.
Payment from day one.
Greater payroll responsibility.
Potentially higher costs.

By reviewing systems, policies and financial forecasts now, businesses can ensure a smooth transition when the new Statutory Sick Pay rules take effect on 6th April 2026.

If you would like support reviewing your payroll processes or understanding how the Statutory Sick Pay changes April 2026 will affect your business, our team is here to help.

Get in touch here…

info@future-cloud.co.uk

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