Statutory Sick Pay Changes 2026: What Employers Need to Know

For many UK employers, Statutory Sick Pay has long sat in the background as a fairly limited obligation. It did not apply to everyone, it usually did not begin straight away, and businesses with lower-paid or part-time staff often had to check whether an employee even qualified before thinking about what was payable. For that reason, a lot of small businesses have treated SSP as a payroll detail rather than a live compliance issue. That position is now changing. From 6 April 2026, the SSP rules become broader and more immediate, which means more employees may qualify and payment may start sooner than many employers are used to. Sections 10 to 13 of the Employment Rights Act 2025 are being commenced on that date, and HMRC has already published employer guidance for the changeover.

How SSP Worked Before the 2026 Changes

Under the pre-April 2026 rules, SSP was a limited statutory minimum rather than a general right to normal paid sick leave. GOV.UK says the old position was that an eligible worker could get £118.75 per week for up to 28 weeks, but only if they met the statutory conditions. Those conditions included, among other things, having done some work for the employer, being off sick for at least 4 days in a row, telling the employer within the required time, and having average weekly earnings of at least the Lower Earnings Limit, which was £125 per week for 2025–26.

Even where an employee qualified, SSP did not usually begin immediately. The first 3 qualifying days were normally waiting days, so SSP generally started on the 4th qualifying day. In practice, that meant short absences often did not trigger SSP at all, and some lower-paid workers fell outside the system entirely. That is the background many employers are still working from.

What Changes From 6 April 2026

From 6 April 2026, the SSP rules changed in three important ways. First, the old earnings threshold is removed for SSP purposes, so eligible employees will no longer need to earn above the previous Lower Earnings Limit to qualify. Secondly, the waiting-day rule is removed, which means SSP will generally be payable from the first full day of sickness absence rather than only from day 4. Thirdly, the rate changes for 2026–27: SSP becomes the lower of 80% of average weekly earnings and £123.25 per week. The other eligibility criteria stay the same.

So the reform is not just about a slightly different weekly figure. It changes the shape of the entitlement itself. An employer who used to begin with “does this person earn enough for SSP?” now needs to think differently, because that threshold-based gatekeeping disappears. And an employer who was used to the first few days being unpaid can no longer assume that a short sickness absence will sit outside SSP.

Why Small Businesses Should Pay Attention

For small businesses, the real impact is usually practical rather than theoretical. More staff may now fall within the SSP regime, particularly where the workforce includes lower-paid or part-time employees. Payment may also start earlier than before, which can affect absence budgeting and payroll timing even where the overall absence is short. The government’s employer campaign page frames the reforms in exactly those terms: SSP will be available to more employees and payable from the first full day of sickness absence.

This matters because smaller employers often rely on habits, template wording and manager practice rather than a large HR function. That is where legal changes tend to create problems. HMRC’s own guidance tells employers to make sure payroll is ready, review sickness absence policies and share the changes with employees before the new rules take effect. In other words, the legal change itself is straightforward; the real risk is continuing to operate on old assumptions after the law has moved on.

It is also worth being careful about who may qualify. The removal of the earnings threshold does not mean everyone who does work for the business automatically gets SSP. Acas still describes SSP as depending on the full eligibility test, including being classed as employed for tax purposes. Acas also notes that workers paid through PAYE may qualify, and where someone has no regular work pattern the employer and worker may need to agree what counts as their qualifying days.

If You Already Offer Company Sick Pay

These reforms still matter even if your business already offers sick pay above the statutory minimum. GOV.UK says employers can provide a company or occupational sick pay scheme, but if a worker qualifies for SSP, that statutory amount remains the minimum floor. Acas makes the same point from a practical employment perspective: contractual, company or occupational sick pay may be more generous, but it sits alongside the statutory rules rather than replacing the need to understand them.

In practice, company sick pay is not usually paid as a completely separate extra amount on top of SSP for the same period. HMRC’s manual says SSP can be offset against occupational sick pay, and where occupational sick pay is greater, the employer simply pays the occupational rate. That means the businesses most likely to get caught out are often not the ones with no sick pay scheme, but the ones with older contractual wording that still describes how SSP works under the pre-2026 rules.

The Transition Point Employers Should Not Miss

One of the more technical parts of the reform is the handover between the old rules and the new rules. Sickness absence does not always start neatly on the same day the law changes, so HMRC has published separate guidance for absences that begin before 6 April 2026 and continue afterwards. That guidance includes transitional rules for employees who were previously below the old earnings threshold, and protection for some employees already receiving SSP whose weekly earnings fall between £125 and £154.05.

The practical point for employers is simple: if an employee’s sickness absence straddles 6 April 2026, do not assume it is purely an “old law” case or purely a “new law” case. Check the transition guidance before making payment decisions. HMRC expressly says special rules apply to sickness absences that start before and end on or after 6 April 2026.

What Employers Should Review Now

For most small businesses, the sensible response is to work through the places where outdated assumptions tend to live. Payroll is the obvious starting point. If payroll is outsourced, it is worth checking that the provider is ready for the new SSP calculation and the transition rules. After that, it makes sense to review any sickness absence policy, staff handbook wording, template letters and employment contract clauses that refer to SSP or explain how sick pay works. HMRC specifically advises employers to review policies and payroll arrangements before the change takes effect.

It is also worth looking at how sickness is handled in real life, not just on paper. A manager who still thinks SSP only starts after several days, or who assumes lower-paid staff cannot qualify, may apply the wrong rule even if the written policy has been updated. In practice, many payroll or employee-relations issues arise not because the headline rule was misunderstood, but because old habits quietly survived the legal change. That is why this reform is as much about internal process as it is about the statute itself.

Fit Notes, Self-Certification and SSP1 Still Matter

The SSP reforms do not remove the ordinary process around reporting and evidencing sickness absence. GOV.UK says employees must usually provide a fit note if they have been ill for more than 7 days in a row, including non-working days. Acas explains that employees can normally self-certify for the first 7 calendar days. Those rules still matter, even though the entitlement and timing rules for SSP are changing.

The employer paperwork also remains relevant. GOV.UK says employers must complete form SSP1 when an employee is not entitled to SSP, or when their SSP is ending, and the employer guide specifically notes that this can be done before SSP ends if the employer knows the employee will be off for more than 28 weeks. That is a useful reminder that, although the 2026 changes broaden access and bring payment forward, SSP is still a statutory employer-paid scheme with its own administrative framework rather than a general entitlement to normal wages during sickness.

Final Thoughts

The best way to think about the 2026 SSP reforms is not as a minor payroll update, but as a reset of some long-standing assumptions. For years, many employers have treated SSP as limited, delayed and often irrelevant in short absences or for lower-paid staff. From 6 April 2026, that is no longer a safe assumption. The law makes SSP available more widely, starts it earlier, and changes how it is calculated.

For small businesses, the safest course is to review payroll, sick pay wording and absence procedures now rather than waiting for a problem case to arise. Done early, this is a manageable update. Left on autopilot, it is the kind of change that can lead to underpayments, outdated policies and avoidable employee complaints. 

If you would like a consultation on your options moving forward, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.