SSP Reform: What Employers Need to Know Ahead of April 2026

The Government has unveiled its roadmap to reform Statutory Sick Pay (SSP) as part of a wider mission to tackle poor pay, poor working conditions, and job insecurity across the UK. These long-awaited changes form part of The Plan to Make Work Pay and are intended to strengthen the safety net for millions of workers—particularly those on lower incomes.

A key area of focus is the reform of Statutory Sick Pay. From 6th April 2026, significant changes will be implemented, aiming to increase access to sick pay and support healthier, more secure workplaces.

Here’s what employers need to know.

What’s Changing?

From the start of the 2026/27 tax year, the following SSP measures will come into effect:

1. Removal of the Lower Earnings Limit (LEL)

Currently, employees must earn above the LEL (£123 per week in 2024/25) to qualify for SSP. This eligibility requirement will be removed, making all employees, regardless of earnings, entitled to SSP when off work due to illness.

2. Sick Pay from Day One

The traditional three “waiting days” will be abolished. Employees will receive SSP from the first working day of sickness absence.

3. New Calculation Method

Employees will receive 80% of their normal weekly earnings, or the flat rate (whichever is lower). This ensures that SSP remains affordable for employers, while providing more meaningful income protection for lower earners.

What Does This Mean for Employers?

✔️ Time to Prepare

With a clear implementation date—6th April 2026—businesses now have a window to:

• Review and update internal sickness and absence policies

• Update employment contracts if they reference SSP eligibility or waiting days

• Ensure payroll and HR systems are ready for the new rules

✔️ Business Impact

The government estimates the cost of these reforms to be around £15 per employee, or £500 million across the UK.

However, the potential benefits for employers include:

• Reduced presenteeism and increased productivity: Employees can take time off when unwell, limiting the spread of illness at work.

• Stronger employee-employer relationships: Continuing to deliver SSP through employers reinforces support and connection during periods of absence.

• A fairer, more inclusive system that reflects modern working patterns and supports vulnerable groups.

Final Thoughts

These SSP reforms mark a significant shift in how sick pay is delivered across the UK. By expanding eligibility and providing earlier financial support during illness, the Government hopes to build a fairer, healthier labour market.

For employers, this is not just a compliance exercise. It’s an opportunity to demonstrate care, boost employee morale, and strengthen workforce resilience.

Start preparing now—2026 will be here before you know it.

You can access a detailed breakdown of the Employment Rights Bill roadmap here: https://assets.publishing.service.gov.uk/media/686507a33b77477f9da0726e/implementing-the-employment-rights-bill-roadmap.pdf