New Statutory Sick Pay (SSP) Changes Explained: What Employers Need to Know

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23 minutes ago
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The UK government has confirmed major updates to Statutory Sick Pay (SSP) as part of the upcoming Employment Rights Bill, due to take effect from 6 April 2026. These reforms aim to make SSP fairer and more accessible to employees — but they’ll also have financial and administrative impacts for employers.

At Practical Business Solutions, we’re helping clients prepare early to stay compliant and in control of the new SSP changes.

The Current SSP System (2024/25)

Under current rules:

SSP is payable when an employee is off work for four or more consecutive days (first three days are “waiting days”).
The weekly rate of SSP is £118.75 (as of April 2025).
Employees must earn at least £123 per week to qualify.

The Key SSP Changes Coming in April 2026

Change	What it means	Impact
Day-One	The first three "waiting days" will be removed. SSP will be payable from the first day of sickness.	Employers will need to cover more short-term absences.
Removal of earnings threshold	All employees, regardless of pay level, will qualify for SSP.	More workers eligible - higher overall cost exposure.
Earnings-linked rate	SSP may move from a flat rate to 80% of normal pay (or the statutory rate, whichever is lower).	Improves fairness for staff, increases complexity for payroll.
Enhanced enforcement	Oversight expected to fall under a new Fair Work Agency	Stronger compliance checks and potential penalties.

Why These SSP Changes Matter

These reforms are designed to:

Provide financial protection from day one of sickness.
Improve support for part-time and low-income workers.
Simplify and modernise the SSP framework.
For employers, the challenge will be balancing compassion with cost and ensuring systems are ready for the change

How Employers Should Prepare Now

Review contracts and staff handbooks

Update absence and sick pay policies to align with new legislation.

Forecast your costs

Estimate potential increases in SSP payments and plan your budgets accordingly.

Update payroll and HR systems

Ensure your software can process day-one sick pay and earnings-based calculations.

Train your management team

Equip managers to handle absence fairly, understand entitlements, and support employees confidently.

Communicate early

Let staff know how the changes will affect them. Transparency prevents confusion and builds trust.

Timeline & Next Steps

Now – 2025: Review internal systems and plan for payroll updates.

Early 2026: Test new SSP settings and communicate changes to staff.

6 April 2026: New SSP rules come into force.

Need Help Getting Ready?

The new SSP reforms may feel complex, but early preparation can make all the difference.

At Practical Business Solutions, our team can help you:

Review payroll and compliance systems
Update employee contracts
Forecast SSP costs and cashflow impact

📞 Get in touch to discuss how we can help your business prepare for the new SSP rules.

Disclaimer:

Information is based on the latest government announcements (November 2025) and may change before legislation is finalised. Always seek professional advice for your specific circumstances.