Changes to Statutory Sick Pay (SSP)
From 6th April 2025, the way in which statutory sick pay (SSP) is being paid is changing From 6 April 2026, the UK’s statutory sick pay system is being overhauled as part of the government’s “Make Work Pay” reforms. The previous scheme meant that only works earning above £123 per week were eligible. Now, all workers qualify with no earning limits. Instead of the initial 3 unpaid waiting days, SSP is now paid from day 1 of sickness which means less financial risk in deciding to stay off work unwell.The way payment is being calculated is changing too – the government are removing the earnings threshold (the Lower Earnings Limit – LEL) so that all employees, regardless of how little they earn can be paid.
Previously, many workers earning below the LEL (for example some part time or zero hours contract workers) had no entitlement. The new scheme will mean that employees will be paid 80% of normal weekly earnings, or the flat rate (whichever is lower) providing a more meaningful safety net when sick.
In short: more people will qualify, and payments will start sooner.
The government says these updates will:
• Make sick pay fairer and more inclusive (especially for low-paid and part-time workers)
• Help people recover properly instead of working while ill
• Support a healthier, more productive workforce
Before April 2026, employers should:
1. Update payroll systems for day-one payments and new eligibility rules
2. Review contracts and sick pay policies to ensure compliance
3. Communicate the changes to managers and staff early
4. Budget for potential cost increases, especially if you have many low-paid or short-term staff
These are the biggest SSP changes in decades — aimed at making sick pay fairer, simpler, and more supportive for everyone.
To discuss this this in more detail, give our experienced team a call on 01722 448 448.