From 6 April 2026, significant changes to Statutory Sick Pay (SSP) came into effect across the UK. These reforms affect when SSP starts, who qualifies and how much eligible employees receive.

For employers, it’s important to understand the new rules and ensure payroll systems and sickness absence policies are updated to remain compliant.

Key SSP Changes from 6 April 2026

SSP Starts from Day One

Previously, employees generally became entitled to SSP from the fourth qualifying day of sickness, meaning the first three qualifying days were unpaid.

From 6 April 2026, the waiting period has been removed and SSP is generally payable from the first qualifying day of sickness absence.

More Employees Now Qualify

Previously, employees had to earn above the Lower Earnings Limit (LEL) to qualify for SSP.

From 6 April 2026:

• The Lower Earnings Limit has been removed.
• Lower-paid and part-time employees may now qualify.
• Around 1.3 million additional workers are expected to become eligible for SSP.

New Calculation Method

SSP is now calculated as the lower of:

• 80% of the employee’s Average Weekly Earnings (AWE), or
• £123.25 per week, the statutory weekly rate for 2026/27.

Average Weekly Earnings are calculated using HMRC’s statutory rules based on the employee’s relevant earnings period.

Example

An employee earns £300 per week and is absent due to sickness.

• 80% of earnings = £240
• Statutory SSP rate = £123.25

The employer pays £123.25 per week, as SSP is limited to the statutory maximum.

If another employee earns £120 per week:

• 80% of earnings = £96

They would receive £96 per week, as this is lower than the statutory maximum.

What This Means for Employers

These reforms are likely to:

• Increase the number of employees eligible for SSP.
• Require SSP to be paid earlier in a period of sickness.
• Increase payroll costs for some employers.
• Require payroll software and procedures to be updated.
• Prompt employers to review sickness absence policies and communicate the changes to employees.

How Business Management Consultation Can Help

At Business Management Consultation, we help employers stay compliant with changing payroll legislation.

We can assist with:

• Reviewing payroll procedures.
• Calculating Statutory Sick Pay correctly.
• Updating payroll systems.
• Ensuring compliance with HMRC requirements.
• Providing ongoing payroll support and advice.

Conclusion

The changes to Statutory Sick Pay from 6 April 2026 represent one of the most significant reforms to SSP in recent years. With day-one entitlement, expanded eligibility and a new calculation method, employers should ensure their payroll processes are fully updated.

Planning ahead can help your business remain compliant while providing employees with the correct statutory entitlement.

Call us today on 01273 777 333 to discuss how the new SSP rules affect your business and payroll processes.