The world of employment law never stands still, and the latest big change on the horizon is to Statutory Sick Pay (SSP).
On 1 July 2025, the Department for Business and Trade (DBT) confirmed that significant reforms to SSP will take effect from April 2026. These reforms are designed to enhance support for employees, but they will also bring added costs and responsibilities for employers, many of whom are already managing rising employment expenses such as National Insurance increases and higher minimum wage rates.
So, what’s changing, and what do you need to do to prepare? Let’s take a look.
What’s Changing?
From April 2026, two major reforms to SSP will come into play:
Day one entitlement - Employees will be entitled to SSP from their first day of absence, rather than waiting until day four as under current rules.
Removal of the lower earnings limit - The current threshold of £125 per week will be scrapped. This means employees will no longer need to meet a minimum income level to qualify for SSP.
For employees earning below what is currently the lower earnings limit, the calculation will be slightly different:
They will receive the lower of either 80% of their average weekly earnings or the government-set flat rate.
The aim of these reforms is to make sick pay more inclusive and accessible, especially for part-time and lower-income workers.
Employer responsibilities
Although SSP is set and regulated by the Government, it is the responsibility of employers to ensure correct and timely payments. Employers will still need to:
Maintain accurate records of absences and SSP payments.
Update payroll systems to comply with the new rules.
Ensure payroll deductions for tax and National Insurance are processed correctly, as SSP continues to be treated like normal earnings.
What employers should consider now
While April 2026 may feel a long way off, it’s important to start preparing early.
Here are some key steps to consider:
Budgeting for higher costs
With SSP payable from day one, and more employees qualifying, liabilities will increase. Unlike maternity or paternity pay, SSP is not recoverable from the government, meaning the full cost sits with employers.
Reviewing payroll systems
Ensure your software and processes can handle day-one SSP payments and the removal of the lower earnings threshold.
Updating policies and contracts
Even if you already offer an enhanced sick pay scheme, you’ll need to make sure your contracts and sickness policies reflect the new legal baseline.
Training your teams
HR and payroll staff will need to be confident in applying the new rules correctly.
Moving forward
The SSP reforms mark a positive step for inclusivity, ensuring more employees have access to sick pay when they need it most. However, for employers, they bring new financial and administrative pressures that need careful planning.
At My HR Hub, we work closely with businesses to ensure they remain compliant, prepared, and supported through upcoming employment law changes. If you’d like guidance on updating your policies, payroll systems, or contracts ahead of April 2026, we’re here to help.
