Statutory Sick Pay Is Changing in 2026

Statutory Sick Pay (SSP) is about to see its biggest shake‑up in years, and it’s something every employer should have on their radar.

The Government has confirmed a series of reforms designed to help people stay in work for longer, ease financial pressure during illness, and support productivity across the economy. The changes will come into force in April 2026 and will have a very real impact on payroll costs, absence management and how organisations support employees when they are unwell.

What are the main changes?

Here’s what’s changing, and what it means for your business:

SSP will be paid from day one

At present, SSP only becomes payable from the fourth qualifying day of sickness absence. The first three days, known as waiting days, are unpaid unless an employer offers enhanced sick pay.

From April 2026, SSP will be payable from the first day of sickness absence.

For employees, this removes the immediate loss of income when they are ill and may reduce the temptation to come into work while unwell. For employers, it means:

• Short-term absences will now attract SSP costs
• Sickness absence will need to be recorded accurately from day one
• Existing sick pay schemes may need reviewing to ensure they still work as intended

The Lower Earnings Limit is being removed

Currently, employees must earn above the Lower Earnings Limit (LEL) to qualify for SSP. This excludes many part‑time workers, casual staff, and lower‑paid employees.

From April 2026, the LEL will be removed entirely. All employees will be entitled to SSP, regardless of earnings.

This is a significant expansion of eligibility. Employers with part‑time or lower‑paid workforces should expect many more employees to qualify for SSP than they do under the current rules.

A New SSP Calculation for Lower Earners

To balance the widening of eligibility, the Government is introducing a new way of calculating SSP for lower‑paid employees.

Under the new rules, SSP will be paid at:

80% of an employee’s average weekly earnings, or the standard SSP rate (for that tax year) – whichever is lower.

This ensures fair support for lower earners while maintaining a cap on costs. However, it does mean payroll systems will need to handle variable SSP calculations, rather than relying on a single flat weekly rate.

Why are these changes being introduced?

The aim of the reforms is to reduce financial stress when people are ill, support proper recovery, and help employees remain in work for longer rather than dropping out of employment altogether.

The Government estimates that more than one million lower-paid workers will benefit from improved access to sick pay as a result of these changes.

What does this mean for me as an employer?

While these reforms are positive for employees, they do come with practical and financial implications for employers.

You should expect to:

• Review sickness and absence policies
• Update payroll systems and processes
• Budget for increased SSP costs
• Ensure managers understand the new rules
• Communicate clearly with employees about their entitlements

How will Stallard Kane support me?  

Handled well, these changes can support employee wellbeing, retention and engagement. Handled poorly, they risk confusion, inconsistency and costly payroll errors.

If you would like practical guidance on preparing for these changes, the team at Stallard Kane is here to help. Our HR specialists can support you in reviewing your current processes and making sure your business is ready.

If you would like to talk through how these SSP changes could affect your organisation, contact Stallard Kane for tailored advice.