Statutory Sick Pay Reforms: What Employers Need to Know Ahead of April 2026

The Government has confirmed that, from April 2026, two significant reforms to Statutory Sick Pay (SSP) are expected to take effect. 

If you're an employer, it's important to understand what these changes mean in practice not only for your employees, but also for your policies, budgets, and compliance obligations. In this article, we’ll walk you through the key changes, what they mean for your business, and how Stallard Kane’s HR team will support you every step of the way.

What are the two key changes?

1. SSP will be payable from Day 1 of sickness absence

Currently, employees are only eligible to receive SSP from the fourth qualifying day of sickness absence; the first three days are unpaid, unless the employee qualifies for enhanced sick pay.

Under the new legislation, the three-day waiting period will be removed, and SSP will become a ‘Day 1’ entitlement. This means it will be paid from the first qualifying day of sickness absence (provided eligibility criteria are met).

2. The Lower Earnings Limit will be removed

At present, an employee must earn at least the Lower Earnings Limit (LEL), currently £123 per week (2025/26 rate), to qualify for SSP.

From April 2026 this minimum earnings threshold will be abolished. This means that all employees, regardless of how much they earn, will be eligible for SSP if they meet the other qualifying conditions (such as being classed as an employee and being off work due to illness for at least four consecutive calendar days).

What do these changes mean for me as an employer?

These reforms represent a shift in both cost and administration for employers. Here’s what to consider:

• Increased sick pay liability: employers will potentially pay more in SSP, as it will begin from Day 1 of absence rather than Day 4
  
• More employees will qualify: with the LEL removed, even those working limited hours or on very low incomes who were previously ineligible will now be entitled to SSP
  
• Greater emphasis on absence management: employers will need to ensure that absence reporting procedures are robust, as accurate records will be crucial for compliance and payroll. Prompt and clear recording of the start date of absence is essential to ensure SSP is paid correctly from Day 1.
  
• Possible impact on Enhanced Sick Pay schemes: if you offer contractual sick pay, the interaction between enhanced policies and the new SSP rules should be reviewed; policies may need to be realigned to ensure they are not inadvertently overpaying or duplicating entitlement

What should I do to prepare?

Although these changes aren’t due until April 2026, early preparation is key. Here are the practical steps employers should begin taking now:

• Equip managers with the knowledge and tools to handle SSP queries, report absences correctly, and understand the updated entitlement criteria
  
• Include absence management in your ongoing compliance training

How will Stallard Kane support me? 

We know that employment law updates can quickly become a burden for busy businesses. That’s why our HR team is already preparing the tools, templates, and support you’ll need to navigate the 2026 SSP reforms with confidence. 

We’ll ensure your absence, sick pay, and employee conduct policies are fully compliant with the new SSP rules and tailored to your business context, so you can focus on running your business.

Take the next step in protecting your business and employees. Please don’t hesitate to contact your designated HR Advisor, we're here to help. For guidance, speak to your HR Advisor: hr@skaltd.co.uk | 01427 402 403

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