The Government has confirmed that it is making two significant reforms to Statutory Sick Pay (SSP) that are expected to come into force from 6th April 2026. Stallard Kane, experts in HR and compliance, have been looking at the proposed changes in detail.
A spokesperson from Stallard Kane said: “It is important for all employers to understand what these changes, which come into effect next month, mean in practice not only for their employees, but also for their policies, budgets, and compliance obligations.”
What are the two key changes?
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 that it must be paid from the first qualifying day of sickness absence, providing the eligibility criteria are met.
Under the existing rules, 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 and all employees, regardless of how much they earn, will be eligible for SSP, if they meet the other qualifying conditions. These conditions include 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 employers?
- 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 employers are offering 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.
With these changes coming into effect in April 2026, the practical steps employers should begin taking now include equipping managers with the knowledge and tools to handle SSP queries, to report absences correctly, to understand the updated entitlement criteria and adding absence management in ongoing compliance training.
Stallard Kane’s spokesperson continued: “Employers should ensure their absence, sick pay, and employee conduct policies are fully compliant with the new SSP rules and tailored to the relevant business context. Employment law updates can quickly become a burden for businesses, but specialist help is available, if needed.”
