From 6 April 2026, Statutory Sick Pay (SSP) is changing. For many employers, this will be one of the most significant and costly reforms under the Employment Rights Act.
What’s changing on 06 April?
SSP is being fundamentally reshaped and will apply to every employee and every employer:
- No waiting days – SSP will be payable from the first day of sickness absence (currently unpaid for the first three days)
- No lower earnings limit – those earning below the current threshold (previously £125 per week) will now qualify
- New payment structure – £123.25 per week (standard rate) OR 80% of average weekly earnings if earnings are below £129 per week
What’s the practical impact?
1. A likely spike in short-term absence – removing waiting days makes it easier (and potentially more attractive) for employees to take short-term sick leave, so expect absence levels to rise and plan resource cover accordingly.
2. Increased cost exposure – SSP will be payable to more people, more quickly, creating a direct and unavoidable increase in employer costs as a result.
3. Easier phased returns – employees won’t lose pay on non-working days, making gradual returns to work simpler to manage and more attractive in practice (an unintended ‘good news’ story amidst the changes, perhaps?)
Need to sense-check your preparations?
SSP has been firmly on the agenda for a while. You’re likely already well-prepared, but now’s the point to sense-check nothing’s been missed.
1. Strengthen absence management – if absence is going to increase, control what you can. Consistent return-to-work meetings, clear triggers, and early intervention will help keep absence in check.
2. Get your absence data right – accurate, consistent data is essential. Without it, you can’t spot trends, manage risk, or take targeted action. See how our Group’s transformational case management and data technology helped a major high-street name reduce their absence levels by 10% in just 12 months.
3. Equip and hold managers accountable – your managers are key. Make sure they’re confident managing absence, their training is up to date, they’re supported with great policies, and consider incentivising them by linking absence levels to KPIs or performance measures. We can support with training – get in touch.
4. Update contracts, policies and templates – remove outdated references to waiting days and eligibility thresholds, and make sure your documentation reflects the new SSP rules. Our Intelligent Employment platform is primed and ready.
5. Plan for operational impact – think ahead about resourcing. Increased short-term absence will put pressure on teams, so build contingency plans now.
How can we help?
If you need a final sense-check or support getting anything over the line, we’re here to help. We can:
- Review and update your contracts and policies
- Audit and strengthen your absence management approach
- Train managers to handle absence confidently and consistently
- Implement practical tools to track and manage absence data effectively
Give us a shout if you want a second pair of eyes on your approach.
This update is accurate on the date it was published but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
