Changes to Statutory Sick Pay

The UK Government has announced significant reforms to Statutory Sick Pay (SSP), with changes expected to take effect from April 2026. These updates are designed to widen access to sick pay and simplify eligibility for employees — but they will also require employers to review their payroll processes, absence policies, and potential costs.

For business owners, understanding these changes early will help ensure compliance and allow time to prepare operationally and financially.

 

Why Statutory Sick Pay Is Changing

Statutory Sick Pay has traditionally been subject to strict eligibility rules, including minimum earnings thresholds and waiting days before payments begin. The upcoming reforms aim to make sick pay more accessible to workers and create greater consistency in how SSP is administered across employers.

While the objective is to support employees, the changes will have practical and financial implications for businesses that need to be planned for now.

 

Key Changes Expected from April 2026

• Removal of Waiting Days

Currently, SSP is payable from the fourth day of sickness absence. Under the new rules, Statutory Sick Pay will be payable from the first day of absence. This means employers will be required to pay SSP sooner, increasing the frequency and potential cost of sick pay claims.

• Expansion of SSP Eligibility

Employees earning below the current Lower Earnings Limit are expected to become eligible for SSP. As a result, more workers — particularly those in lower-paid or part-time roles — will qualify for statutory sick pay. This expansion will widen employer responsibilities and increase the number of eligible employees.

• Greater consistency in sick pay administration

Employers will need to ensure payroll systems, internal processes and HR policies accurately reflect the updated SSP rules. This includes correct calculation, reporting, and application of SSP from April 2026.

 

What This Means for Employers

• Potential increase in SSP costs due to earlier payments and broader employee eligibility.
• Payroll software and processes will need updating to ensure SSP is calculated correctly from April 2026.
• Employment contracts, sickness absence policies, and employee communications may need reviewing and updating to reflect the new requirements.

Early preparation will help reduce disruption and ensure your business remains compliant when the changes come into force.

What You Should Do Now

To prepare for the upcoming changes, we recommend that businesses:

• Review current sickness absence and sick pay policies.
• Consider the potential cost and operational impact of the reforms.
• Ensure managers and HR teams are aware of the forthcoming changes. For support with HR documentation, we offer HR consultancy services and HR outsourcing packages.

 

Stay Prepared — Let Us Handle Your Payroll 

Managing payroll changes and keeping up with evolving legislation can be time-consuming and complex. Let the TC Group payroll team take the pressure off.

Our experienced UK-based teams manage and processes payroll for businesses of all sizes, keeping everything accurate, compliant and running smoothly – so your employees are paid correctly and on time, every time.

Take control of payroll with confidence. Get in touch today for a free, no-obligation consultation and quote, and find out how our outsourced payroll services can support your business.