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Statutory Sick Pay Reforms
Since 6 April 2026, significant changes to statutory sick pay have taken effect, removing barriers that previously prevented many low-paid workers from accessing SSP. Employers now face increased SSP liability from the first day of sickness absence.
The three-day waiting period has been abolished, meaning SSP is now payable from day one of sickness absence. Additionally, the lower earnings limit (previously £123 per week) has been removed, extending SSP eligibility to approximately 1.3 million additional workers. To prevent SSP exceeding actual earnings, the weekly rate is now the lower of the prescribed weekly rate or 80% of normal weekly earnings.
These changes mean some employees may receive less SSP than under the previous system. For example, an employee earning £125 per week would now receive only £100 (80% of earnings) rather than the full prescribed rate of £116.75. However, the government maintains that removing the waiting days means no employee will receive less SSP overall for the first three weeks of sickness absence, which represents 87% of all sickness periods.
Transitional protections apply for employees already receiving SSP before 6 April 2026 whose earnings fall between £125 and £154.05, who will continue to receive £123.25 per week during their current period of entitlement.