Statutory Sick Pay (SSP) is set to change from April 2026 as part of wider employment law reform. These reforms represent one of the most significant updates to how SSP operates in decades and will affect employers of all sizes, particularly small and medium-sized businesses.
The purpose of the changes is to improve worker protections and reduce “presenteeism”, where employees attend work while unwell because they cannot afford time off.
More people will now qualify for SSP. The reforms expand who is eligible and remove some long-standing rules, so workers who previously weren’t entitled to statutory sick pay may now receive it.
What is changing in April 2026?
In summary, the key reforms include:
- Removal of the three waiting days
- SSP payable from day one of sickness absence
- Removal of the Lower Earnings Limit (LEL) as a qualifying threshold
- Introduction of a percentage-based payment model for lower earners
- Broader eligibility, including part-time and irregular workers
- Increased administrative responsibility for employers
Below, we explain the current rules and how they will change.
The current SSP rules (pre-April 2026)
Under the current system, SSP is payable from the fourth consecutive day of sickness absence (the first three days are “waiting days” and unpaid).
An employee must earn at least the Lower Earnings Limit (LEL) to qualify. For the 2025/26 tax year, this is £125 per week. SSP is then paid at a fixed weekly rate (currently £118.75 per week for 2025/26).
Employees earning below the LEL are currently not entitled to SSP at all, which means many part-time or low-paid workers receive no statutory financial support from their employer during sickness.
SSP is payable for up to 28 weeks per period of incapacity for work. After this period, employers will stop payments, and employees must explore other financial options.
New SSP rules from April 2026
From 6 April 2026, the system will change significantly. The reforms are designed to strengthen the safety net for lower-paid and vulnerable workers.
We’ve summarised some of the key changes that are going to come into effect from April 2026, here:
SSP paid from day one
The existing three-day waiting period will be removed. SSP will be due starting on the first eligible day of sickness absence.
This means employers will need to calculate and process sick pay immediately, rather than from day four.
Removal of the lower earnings limit (LEL)
Currently, employees must earn at least £125 per week (2025/26 rate) to qualify for SSP.
From April 2026, this earnings threshold will be removed. Employees will no longer be excluded simply because they earn below the LEL.
The Government has previously estimated that “there are currently between 1 and 1.3 million individuals who earn below the LEL, meaning they do not have access to SSP, and do not benefit from a minimum level of financial support from their employer during times of sickness.” This includes many part-time, casual and irregular workers.
Under the new regime, these individuals will gain entitlement.
Pro-rata SSP for low earners
This means:
- Higher earners will receive the flat statutory weekly rate.
- Lower earners will receive 80% of their average earnings (if that amount is lower than the flat rate). Before, lower earners were entitled to nothing.
This approach is intended to ensure fairness across income levels while still providing meaningful financial support to low-paid workers.
Current vs new SSP rules
| Rule | Current SSP (2025/2026) | From April 2026 |
| Waiting days | 3 unpaid days | Removed – paid from day 1 |
| Minimum earnings threshold | Must earn at least £125 per week (LEL) | Removed |
| Low earners | Not eligible | Eligible – 80% of earnings (subject to cap) |
| Coverage | Employees meeting LEL | Wider worker eligibility, including low earners |
| Payment structure | Flat weekly rate | Flat rate or 80% of earnings |
| Employer admin | Established system | Increased calculations and payroll responsibility |
What employers need to do now
Although implementation is scheduled for April 2026, it is best to prepare in advance.
Update policies
Handbooks, internal procedures and employment contracts may benefit from review to ensure they do not contain wording that conflicts with the new eligibility framework. Absence policies may also need to be updated so they reflect the removal of waiting days and the introduction of day-one entitlement.
Update payroll and HR systems
Payroll and HR systems will need to be capable of calculating SSP from the first qualifying day of absence and removing any automated Lower Earnings Limit checks.
Systems may also need to incorporate the percentage-based calculation for lower earners and support accurate record-keeping in line with the revised regime.
Train management and HR teams
Those responsible for managing absences, including HR professionals and line managers, will need to be familiar with the upcoming changes and how they affect eligibility and payment calculations. A clear understanding of the new rules can help reduce the risk of disputes or errors in SSP payments.
Budgeting and cost planning
The expanded eligibility and removal of waiting days are likely to increase overall SSP costs for some organisations, particularly those with large part-time or high-turnover workforces. Forward planning may help businesses assess the potential financial impact of the reforms.
Risks of not preparing
The SSP changes come into effect on April 6th 2026. Employers who are not prepared for the new SSP rules may face:
- Unlawful deduction of wages claims
- Employment tribunal proceedings
- Breach of statutory rights
- HMRC enforcement issues
- Reputational damage
- Employee relations difficulties
How employment solicitors can help
Solicitors who specialise in employment law can help employers to navigate these changes to ensure compliance.
Solicitors can review and update current sickness absence policies and ensure contracts align with the new statutory regime.
They can also advise on payroll compliance risks, train HR teams, assist with disputes or tribunal claims and support implementation and planning.
Early legal input may help prevent costly mistakes once the new regime comes into force.
Staying ahead with Clapham & Collinge
The April 2026 Statutory Sick Pay reforms significantly expand eligibility and remove long-standing restrictions. The removal of waiting days and the abolition of the Lower Earnings Limit represent major changes to how sick pay is calculated and administered.
Employers can take steps and act early to review policies, update payroll systems and prepare management teams for the new rules.
Our employment law team can support organisations in understanding and preparing for the upcoming SSP reforms, across all of our Norfolk branches.
Norwich
Tel: 01603 693500
Sheringham
Tel: 01263 823398
North Walsham
Tel: 01692 660230
enquiries@clapham-collinge.co.uk
The information in this article is for general guidance only and should not be treated as legal advice. It is not a substitute for obtaining advice tailored to your circumstances. While we aim to ensure accuracy at the time of publication, laws and guidance may change. Clapham & Collinge LLP accepts no liability for any loss arising from reliance on this content. For personalised advice, please contact our client relations team to book an appointment.