Significant changes to Statutory Sick Pay (SSP) will affect all UK employers in 2026/7. But there’s lots of work to do before then. Here, we guide you through the forthcoming changes, the implications for your HR and payroll systems, policies, and budgets, and share what work you need to do now to be ready.
Let’s dive in.
In this article
- A short history of SSP
- SSP changes from April 2026
- Transition scenarios
- What the SSP changes mean for HR
- Average Weekly Earnings (AWE) calculations
- FAQs
- We’re here to help you make sense of SSP
A short history of SSP
SSP was first introduced in 1983 under the Social Security and Housing Benefits Act.
Although there have been some changes in the past 40 years – to remove employers’ ability to claim back the costs of the payments, and to support employers during the Covid-19 pandemic – it’s been largely unchanged since 1985, when it was revised and extended to a maximum qualifying period of 28 weeks. It was probably well overdue a review.
SSP changes from April 2026
- SSP will be payable from first day of sickness:
- Removal of waiting days
- Absence paid from day one for all employees
- Removal of the Lower Earnings Limit (LEL)
- All employees entitled regardless of earnings
- Increase to business costs and absence management
processes - Payment will be at 80% of average weekly earnings (AWE) or the flat statutory rate in force at the time, whichever is the lower
- Other exclusions remain, such as:
- Employees have already received the maximum 28 weeks of SSP
- They have linked periods of sickness spanning three years
- They are receiving Statutory Maternity Pay (SMP) or Maternity Allowance (MA)
- They are off sick with a pregnancy-related illness within four weeks of the due date
- They were in legal custody or on strike on the first day of absence
- They are working under IR35 rules
- There will be transition rules
New SSP rules take effect from 6 April 2026, while other statutory payment rates apply from 5 April 2026.
A transition protection period will apply for employees already off sick, lasting up to 28 weeks, with the latest possible end date being 17 October 2026 (for someone whose sickness began on 5 April 2026). Transition rules will apply where sickness spans 6 April 2026.
Enforcement of the new rules will sit with the Fair Work Agency.
Waiting days and linked periods
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Waiting days are removed; SSP is paid from day 1
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A Period of Incapacity for Work (PIW) is now one day (previously four)
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Linked periods remain, but can now link via individual days
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All qualifying days count towards the 28-week maximum entitlement
Payments
- SSP is paid from the first day of absence
- The LEL requirement is removed; all employees are eligible
- Payment is 80% of AWE or the flat rate (whichever is lower)
- AWE must be converted into a daily rate based on qualifying days
- Payments are rounded up to the nearest 1p
- SSP remains capped at the statutory flat rate
- For linked periods, the first PIW is usually used for AWE calculations
Transition scenarios
Employees below the LEL (before 6 April 2026)
Employees who didn’t previously qualify due to low earnings will become eligible from 6 April, paid at 80% of AWE, based on pre-sickness earnings.
Employees serving waiting days
Anyone in waiting days on 6 April will start receiving SSP from that date, but won’t be paid for earlier waiting days.
Long-term sickness
Employees already receiving SSP before 6 April will:
- Continue to receive the flat SSP rate (£123.25)
- Be protected if 80% of AWE would be lower
- Remain on this rate until they return, entitlement ends, or circumstances change
This protection lasts up to 28 weeks.
Key rule
Anyone already receiving SSP before 6 April will remain on the flat rate until:
- They return to work
- Their entitlement ends
- Their employment ends
- A pregnancy-related exclusion applies
If they go off sick again, even within the 56-day linked period, the transition rules are broken and the new rules apply.
What the SSP changes mean for HR
These changes will have a direct impact on how HR teams manage absence and workforce planning:
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Absence reporting processes and return-to-work conversations will become increasingly important
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Presenteeism may decrease
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Workforce coverage and temporary staffing plans may need extra budget
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Clear communication is essential
Average Weekly Earnings (AWE) calculations
The way AWE is calculated remains unchanged.
It’s important to note that AWE for SSP is different to calculations used for parental leave and holiday pay.
To calculate AWE:
- Add up all earnings from the relevant period (usually the 8 weeks before sickness begins)
- Divide by the number of weeks in that period
- Include any ‘blank’ weeks where no pay was received
- If fewer than 8 weeks are available, use what you have
- If the employee hasn’t been paid yet, use their expected salary
FAQs
Can employers reclaim the additional cost?
No, there is currently no provision to reclaim SSP costs.
What about employees previously below the LEL?
They will become eligible from 6 April under transition rules.
Does a PIW still apply?
Yes, but it is now just one day.
Does this affect statutory parental pay?
No, there are currently no changes to parental payments.
Do employers have to apply the new rules?
Yes, this is a statutory minimum requirement.
Do qualifying days still matter?
Yes, they determine the daily SSP rate.
Do these changes affect all employers?
Yes, regardless of size.
Are fit notes still required?
Yes, from day sevon, unchanged.
Are employees entitled to SSP for short absences?
Yes, from day 1, even for 1–2 days (if qualifying days apply).
Do you still need four days off to qualify?
No, a single day now forms a PIW.
How should April payroll be handled?
Apply new rules only to sickness from 6 April onwards.
Do linked absence rules still apply?
Yes, but now single days can link periods.
Does entitlement reset in April?
No, the 28-week maximum still applies.
How are part-time or variable workers affected?
They are more likely to qualify, due to removal of the LEL.
Do you need to show SSP on payslips if paying full sick pay?
Not required, but recommended for transparency and compliance.
What about phased returns?
Non-working sick days (e.g. mid-week) are now payable as SSP.
Should you require self-certification from day one?
Yes, supported by strong absence management processes.
How is AWE calculated for new starters?
Use their expected/contractual pay if they haven’t yet been paid.
We’re here to help you make sense of SSP
Whether you need to train your managers to manage absence, are looking for better absence management software, or are an existing customer and want to check that your HR and payroll system is all set for SSP changes, we’re here to help.
Your next read: The new Employment Rights Bill: key changes and how HR can prepare now
About the author
Claire Warner FCIPP is Ciphr’s regulatory analyst, and one of our team of payroll experts. She says: “Having ‘fallen’ into payroll like so many others, I’ve worked in the profession for over 40 years in multiple roles. This includes running payrolls in various industry sectors and working with software houses to develop software and implement systems for clients. I’ve also designed and delivered professional training and qualifications, and sessions, conferences and webinars on various payroll-related subjects. I now use this knowledge and love of payroll and the legislation that impacts it to help guide, inform and support others within the profession.”