Statutory Sick Pay (SSP) changes: steps to get ahead before April 2026

Significant changes to Statutory Sick Pay (SSP) will affect all UK employers from April 2026. 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
• What the SSP changes mean for employers
• Summary: SSP changes and key actions for employers
• 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.

The changes that will come into effect from April 2026 mean that all employees, regardless of their earnings level, will be entitled to receive SSP from their employers from day one of sickness – not the current day four.

SSP changes from April 2026

1. SSP from day one
   • The current three unpaid ‘waiting days’ will be abolished
   • SSP will be payable from the first day of sickness absence. This will improve financial support for short-term illnesses 
2. Removal of the Lower Earnings Limit (LEL)
   • The earnings threshold of £125/week (20256/26) will be removed
   • All employees, regardless of income level, will be eligible for SSP 
3. New SSP calculation
   • Employees will receive the lower of:
     • 80% of their average weekly earnings, or
     • The flat rate (2025/26 £118.75/week) 

What the SSP changes mean for employers

Cost and workforce planning implications of SSP changes

The removal of the LEL and the waiting period means that more people will be eligible for sick pay than ever before. In early 2024, the TUC estimated that around 1.3 million people currently miss out on sick pay. This will all change in April 2026. Not only will employers have to pay more sick pay, they’ll also face increased National Insurance (NI) and pension contributions.

So now is the time to be crunching the numbers to forecast the likely impact of SSP changes on your budget.

While this increase in costs is certain, it’s also likely that employers across the board will see a rise in the number of sick days being taken. Because, after all, if you’re unwell and will be paid regardless, why wouldn’t you take the day off sick? Presenteeism rates – where employees show up for work despite being unwell – should also drop.

Your to-do list

• Budget for higher SSP payments, and a greater volume of SSP payments – especially for short absences and lower-earning employees
• Make sure you have a robust process in place to maintain records, monitor sickness absence patterns, and support disciplinary or capability processes where needed. Our HR software, for example, has comprehensive absence management tools that simplify the process for all users, and help you keep accurate records 
• Upskill line managers to handle absences fairly and inclusively, especially for neurodivergent or chronically ill employees 
  
  

No time to train your people on absence management? We can help. Our Managing Absence microlearning course will help your line managers effectively manage absence in a fair and inclusive way

Policy implications of SSP changes

Employers need to consider their own policies and procedures when it comes to SSP.

Let’s say that your organisation has an occupational or company sick pay scheme in place. Does it mirror the current, ie pre-April 2026, rules for SSP, that no payment is due until day four?

Or are the scheme’s rules totally independent of SSP?

Either way, now is the time to review and rewrite your policies. Be sure to train your managers, too, on your absence management procedures.

Your to-do list

• Review sickness absence policies
• Review/amend employment contracts that reference SSP eligibility or the waiting period for SSP
• Review your occupational sick pay scheme. Elements to consider include:

• Alignment with SSP: if your occupational scheme mirrors SSP (eg no pay for the first three days), it may need revising to remain fair and compliant 
• Custom rules: while schemes that offer more generous terms (eg full pay for a set period) may not need structural changes, you should still review them to ensure consistency and clarity
• Software dependencies: if your occupational scheme is managed via custom software, ensure updates are scoped, resourced, and tested before 2026 

Read next:  Beyond the Bradford Factor: how Ciphr analytics supports a smarter absence scoring system

Impact of SSP changes on software and systems

SSP rules will be updated in payroll systems by most software vendors without your intervention or an additional change.

But the rules of your HR and payroll software may need to be revised or rewritten to deal with the changes to your occupational scheme (if you have one).

There will be a cost associated with these custom changes, and you’ll need to plan in support from your payroll software provider in advance. If you use a payroll bureau, they’ll also need to be notified of any changes.

Your to-do-list

• Check that your HR and payroll systems will be updated by the vendor in line with the new SSP rules
• If necessary, ask your software supplier to manually update your system to reflect your occupational sick pay scheme

Summary: SSP changes and key actions for employers

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.

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.”