Statutory Sick Pay (SSP) Changes: What Employers Need to Know for April 2026

From April 2026, updates to Statutory Sick Pay (SSP) are set to reshape how employers manage sickness absence and payroll processing across the UK. These changes, introduced by the UK Government and administered through HM Revenue & Customs (HMRC), are expected to expand eligibility, increase payment obligations, and place new demands on payroll systems.

This article outlines the current SSP framework, what’s changing, and how businesses can prepare.

The Current SSP Framework

As it stands, Statutory Sick Pay provides financial support to eligible employees who are unable to work due to illness. Key features of the current system include:

• Eligibility threshold: Employees must earn at least the Lower Earnings Limit to qualify.
• Waiting days: SSP is only payable from the fourth consecutive day of absence (the first three days are unpaid).
• Payment rate: A fixed weekly rate set annually by the government.
• Duration: Payable for up to 28 weeks per period of sickness.

While this system has been in place for years, it has often been criticised for excluding lower-income workers and creating administrative complexity for employers.

What’s Changing in April 2026?

The reforms coming into effect aim to modernise SSP and make it more inclusive. The most notable changes include:

1. Removal of Waiting Days

One of the most impactful changes is the elimination of the three unpaid waiting days. SSP will become payable from day one of sickness absence.

Impact:

Employers will need to process more SSP payments, even for short-term absences that previously did not qualify.

2. Expanded Eligibility

The Lower Earnings Limit requirement is expected to be removed or reduced, allowing more employees—particularly those in part-time or lower-paid roles—to qualify for SSP.

Impact:

A broader section of the workforce will now be eligible, increasing overall SSP liability for employers.

3. Adjustments to Payment Calculations

There may be updates to how SSP is calculated, particularly for employees with irregular earnings or variable hours.

Impact:

Payroll teams will need to ensure their systems can handle more complex calculation methods and remain compliant with updated rules.

4. Increased Employer Responsibility

With more employees qualifying and payments starting earlier, employers will bear a greater financial and administrative burden.

Impact:

Budgeting for absence costs will need to be reassessed, especially in sectors with higher sickness rates.

What This Means for Payroll and HR Teams

These changes are not just policy updates—they will directly affect day-to-day operations:

• Payroll systems must be updated to reflect new eligibility and payment rules
• Processes for tracking absence will need to be more precise from day one
• Compliance checks will become more important as complexity increases
• Training may be required for payroll and HR staff

Failure to adapt systems in time could result in incorrect payments or non-compliance risks.

Financial and Operational Considerations

Employers should start preparing now to manage the financial implications:

• Higher SSP costs due to increased eligibility and earlier payments
• More frequent claims, especially for short-term sickness
• Potential impact on absence trends, as financial barriers to taking sick leave are reduced
• Forward planning and accurate forecasting will be essential to absorb these changes without disruption.

Preparing for April 2026

To stay ahead of the reforms, organisations should:

• Review current SSP policies and payroll processes
• Engage with payroll software providers about upcoming updates
• Model potential cost increases based on workforce data
• Communicate changes clearly to employees

Final Thoughts

The April 2026 SSP reforms represent a significant shift in how sickness absence is supported and managed in the workplace. While they aim to create a fairer system for employees, they also introduce new challenges for employers.

Early preparation will be key. Businesses that proactively update their systems, budgets, and processes will be best positioned to remain compliant and manage the transition smoothly.

Neil Manuel