Changes to Statutory Sick Pay (SSP) Due in April 2026
From April 2026 the rules regarding SSP will change dramatically, and sick pay will become a right from day one of sickness. Currently there is a deterrent for employees to take odd days off for sickness, in that they have other wait three days before sick pay kicks in. However, form April next year that will change and SSP will have other be paid from day one.
There is no right to claim sick pay back anymore, so this is a direct cost to the employer. The lower earnings threshold is also being removed, so that all employees will be entitled to sick pay – those on earning below the set flat rate will be entitled to 80% of their normal weekly wage while off sick.
This is what the government says, “The current Statutory Sick Pay system fosters economic insecurity at work. Our commitment to remove the Lower Earnings Limit will ensure that all employees have access to Statutory Sick Pay and the peace of mind that this brings when they need to take time off work due to illness.
No one should feel forced to struggle through work when they are too unwell to do so. By removing the waiting period and making Statutory Sick Pay available from day one, we are providing security to those who need it most”, but what does it mean for employers?
Currently there are three waiting days before compulsory sick pay (SSP) kicks in – therefore if an employee decides not to turn up on a Monday after partying all weekend, they are losing wages and are not entitled to sick pay.
From April 2026 they will be able to take a duvet day and still get sick pay. On a more positive note, it may well mean that someone who is feeling ill may take a day off and avoid spreading illness amongst the rest of the workforce. We will only know what effect this will have on costs and productivity after inception next Spring.
The second part of the new rules is the abolishing of the Lower Earning Limit – this currently means that anyone earning less that £125 is not entitled to SSP, this changes in April and all staff will receive 80% of their wages as sick pay if they are under the limit.
Those over the LEL will receive SSP at the capped amount. Again, we will have to wait and see how this change affects businesses, in extra costs and potentially in lost productivity. What is certain is that employers will need now sick pay policies and potentially contract updates.
Members of Premier Total Cover will get these updates as part of their legal support retainer.
This is the Government website with a little more information: https://www.gov.uk/government/news/changes-to-sick-pay-will-help-people-stay-in-work-and-grow-economy
