The Department for Business and Trade (DBT) has confirmed that significant reforms to Statutory Sick Pay (SSP) will come into effect from April 2026. These changes are aimed at strengthening employee rights but may also increase costs for employers. The main updates are:

  • SSP will become payable from the very first day of sickness absence (currently it is only payable from the fourth day).

  • The existing £125 per week earnings threshold for SSP eligibility will be removed.

  • For employees earning under £125 per week, their SSP entitlement will be the lower of:

    • 80% of their usual weekly earnings; and

    • The standard SSP rate (currently £118.75 per week).

These SSP reforms are expected to add to the financial burden on many employers, particularly in light of recent increases to the National Minimum Wage and Employers’ National Insurance contributions.

It is important to note that, unlike statutory maternity or paternity pay, SSP costs cannot be reclaimed from HMRC. Businesses should therefore plan ahead and factor in potential rises in payroll expenditure, especially those with higher levels of staff absence.

Employers must also ensure that payroll systems are fully updated in time for April 2026, to guarantee employees receive the correct SSP payments without delay.