What you need to know

The Department for Business and Trade (DBT) has announced that significant reforms to Statutory Sick Pay (SSP) will come into effect from April 2026. The changes are designed to strengthen employee rights but may also increase costs for employers.

The key reforms are as follows:

• SSP will be payable from the first day of sickness absence (currently, it is payable from the fourth day)
• Employees will no longer need to meet the £125 per week earnings threshold to qualify for SSP
• For employees earning less than £125 per week, their SSP entitlement will be the lower of:
• 80% of their normal weekly earnings; or
• The set SSP rate (currently £118.75 per week)

These reforms are expected to create additional costs for many employers, particularly those already managing the recent increases in the National Minimum Wage and Employers’ National Insurance contributions.

It is worth noting that, unlike statutory maternity or paternity pay, SSP cannot be reclaimed from HMRC. Businesses should therefore plan carefully and forecast potential rises in payroll expenditure, especially if they experience high levels of staff absence.

Employers remain responsible for ensuring that employees are paid the correct amount of SSP at the correct time. It will be vital to ensure that payroll systems are fully updated ahead of April 2026.

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