Category: Employment Law
Significant changes to Statutory Sick Pay (SSP) are approaching in April 2026, and businesses need to start preparing now. The Employment Rights Bill will fundamentally alter how sick pay operates, with implications for your costs, processes and workforce management.
What’s Changing?
From April 2026, two major changes will take effect:
Firstly, SSP becomes payable from day one of sickness absence. Currently, employees wait through three unpaid days before receiving SSP from day four. This waiting period will be completely abolished, meaning immediate financial support for anyone who falls ill.
Secondly, the Lower Earnings Limit will be removed. Today’s threshold of £125 per week means many part-time and lower-paid workers receive no sick pay at all. Once this limit is removed, every employee on your payroll will qualify for SSP, regardless of their earnings level.
The calculation method will also shift to the lower of either 80% of average weekly earnings or the flat rate (currently £118.75 per week), which means SSP will potentially increase to £123.85 per week.
While most employees won’t see a change in the amount they receive, the timing and eligibility represent a fundamental change.
Understanding the Financial Impact
These changes will increase SSP costs across all businesses. With no waiting period, you should anticipate a rise in short-term absences being claimed. Currently, the average UK worker takes 4.4 sick days annually, but removing the barrier to claiming may well push this figure higher.
The removal of the earnings threshold particularly affects businesses employing part-time staff, casual workers, or those on lower wages. Employees who previously received nothing will now qualify for SSP from their first day of illness.
For many businesses, this represents not just increased direct costs but also additional administrative burden. Your payroll systems will need updating, and your HR processes will require a complete review.
Take Action Now
The April 2026 deadline may seem a while away, but preparation should begin immediately. Start by auditing your current sickness absence levels. What’s your baseline? How many short-term absences occur that currently fall under the four-day threshold? This data will help you forecast the financial impact and plan accordingly.
Your sickness absence policy needs a comprehensive review. Move beyond simply documenting what happens when someone calls in sick. Instead, create processes that actively manage absence. This includes clear expectations for notification, self-certification requirements and structured return-to-work conversations.
Every manager should understand their role in managing sickness absence. This means training on recording absences accurately, applying your policy consistently, and handling sensitive conversations with employees who may be struggling. Our HR Consultants can support you and your managers with how to manage these sometimes difficult conversations.
The Equality Act Dimension
Disability-related absence must be handled differently from general sickness absence. Your policy should explicitly address this distinction. Updating your approach to SSP provides an ideal opportunity to ensure compliance with the Equality Act 2010.
Failing to make appropriate adjustments could expose your business to discrimination claims; they aren’t optional extras – they are legal requirements.
Clear documentation and manager training are your best protection here. Everyone handling sickness absence should understand when and how to apply these adjustments. If you need support developing compliant policies, our team of consultants can help you navigate these requirements.
Beyond Compliance: Building Healthier Operations
While these changes bring challenges, they also create opportunities. Rather than simply reacting to absence, consider what causes people to go off sick in the first place.
Train your managers to recognise early warning signs of stress or burnout. Develop their skills in managing workloads effectively and having supportive conversations with team members. When managers can identify and address issues early, you prevent absences rather than just managing them.
Preparing Your Systems
Don’t underestimate the practical preparations required. Your payroll system must be configured to process SSP from day one of absence and to include employees who currently fall below the earnings threshold. Test these changes well before April 2026; discovering errors when an employee makes their first claim is far too late.
Update all employee communications to reflect the new entitlements. Your employee handbook, employee resources and new starter materials all need revising. Clear communication prevents confusion and reduces the administrative burden of answering individual queries.
Starting Your Preparation
Compare your current policies, systems and manager capabilities against what April 2026 will require. This reveals exactly where you need to focus your efforts.
Prioritise updating your sickness absence policy and training your managers. With robust processes and capable managers, you’ll handle the increased volume of claims efficiently.
Using your historical absence data, calculate what these changes will cost you. This enables informed budgeting and helps you make the case for any necessary investments in wellbeing programmes or additional resources.
How Access2 Human Resources Can Help
At Access2 Human Resources, we’re supporting businesses to prepare for these changes. Whether you need help reviewing your policies or training your managers, our team has the expertise to guide you through these changes.
Start your preparation today. Contact us here.