Statutory Sick Pay Reforms Coming in April 2026
Businesses should begin reviewing budgets and policies now to prepare for the shift.
The 2026–27 tax year will bring the biggest changes to Statutory Sick Pay (SSP) in over a decade. From 6 April 2026, SSP will become payable from the first day of sickness absence, and eligibility rules will widen to cover lower-paid workers.
Day-One SSP Entitlement
Under current rules, employees are not paid SSP for the first three qualifying days of absence. This will end in April 2026, when SSP will apply from day one. The government’s aim is to make sick pay fairer and prevent employees being left without income at the start of an illness.
For employers, however, this change means increased costs and the need to update payroll systems, policies, and contracts. Organisations that rely on casual or short-term workers may feel the financial impact most, as even brief absences will attract SSP.
Expanding Eligibility
The government also plans to remove the Lower Earnings Limit, which currently excludes low-paid and part-time employees from SSP entitlement. If implemented, this reform will make sick pay available to all workers, regardless of earnings, extending employer responsibilities and increasing administrative demands.
Preparing for the Impact
These reforms are designed to promote fairness, but they will inevitably raise employer costs. Businesses should begin reviewing budgets and policies now to prepare for the shift.
Employment contracts referring to unpaid “waiting days” must be amended, and any enhanced sick pay schemes should be reviewed to ensure they remain suitable once SSP starts from day one.
Accurate absence records and clear return-to-work procedures will be more important than ever. Employers who track data effectively can identify trends, manage absence proactively, and maintain compliance.
How ECHR Can Help
ECHR supports employers in reviewing policies, updating contract terms, and ensuring compliance ahead of legislative change. We can help you assess your financial exposure, train managers on the new rules, and strengthen absence management processes.
With these major reforms less than 18 months away, early preparation will make all the difference. If you’d like advice on how these SSP changes may affect your business, get in touch with Emma Cromarty MCIPD at ECHR.
ENDS
Notes to Editors
For further information, please contact:
Emma Cromarty – HR consultant
EC Human Resources
Phone: 07929 506 143
Email: emma@ec-hr.co.uk
Wordsley, Sandringham Rd, Wordsley DY8 5HN
www.echumanresources.co.uk