If you employ people in the UK, Statutory Sick Pay (SSP) is about to get more expensive, more universal, and significantly harder to manage if your policies are not up to date. From 6 April 2026, two major changes take effect simultaneously under the Employment Rights Act 2025, the biggest overhaul of UK employment law in a generation.
This article explains exactly what is changing, which employers are most affected, and the three practical steps you need to take before the April deadline.
What Is Changing on 6th April 2026?
The Lower Earnings Limit is abolished. Currently, an employee must earn at or above approximately £123 per week to qualify for Statutory Sick Pay. From 6 April 2026, that threshold disappears entirely. Every employee, regardless of how few hours they work or how little they earn, will be entitled to SSP from their first day of employment.
The three-day waiting period is removed. Under the current rules, SSP does not begin until the fourth day of sickness absence, leaving the first three days unpaid. From 6 April 2026, SSP is payable from day one of incapacity. No waiting period. No exceptions.
Who Does This Affect?
If your workforce consists entirely of well-paid, full-time permanent employees, your additional exposure is relatively contained. However, if you employ part-time staff, casual workers, people on low hourly rates, or workers in sectors such as retail, hospitality, social care, or logistics, the financial impact could be considerable.
Consider the receptionist working 12 hours a week, the kitchen porter earning below the current earnings threshold, or the care worker on a variable rota. None of them currently qualify for SSP. From April 2026, all of them do, automatically and from day one of sickness.
What Does It Actually Cost?
The weekly rate of SSP for 2025/26 is £116.75. Employers pay this directly and cannot reclaim it from HMRC (the rebate scheme was abolished years ago). For a small business with several low-paid or part-time employees, even a modest rise in short-term sickness absence could have a noticeable payroll impact.
Beyond the direct cost, there is a procedural dimension. SSP requires proper absence recording, fit note management, and return-to-work processes. If those are not already in place across your entire workforce, including workers who previously fell outside the earnings threshold, they need to be before April.
Three Things You Need to Do Before April 2026
- Review your sick pay policy. If your policy references the Lower Earnings Limit or the waiting period, it is already out of date. Any provision stating that SSP only applies after three days of absence, or only to employees above the earnings threshold, will be legally incorrect from 6 April 2026. Update it now.
- Check your contracts of employment. Many standard employment contracts contain sick pay clauses that cross-reference SSP eligibility or the waiting period. Those clauses need amending before April. Contracts that remain unchanged will create confusion and potential liability.
- Review any enhanced sick pay scheme. If you offer enhanced sick pay, for example full pay for the first two weeks of absence, consider whether it is financially sustainable given the expanded pool of employees who may now access it. Some businesses will need to revise enhanced entitlements before April to avoid unintended cost exposure.
The Broader Picture
These SSP changes do not arrive in isolation. April 2026 also introduces day-one rights for Paternity Leave and Unpaid Parental Leave, a doubling of the protective award for collective redundancy failures, the launch of the Fair Work Agency, and a lower threshold for trade union recognition.
Looking further ahead, from January 2027 the unfair dismissal qualifying period drops from two years to just six months, fundamentally changing how employers manage new starters. The employers who will find 2026 and 2027 difficult are those who react to change rather than prepare for it.
How Employment Law Solutions Can Help
Employment Law Solutions works with SMEs across the UK on a retained basis, providing employment law and HR expertise whenever you need it. If your sick pay policy needs updating, your contracts require review, or you want to understand what the next 12 months means for your business, we are here to help.
Contact Employment Law Solutions today for a free consultation and make sure your policies, contracts, and procedures are ready before the April deadline. Visit employmentlawsolutions.co.uk or call us to speak to an adviser.
This article reflects the law as at March 2026. It is for general information purposes and does not constitute legal advice.
