The Employment Rights Bill will introduce significant changes to SSP from April 2026 which are designed to provide better financial support for employees and simplify SSP eligibility. Below are the changes:
SSP payable from day one
Currently, employees must wait for three unpaid “waiting days” before SSP is paid. From April 2026:
• waiting days will be abolished.
• SSP will be payable from the first day of sickness absence.
This change will particularly benefit employees with short-term illnesses, ensuring they receive financial support immediately.
Removal of the Lower Earnings Limit (LEL)
At present, employees must earn at least £125 per week (2025/26) to qualify for SSP. From April 2026:
• the LEL will be removed.
• all employees, regardless of income level, will be eligible for SSP.
• this means that even part-time or lower-paid staff will have access to sick pay from the first day of absence.
New SSP calculation
Under the new rules, SSP will be calculated as the lower of:
• 80% of an employee’s average weekly earnings, or
• The flat rate, which is currently £118.75 per week (2025/26).
Why employers should plan ahead
Individually, each of these changes will increase the overall SSP cost for employers. Preparing for the April 2026 changes now can help ensure:
• payroll systems are updated in time
• HR policies reflect the new eligibility and payment rules
• employees are informed about their entitlements
Current SSP rules (for comparison)
Current rules 25/26:
Waiting days – 3 unpaid days
Earnings threshold – £125/week
SSP rate – Flat rate £118.75/week
New rules from April 2026:
Waiting days – Zero – SSP from day one
Earnings threshold – No threshold – all eligible
SSP rate – Lower of 80% of average earnings or £118.75/week
These upcoming changes underline the government’s focus on improving sick pay coverage and support for all employees.
How can you manage sickness absence from April 2026 onwards?
The hallmarks of good sickness absence policy don’t change in April next year; they just become more important to adopt.
While there are plenty of genuine employees who will benefit from the additional financial support that these changes provide, the changes may also make it more tempting for others to “pull a sickie”, knowing that they will still get some pay coming their way. By having more robust controls, you can discourage such behaviour. Here are the top areas to look at:
1. Sickness reporting – requiring employees to report sickness absence by telephone at the start of the first day of illness is best practice. It allows you to gauge their voice and get a sense of the circumstances of their illness. It is easier for them to deceive you if they are allowed to notify by email, text or by having a third party contact you on their behalf. Ask them to call every subsequent morning that they are ill, where possible.
2. Absence records – maintaining good absence records are vital for spotting suspicious signs (like often being ill on sunny Fridays) and for gathering evidence if you are to instigate disciplinary or capability measures.
3. Return to work interviews – these are a valuable tool. By embedding these in your business, you set the expectation that every absence is noticed. Where the absence is genuine, it gives you the opportunity to show care. Where it is suspicious it gives you the chance to better identify this and commence further investigation. Consistent return to work interviews should reduce spurious absence.
4. Investigations – give yourself scope to perform investigations where they may be required for disciplinary or capability reasons. Have a process for conducting them fairly, bring in expertise where required like occupational health, and apply them consistently throughout the business. Be mindful of discrimination, as many underlying causes of sickness absence could come into the sphere of disability.
For assistance email nicola.goodridge@goodhr.co.uk or call +447917878384
