Statutory Sick Pay changes in April 2026 introduced day one entitlement and removed the earnings threshold for an estimated 1.3 million excluded workers. The reforms, introduced under the Employment Rights Act 2025, represent the biggest overhaul of SSP since the system began in 1983.
Key figures at a glance:
- SSP is now payable from day one of sickness absence — the three unpaid “waiting days” have been abolished.
- The Lower Earnings Limit (£125 per week in 2025–26) no longer applies, meaning all eligible employees qualify regardless of income.
- The flat weekly SSP rate for 2026–27 is £123.25, or 80% of average weekly earnings, whichever is lower.
- An estimated 1.3 million low-paid workers now qualify for the first time.
- Government figures estimate the reforms could increase employer SSP costs by around £450 million per year.
Why statutory sick pay was reformed
Before 6 April 2026, employees had to wait three days before receiving any SSP. Those earning below £125 per week received nothing at all.
According to government estimates, that framework left approximately 1.3 million low-paid employees without any entitlement. Those affected were disproportionately women, part-time staff, and younger workers.
Deputy Prime Minister Angela Rayner led the Employment Rights Act 2025 SSP provisions through Parliament. She described the previous system as one where workers faced insecure and low-paid conditions.
The Department for Business and Trade confirmed the statutory sick pay changes as part of a wider April 2026 employment law package. That package also introduced day one paternity leave, day one unpaid parental leave, and enhanced whistleblowing protections.
What the new SSP rules mean
Three landmark changes took effect on 6 April 2026. SSP day one payment replaced the old three-day waiting period, giving employees SSP from the first qualifying day of absence.
The SSP Lower Earnings Limit removed barrier means all eligible employees now qualify regardless of earnings. Previously, anyone earning below £125 per week was shut out entirely.
A new dual-rate calculation determines SSP as the lower of 80% of average weekly earnings or £123.25. Average weekly earnings are based on the eight weeks before the sickness absence starts.
For example, an employee earning £100 per week receives £80 in SSP (80% of £100). An employee earning £250 per week receives £123.25, since 80% of that figure (£200) exceeds the cap.
What has changed for employers
Employers face higher SSP costs and more frequent payroll processing under the statutory sick pay reform 2026. The government’s economic analysis estimates the combined cost at around £450 million annually, roughly £15 per employee.
SSP remains taxable earnings, with Income Tax and National Insurance deducted through PAYE. The maximum payment period is 28 weeks, including linked periods where absences fall within 56 days of each other.
Transitional rules apply where a period of incapacity began before 6 April 2026. The previous SSP rules, including waiting days, continue for that continuous absence.
Removal of the Lower Earnings Limit applies only to SSP. Statutory Maternity Pay, Paternity Pay, Adoption Pay, and Shared Parental Pay still require employees to meet the existing earnings threshold.
The new Fair Work Agency, also operational from April 2026, holds enforcement powers over SSP compliance. Employers who fail to pay correctly may face civil penalties and workplace inspections.
What Statutory Sick Pay changes April 2026 mean
If you have been off sick since 6 April 2026, your employer is required to pay SSP from day one. SSP eligibility 2026 no longer depends on earning above a minimum threshold.
Part-time and lower-paid workers now qualify for sick pay for low earners UK for the first time. Eligibility conditions still apply, including employee status, qualifying days, and proper sickness notification.
Steps to take now
- Check your payslip to confirm SSP has been paid from day one of any absence starting on or after 6 April 2026.
- Log in to your personal tax account on GOV.UK to verify your tax code reflects your current income for the 2026 to 2027 tax year.
- Contact your employer’s payroll team if SSP has not been calculated correctly under the new SSP rate 2026/27.
- Keep records of your sickness absence dates, as the Fair Work Agency may investigate SSP disputes on your behalf.
Because SSP is taxed through PAYE, incorrect tax codes during sickness could lead to over-deduction or under-deduction of tax. HMRC may issue a P800 calculation at year-end, potentially resulting in a tax refund.
Could you be owed a tax rebate?
Periods of sickness absence can disrupt your usual earnings pattern, sometimes leading to an incorrect PAYE deduction across the tax year. If your tax code was not adjusted while receiving SSP at the SSP 80% average weekly earnings rate, you may have overpaid Income Tax.
Tax Rebate Services can help you check whether a period of SSP or a change in circumstances has resulted in an overpayment. Visit the tax relief and expenses of employment guide to find out whether you could be owed money back from HMRC.
Key Takeaways
- SSP is now payable from day one of sickness absence, with the three-day waiting period abolished for absences starting on or after 6 April 2026.
- All eligible employees qualify for SSP regardless of earnings, following the removal of the Lower Earnings Limit.
- Your SSP rate is the lower of £123.25 per week or 80% of your average weekly earnings, ensuring lower-paid workers receive proportionate support.
- If you were already off sick before 6 April 2026, the previous rules continue for that absence under transitional provisions.
- Incorrect tax codes during SSP periods could mean you have overpaid tax — check your personal tax account or contact HMRC.
