Changes to Statutory Sick Pay (SSP) in 2026 under the Employment Rights Act 2025

• Employment

In a previous article, we explored the significant employment law changes proposed in the Employment Rights Bill. Since then, the legislative process has concluded; the Bill received Royal Assent on 18 December 2025, officially becoming the Employment Rights Act 2025. In this article, we look more into what this means for employers, with a focus on changes to Statutory Sick Pay (SSP) in 2026.

Current Statutory Sick Pay Law (until April 2026)

Under existing rules for the 2025/26 tax year, employees are generally entitled to a flat weekly SSP rate of £118.75 if they meet specific criteria:

• Eligible Status: The individual must be classed as an employee and have performed work under their contract.
• Earnings Threshold: Average weekly earnings must be at least £125 (the Lower Earnings Limit or LEL).
• Waiting Period: SSP is not payable for the first three “waiting days” of illness. Entitlement only begins on the fourth day of absence.

Key Changes to Statutory Sick Pay in April 2026

Major reforms to Statutory Sick Pay (SSP) are scheduled to take effect on 6 April 2026 under the Employment Rights Act 2025.  These changes represent a significant shift to the current Statutory Sick Pay (SSP) provisions, making it essential for employers to understand the full scope of their new obligations to ensure compliance and mitigate the risk of Employment Tribunal claims.

The Employment Rights Act 2025 introduces several reforms to broaden eligibility and provide immediate financial support for those who are too unwell to work. These changes to Statutory Sick Pay include:

• Abolition of Waiting Days: SSP will become a “Day One” right. The three-day waiting period is being removed, meaning employees are entitled to payment from their first full day of sickness absence.
• Removal of the Lower Earnings Limit (LEL): The minimum earnings threshold (set to be £129 in 2026) will be scrapped. This makes SSP available to all employees regardless of their income, specifically benefiting low income, part-time, casual, and zero-hour contract workers.
• Revised Payment Rates: The payment for lower earners will no longer be a flat rate. Instead, employees will receive the lower of:
  • 80% of their average weekly earnings, or
  • The standard weekly flat rate (increasing to £123.25 in April 2026).

What do the changes to Statutory Sick Pay in 2026 mean for employers?

These reforms will increase both the financial and administrative burdens on employers. Non-compliance with the changes to Statutory Sick Pay in 2026 also carries a heightened risk of Employment Tribunal claims from employees. To mitigate these risks, employers should take proactive steps to prepare for the transition by prioritising the following actions:

• Contractual Reviews: Ensure employment contracts and staff handbooks no longer refer to “waiting days” and reflect the new eligibility for low-income workers.
• “Qualifying Days” Precision: For irregular-hours workers, employers must be careful when defining “qualifying days” in contracts, as these will now trigger immediate payment from day one.
• Payroll Systems: Verify with payroll providers that systems are updated to handle the new “80% or flat-rate” dual calculation.
• Enforcement Awareness:  new Fair Work Agency will be established in April 2026 to enforce SSP and holiday pay compliance, increasing the risk for non-compliant businesses.

If you require professional support in reviewing and amending your existing contracts of employment or redrafting sick pay policies to meet the changes to Statutory Sick Pay in 2026, then contact GA’s experienced employment law team for assistance.

GA Solicitors in Plymouth is ranked in The Legal 500, Chambers UK and Chambers High Net Worth, so you can be assured you are in the best possible hands. You can contact me directly by emailing kate.watson@GAsolicitors.com or call 01752 203500.

You can read more employment law news and updates here.

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