Is the Government Making Changes to Statutory Sick Pay from April 2026?
At present, to claim SSP, an employee must earn, on average, at least £125 per week (the lower earnings limit) and be off sick for at least four consecutive days (including non-working days). This is known as a ‘period of incapacity for work’. In addition, for the first three qualifying days of sickness absence, where an employee would normally be expected to work (qualifying days), no SSP is payable. These are referred to as waiting days.
As part of the Government’s commitment to "make work pay", the Employment Rights Bill proposes to introduce changes to SSP entitlement from early April 2026 whereby:
The 3 waiting days before SSP is payable will be removed so that SSP becomes payable from the first day of sickness absence. The Government’s rationale is that at present, some unwell employees may feel forced to come to work thus increasing presenteeism and reducing overall productivity.
The lower earnings limit (LEL) threshold, currently set at £125.00 per week, is to be removed thus no obligation on the part of an employee to meet minimum income criteria. The Government estimates that at present 1 million individuals who earn below the LEL do not have access to SSP and the change will benefit them.
With those employees earning on average below the current £125.00 per week, they will be paid SSP at 80% of their normal weekly earnings or the flat rate whichever is the lower. Further Government guidance on this is awaited. The Government flat rate to apply for those earning on average £125.00 per week.
These changes aim to enhance support for employees, particularly those on low incomes. However, they will also introduce additional costs for employers. There are concerns that some employees may abuse the new entitlement by taking unnecessary sick days, for example “Monday blues,” Christmas shopping, or when annual leave requests are refused.
Employers are therefore advised to review their sickness absence policies and consider introducing provisions that, aside from disability-related absences, persistent short-term absences may be treated as misconduct and subject to disciplinary action. Policies should also reserve the right for employers to seek medical clarification in cases of persistent and/or long-term health issues.
If you require any further assistance, please do not hesitate to contact our HR/Legal advice line team at 01455 852 028.
