Statutory Sick Pay reforms: what employers need to know ahead of April 2026

The Government has confirmed that, from April 2026, two
significant reforms to Statutory Sick Pay (SSP) are expected to come into
force.

If you’re
an employer, it’s important to understand what these changes mean in practice
not only for your employees, but also for your policies, budgets, and
compliance obligations. In this article, we’ll walk you through the key
changes, what they mean for your business, and how Stallard Kane’s HR team will
support you every step of the way.

What are the two key changes?

1. SSP
will be payable from Day 1 of sickness absence

Currently, employees are only
eligible to receive SSP from the fourth qualifying day of sickness absence; the
first three days are unpaid, unless the employee qualifies for enhanced sick
pay.

Under the new legislation, the
three-day waiting period will be removed, and SSP will become a ‘Day 1’
entitlement. This means it will be paid from the first qualifying day of
sickness absence (provided eligibility criteria are met).

2. The
Lower Earnings Limit will be removed

At present, an employee must earn
at least the Lower Earnings Limit (LEL), currently £123 per week (2025/26
rate), to qualify for SSP.

From
April 2026 this minimum earnings threshold will be abolished. This means that
all employees, regardless of how much they earn, will be eligible for SSP if
they meet the other qualifying conditions (such as being classed as an employee
and being off work due to illness for at least four consecutive calendar
days). 

What do these changes mean for me as an employer?

These reforms represent a shift
in both cost and administration for employers. Here’s what to consider:

• Increased sick pay liability: employers
  will potentially pay more in SSP, as it will begin from Day 1 of absence
  rather than Day 4
• More employees will qualify: with the LEL
  removed, even those working limited hours or on very low incomes who were
  previously ineligible will now be entitled to SSP
• Greater emphasis on absence management:
  employers will need to ensure that absence reporting procedures are
  robust, as accurate records will be crucial for compliance and payroll.
  Prompt and clear recording of the start date of absence is essential to ensure
  SSP is paid correctly from Day 1.
• Possible impact on Enhanced Sick Pay
  schemes: if you offer contractual sick pay, the interaction between
  enhanced policies and the new SSP rules should be reviewed; policies may
  need to be realigned to ensure they are not inadvertently overpaying or
  duplicating entitlement

What should I do to prepare?

Although these changes aren’t due
until April 2026, early preparation is key. Here are the practical steps
employers should begin taking now:

• Equip managers with the knowledge and
  tools to handle SSP queries, report absences correctly, and understand the
  updated entitlement criteria
• Include absence management in your ongoing
  compliance training

How will Stallard Kane support me? 

At Stallard Kane, we know that
employment law updates can quickly become a burden for busy businesses. That’s
why our HR team is already preparing the tools, templates, and support you’ll
need to navigate the 2026 SSP reforms with confidence.

We’ll ensure your absence, sick
pay, and employee conduct policies are fully compliant with the new SSP rules
and tailored to your business context, leaving you free to focus on running
your business.

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