Employment Rights Act: Statutory Sick Pay (SSP) Update

More change is coming your way, and this one hits  payroll, absence management, and manager confidence. 

From  6 April 2026, Statutory Sick Pay (SSP) is getting a major overhaul - and yes, it’s another one you’ll want to prepare for early. 

What’s Changing from 6 April 2026 

Day one right 

• Right to Statutory Sick Pay (SSP) from day one of sickness, rather than day four, and from the start of employment. 

Removal of Lower Earnings Limit (LEL) 

• The  Lower Earnings Limit is being removed, meaning  all eligible employees will have access to SSP, regardless of how much they earn. 

New SSP payment structure 

• SSP will be paid at: 

  • 80% of an employee’s normal weekly earnings,  or 

  • The  flat SSP rate, currently £123.25 

• Whichever is lower 

This is a shift from a one-size-fits-all flat rate and will require careful payroll handling.  

What This Means for Employers 

• More employees will qualify for SSP, meaning a financial impact on the business  

• Payroll calculations will become more nuanced 

• Absence management conversations may become more frequent and more sensitive 

• Managers will need confidence in explaining SSP clearly and consistently 

Top tip: Every business should be looking at the bigger picture of how sickness operates in their business, from reporting and absence management to cost and operational impact. We can help you review the data, highlight the risk areas and create an action plan to minimise the impacts. 

How to Prepare Now 

• Brief your managers and employees: Make sure everyone understands what’s changing and what SSP will look like in practice. 

• Review your documentation:  

  • Check and update: 

    • Absence and attendance policies 

    • Contracts of employment 

    • Return-to-work forms and sickness processes 

• Engage your payroll provider early: Confirm they’re ready for the changes and that systems can handle the new calculations. 

 SSP might sound straightforward, but these changes mean  more responsibility, more admin, and more conversations. Getting ahead now will save a lot of headaches later. 

Need help reviewing your absence processes or getting managers comfortable with what’s coming? You know where to find the Streetwise HR Gurus.