In a latest Acas survey, employers and workers had been requested which three adjustments within the Employment Rights Act 2025 would have the largest affect of their office.
Surprisingly, the brand new rights on Statutory Sick Pay (SSP) topped the checklist for each teams, named by 43% of employers and 36% of workers. The discount within the unfair dismissal qualifying interval from two years to 6 months was the second most vital change (31% of employers and 30% of workers). Employers ranked the brand new paternity depart day-one rights because the third-largest reform, whereas workers stated it was simpler entry to versatile working preparations.
The SSP reforms take impact from 6 April 2026, aiming to enhance monetary safety, significantly for part-time workers and people in low-paid jobs. Whereas extra workers will qualify for SSP, employers will face elevated prices and compliance necessities, significantly for small and medium-sized enterprises.
Earlier than wanting on the reforms and what employers can do to arrange for them, let’s take into account the present preparations.
What’s the present SSP framework?
An worker should be an “eligible worker” and earn at the least the Decrease Earnings Restrict (LEL), which is at the moment £125 per week. Even when workers are eligible, SSP is payable solely from the fourth consecutive day of illness, as the primary three days are unpaid ready days.
It’s estimated that round 1.3 million workers obtain no SSP in any respect, and plenty of lose pay for less than quick durations when unwell. Some face the selection of working whereas in poor health or dropping earnings. This will unfold sickness within the office and cut back productiveness.
What’s altering from 6 April 2026?
Roughly 25% of workers solely obtain SSP (somewhat than contractual sick pay), and the SSP adjustments beneath can have a major affect.
- Elimination of the Decrease Earnings Restrict, and workers will not want to satisfy the LEL to qualify for SSP.
- A brand new earnings‑linked calculation and SSP can be paid at 80% of regular weekly earnings (NWE) except the SSP flat fee is decrease.
- SSP can be payable from day certainly one of illness absence, because the Employment Rights Act 2025 abolishes the three unpaid ready days.
- SSP will enhance from £118.75 to £123.25 per week on 6 April 2026.
It is very important point out atypical staff, akin to zero-hours and company staff, in addition to seasonal and irregular-hours workers. Establishing NWE shouldn’t be at all times simple due to their fluctuating pay and variable working patterns. Employers can decide NWE, for instance, by averaging pay over the earlier 8-12 weeks or by following the related contractual preparations to make sure SSP displays precise incomes patterns.
What do the SSP adjustments imply for employers?
The scope of SSP entitlements is considerably widened. In addition to administrative changes to replace insurance policies and payroll processes, the reforms carry a price implication for organisations of all sizes.
The Authorities estimates that eradicating ready days and abolishing the LEL, mixed with introducing the 80% earnings‑linked calculation, will enhance employer SSP prices by round £450 million a yr. Though a major sum, it equates to roughly £15 extra per worker in accordance with the Authorities’s affect evaluation. Crucially, earlier entry to SSP might enhance productiveness by permitting workers to remain residence when unwell with out feeling compelled to attend work.
Employer considerations about elevated illness absence may very well be mitigated by means of strengthened illness administration. This contains conducting return‑to‑work interviews promptly, even after quick durations of sickness, which can assist to determine underlying points early and cut back avoidable absences. It might probably additionally embrace structured return-to-work planning, phased returns, and non permanent changes.
How can employers put together for the adjustments?
- Replace payroll programs for earnings‑linked SSP and day‑one entitlement.
- Evaluate and replace illness absence insurance policies, contracts and worker handbooks and talk these adjustments to workers.
- Price range for elevated SSP.
- Establish roles or departments most affected by the broader eligibility guidelines.
- Prepare managers and HR on the brand new regime.
- Strengthen illness absence administration processes.
- Set up the variety of atypical staff and the way their regular weekly earnings are calculated.
Conclusion
The April 2026 SSP reforms symbolize a significant shift within the UK’s method to sick pay, increasing entry and enhancing monetary safety for workers. Whereas these adjustments introduce further prices and compliance necessities for employers, early preparation will assist a compliant and nicely‑managed transition.
By reviewing programs and insurance policies now, organisations can guarantee they’re prepared for the brand new SSP regime and are geared up to assist workers and handle illness absence successfully.
