1 June 2026 · 5 min read · 360 Accounts & Bookkeeping Ltd
Already in force: From 6 April 2026, the rules around Statutory Sick Pay changed significantly. Employees now get sick pay from day one, more workers qualify than ever before, and the way SSP is calculated has also changed. If you employ anyone, you need to know about this.
Statutory Sick Pay has been part of the UK employment landscape for decades, but for most of that time the rules have stayed pretty static. That changed in April 2026 with the biggest shake-up to SSP in years — and for small business owners, the impact is real.
Here's what's changed, what it costs, and what you need to do to stay on the right side of HMRC and the new Fair Work Agency.
What is Statutory Sick Pay?
Statutory Sick Pay (SSP) is the minimum amount employers must pay eligible employees when they are off sick. It's a legal obligation — not optional. You pay it through your payroll in the same way as normal wages, and you can no longer reclaim it from HMRC.
Before April 2026, SSP only kicked in from day four of an absence. The first three days — known as "waiting days" — were unpaid. That's now gone.
What changed from 6 April 2026?
- No more waiting days. SSP is now payable from the very first day of sickness absence. Previously, the first three days were unpaid — that rule is gone.
- The Lower Earnings Limit has been scrapped. Before April 2026, employees had to earn at least £125 per week to qualify for SSP. That threshold no longer exists — all employees qualify regardless of how much they earn.
- SSP is now earnings-linked for lower-paid workers. The weekly rate is £123.25 — but for employees whose average weekly earnings are below that, SSP is paid at 80% of their average weekly earnings instead.
| Rule | Before April 2026 | From April 2026 |
|---|---|---|
| When SSP starts | Day 4 of absence | Day 1 of absence |
| Earnings threshold | Must earn £125+/week | No threshold — all qualify |
| Weekly SSP rate | £118.75 (flat rate) | £123.25 or 80% of earnings |
| Maximum payment period | 28 weeks | 28 weeks (unchanged) |
What does this cost employers?
The government estimates these changes will increase employer SSP costs by around £450 million per year across the UK. On a per-employee basis that works out at roughly £15 more per employee annually — but that average masks the real impact on small businesses with high levels of short-term absence.
The real cost: The waiting days rule meant that absences of three days or fewer cost employers nothing in SSP. That's no longer the case. A one-day absence now triggers SSP. For businesses with staff who have frequent short-term sickness, the cumulative cost will be significantly higher than the average figure suggests.
How do you calculate SSP now?
If the employee earns £123.25 or more per week on average:
Pay the standard rate of £123.25 per week (£17.61 per qualifying day).
If the employee earns less than £123.25 per week on average:
Pay 80% of their average weekly earnings, divided by the number of qualifying days in their working week.
SSP is only paid on qualifying days — the days the employee is contracted to work. Weekends, bank holidays, and non-working days don't count unless the employee normally works them.
The new Fair Work Agency — why this matters
From April 2026, a new body — the Fair Work Agency — has enforcement powers over SSP. Previously, SSP disputes were largely dealt with through employment tribunals. The Fair Work Agency can now investigate SSP underpayments directly and take action against employers who fail to pay correctly.
Bottom line: Getting SSP wrong is no longer just an employment tribunal risk — it's a regulatory compliance issue. Keep your records clean and your payroll up to date.
What do you need to do now?
- Update your payroll software. Make sure it's calculating SSP from day one and using the new earnings-linked rate for lower-paid staff.
- Review who now qualifies. If you have part-time or lower-paid employees who previously didn't meet the earnings threshold, they now qualify for SSP.
- Update your absence policy. Your employee handbook should reflect the new day-one entitlement. If your policy still references waiting days, update it now.
- Train your managers. They need to know that sickness must be recorded from day one and that SSP is triggered immediately.
- Keep clear records. Log every absence from day one, including the dates, the reason, and the SSP paid. The Fair Work Agency can request these records.
Not sure if your payroll is set up correctly?
We help employers across the UK stay on top of payroll changes like this — so you're not caught out by rules that changed quietly in April. Get in touch and we'll check your setup.
Get in touch → [www.360accounts.net](https://www.360accounts.net)
360 Accounts & Bookkeeping Ltd · [www.360accounts.net](https://www.360accounts.net)
Sources: HMRC SSP Guidance April 2026 | GOV.UK Employment Rights Act 2025 | Fair Work Agency, April 2026