The Government has finally published regulations which confirm that the anticipated changes to Statutory Sick Pay (“SSP”) under the Employment Rights Act 2025 will come into force on 6 April 2026.
The regulations confirm that the following changes will be in force from 6 April 2026:
- The three waiting days are being removed. SSP will become payable from the first full day of sickness absence, provided it is a qualifying day.
- The lower earnings limit will be removed. All eligible workers, regardless of earnings, will be entitled to SSP.
- The amount of SSP payable will be either the new statutory flat rate (£123.25 per week) or 80% of the employee’s normal weekly earnings, whichever is the lowest.
Transitional provisions
The regulations have also set out transitional provisions which cover:
- Where employees are serving waiting days before 6 April 2026.
- Where employees have normal weekly earnings between £125 and £154.05 before 6 April 2026 (and therefore could receive a reduction in SSP under the new rules).
- Where employees were earning below the lower earnings limit before 6 April 2026.
Let’s explore these transitional provisions in more detail:
What happens if an employee is serving waiting days on 6 April 2026?
If an employee’s sickness absence has just started and they would have had waiting days under the old rules, those waiting days no longer apply from 6 April 2026. However, SSP will not be payable for the waiting days before 6 April 2026.
What happens to employees who are already receiving SSP before 6 April 2026, but have they normal weekly earnings between £125 and £154.05? Which rate of SSP should they receive?
Employees already receiving SSP before 6 April 2026 should be paid the new SSP rate from 6 April 2026. However, the Government acknowledges that if an employee was already off sick before 6 April 2026 and their average weekly earnings mean that their SSP rate would reduce under the new rules, they will have a protected period in which they can be paid the new flat rate. This is so that they do not suddenly receive a lower rate of SSP for an ongoing period of absence.
This applies to an employee if they:
- have normal weekly earnings of between £125 and £154.05 per week; and
- were receiving SSP before 6 April 2026, and are still off sick on that date.
In these circumstances, the employee will be eligible for SSP in respect of any part of their period of entitlement which falls on or after 6 April 2026 (this is known as the "protection period") at the new flat rate of £123.25.
This transitional protection ends when the employee returns to work or their SSP entitlement ends. If the employee returns to work after 6 April 2026 and later goes off sick again, the new rate of SSP would apply to the second absence, even if that absence is linked.
What happens to employees who started sickness absence before 6 April 2026, but were not entitled to SSP due to earning below the Lower Earnings Limit? Will they be entitled to SSP from 6 April?
Employees who started their sickness absence before 6 April 2026 but were not entitled to SSP due to earning below the Lower Earnings Limit will be entitled to SSP from 6 April, based on their normal weekly earnings before the start of their sickness absence.
Where an employee goes off sick within eight weeks of a previous sickness absence and for that previous absence they were calculated as earning below the Lower Earnings Limit (so not entitled to SSP before 6 April 2026), their normal weekly earnings should still be calculated with reference to their first linked period of incapacity from work.
To stop employees who have been off sick for an extended period of time suddenly becoming eligible for SSP, an employee who, on 6 April 2026, had a continuous sickness absence starting before 22 September 2025 will not be eligible for SSP from 6 April 2026.
The Government has set out further guidance on the transitional provisions, this can be found here.
What do employers need to do before 6 April 2026?
- Update sickness absence policies and contracts of employment to reflect the new SSP rules; and
- Check that payroll departments and/or payroll providers are prepared for the changes.
We have published an article with details on the other upcoming changes taking effect in April 2026, please find this here Employment Rights Act 2025: Key Changes for April 2026 | Howes Percival
Matthew Potter comments:
As anticipated, the new changes to SSP will take effect on 6 April 2026, alongside a number of other employment law changes. We would recommend that Employers amend their policies and procedures promptly, to ensure that they reflect the changes coming into force.
If you have any questions on any of the upcoming changes or need help with reviewing and updating your policies or contracts of employment, please contact a member of the team here.
The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.
