From April 2026, Statutory Sick Pay (SSP) rules are changing significantly. In this episode of the I Hate Numbers podcast, we break down what those changes mean, why they matter, and how employers can prepare.
These updates are part of wider employment reforms and will impact businesses of all sizes, from private companies to social enterprises. :contentReference[oaicite:0]{index=0}
What Is Changing with SSP?
The new rules introduce two major shifts. First, the removal of the lower earnings limit (LEL). Second, the abolition of waiting days.
Previously, employees earning below a certain threshold were not eligible for SSP. From April 2026, that barrier is removed. Every eligible employee, regardless of earnings, will qualify.
At the same time, SSP will now be payable from day one of sickness rather than starting on the fourth day.
More Employees, More Cost
These changes will bring approximately 1.3 million additional workers into the SSP system. While this strengthens employee protection, it also increases financial pressure on employers.
SSP is not reimbursed by the government. The cost sits entirely with the business.
How SSP Will Be Calculated
The calculation method is also changing. Employers must now pay the lower of:
- 80% of the employee’s average weekly earnings
- A flat weekly rate (currently expected to be £123.25)
This introduces additional complexity into payroll calculations and increases the need for accurate systems.
The End of Waiting Days
The removal of waiting days means SSP must be paid from the very first day of sickness. This increases both the administrative burden and the direct cost of short-term absences.
It also raises important questions around workplace culture and sickness management.
Linked Periods Still Apply
While many rules are changing, linked periods of sickness remain in place. If absences occur within a 56-day window, they are treated as a continuous period.
This affects how SSP is calculated, as the original rate continues even if the employee’s earnings change during that period.
Transitional Rules
Employees already receiving SSP before April 2026 will be subject to transitional protection. Those in specific earnings bands will move to the new flat rate for the remainder of their absence.
This adds another layer of complexity for payroll and HR teams to manage.
What Employers Should Do Now
Review Payroll Systems
Ensure your payroll provider can handle the new 80% vs flat rate calculation, as well as transitional rules.
Update Policies
Sickness policies and staff handbooks referencing waiting days must be updated before April 2026.
Train Your Team
HR teams and managers must understand that SSP now applies from day one and includes lower-paid employees.
Monitor Workplace Trends
Increased coverage may influence absence patterns. Understanding your internal data will be critical.
Key Takeaway
The SSP changes are not just a compliance update. They represent a shift in cost, administration, and employee support expectations.
Planning ahead will help you stay compliant, manage costs, and maintain control of your business.
Episode Timecodes
- 00:00 – Introduction to SSP changes
- 01:00 – Employment law reforms and context
- 02:00 – Removal of the lower earnings limit
- 03:00 – New SSP calculation rules
- 04:00 – Removal of waiting days
- 05:00 – Linked periods explained
- 06:00 – Transitional protection rules
- 07:00 – Practical steps for employers
- 08:00 – Final thoughts
Further Support
📘 Book
https://www.ihatenumbers.co.uk/i-hate-numbers-book/
🎧 Podcast
https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/
🌐 Website
https://www.ihatenumbers.co.uk
If this episode helped you understand the upcoming SSP changes, share it with another employer who needs to prepare.
Plan it. Do it. Profit.