The statutory sick pay changes 2026 represent the most substantial reworking of the scheme since it was introduced in 1983. Some employers have felt little difference, while others, particularly those with part-time or low-paid teams, are still adjusting to what their absence costs now look like.
Tracking reform of this kind so that clients do not have to is a central part of the service at GAP HR. Through the winter and spring, we updated handbooks, briefed the businesses we support, and dealt with a steady flow of questions from owner-managers wanting to understand what the statutory sick pay changes 2026 meant for them.
Call us now on 01491 598 600 or Click Here to Make An Enquiry and we will be delighted to help you.
What Are The Statutory Sick Pay Changes 2026?
There were three principal changes, namely:
- The three unpaid waiting days were removed, so SSP is now payable from the first qualifying day of absence rather than the fourth.
- The lower earnings limit was abolished, ending the exclusion of anyone earning under £125 a week.
- The payment itself was restructured. Instead of a single flat rate for everybody, an employee now receives the lower of the flat rate or 80% of their normal weekly earnings.
The changes were confirmed by the Employment Rights Act 2025 (Commencement No. 3 and Transitional Provisions) Regulations 2026.
Why Did The Employment Rights Act 2025 Change Statutory Sick Pay?
The previous scheme left significant gaps in the SSP regime. An estimated 1.3 million low-paid workers earned too little to qualify for SSP at all, and around a quarter of employees had nothing but SSP to fall back on when ill, which meant no income at all for the first three days of any absence. One consequence was that many people continued to attend work while unwell because they could not afford to be absent.
The Employment Rights Act 2025 was designed partly to address those gaps. When ACAS surveyed employers and workers, both groups identified payment from the first day of sickness as the change that would make the greatest difference. Following the reforms, coverage is wider, payment begins sooner, and the 80% mechanism prevents sick pay from exceeding what a low earner would actually have received for working.
Who Is Entitled To Statutory Sick Pay?
Part-time staff below the old threshold now qualify for statutory sick pay, as do casual and variable-hours workers whose averaged earnings previously fell short. In addition, employees whose absences were always too brief to outlast the three waiting days are now eligible for SSP, which in practice covered a large proportion of routine short-term illness.
For a business built around short shifts and modest hours, such as a café, a shop, or a club with a weekend workforce, the proportion of staff entitled to SSP may have increased considerably overnight.
What Does This Mean For Costs And Absence Patterns?
Payment from the first day changes the economics of short absence. Under the old scheme, a two-day illness cost the employer nothing in SSP; it is now payable, and there remains no mechanism for recovering any of it from the government. Employers with larger part-time workforces are carrying the greatest increase, both because more staff qualify and because short absences are the most common kind. Recorded absence is also likely to rise, some of which will be genuine illness that previously went unreported because it was unpaid. As a result, budgets that were set before the new regime came into force should be revisited.
What Do Employers Need To Update?
The first thing employers need to update is payroll. Systems must calculate 80% of normal weekly earnings accurately and apply the cap on an individual basis, which is a live risk for anyone with variable-hours staff. The paperwork comes next, with absence policies, handbooks, and offer documents that still refer to waiting days or the old earnings threshold needing considerable amendment.
Training your staff on the changes is also imperative. Managers are usually the first people asked what someone will be paid, so ensuring they understand the new rules should be a priority. It is also sensible to monitor your absence figures over the coming year, so that any change in patterns is identified and addressed early.
How Can GAP HR Help You With The Statutory Sick Pay Changes 2026?
At GAP HR, our specialist consultants can help you with all aspects of the new statutory sick pay regime. We can review your policies against the new scheme, resolve any straddling absences that remain in question, and help you consider what the revised costs mean for the way you manage attendance. Where wording needs rewriting, we will rewrite it for you.
Call us now on 01491 598 600 or Click Here to Make An Enquiry and we will be delighted to help you.
