Changes to SSP entitlement for April 2026

The Employment Rights Act brings a major change to Statutory Sick Pay (SSP) from April 2026, which could have a significant impact on absence management and payroll processes for employers.

SSP from day one
With effect from 6th April 2026, SSP is payable from the first day of sickness absence, where previously employees would have only been eligible for SSP on the fourth consecutive day of illness.

Where employees might have previously pushed through minor illness, this new change could encourage employees to utilise sickness absence for longer periods.

It will likely also place an additional administrative burden on HR and payroll to ensure that absences are managed correctly.

Removal of the Lower Earnings Limit (LEL)
In addition, the LEL will be removed, meaning that all employees will qualify for SSP. Previously, employees were required to meet the LEL in order to be eligible for SSP, which for the 2025-2026 year was an average weekly earnings of at least £125 per week.

This change means that there is no longer a threshold for eligibility.

As a result, employers with lower-paid or more irregular-hours staff will see a significant increase in SSP costs, as these employees will now be able to utilise SSP.

New method of calculating SSP
The way in which SSP is calculated will also be changing, and from April 2026, SSP will either be based on the flat SSP rate (£123.25 per week as of April 2026) or 80% of the employee’s average weekly earnings, whichever is lower.

This means employers are likely to see greater variability in SSP payments, with payroll burdened with more complex payroll calculations.

How to prepare
In recognition of these changes, employers are advised to strengthen absence management processes and tracking, and to prepare the payroll systems accordingly.

If you are preparing for the April 2026 SSP changes, contact Solutions for HR for support with policy updates, documentation, and implementation.