How will the SSP changes impact your business?

Employers across the UK need to be ready, because major reforms to the rules around Statutory Sick Pay (SSP) are on the way. The upcoming changes will reshape how sick pay works for many staff, and that means many businesses, particularly SMEs, will need to revisit payroll, absence and HR policies.

What is changing, SSP reforms from April 2026

Under the new rules expected from April 2026:

The current waiting days will be removed. At present, employees must be off work for four consecutive days before SSP is paid. Under the new rules, SSP will be payable from day one of sickness absence.
The lower earnings threshold will be scrapped. This means all employees, including part time and lower paid workers, will be entitled to SSP.
SSP will be calculated as the lower of 80 percent of average weekly earnings or the statutory flat rate, which is currently £118.75 per week.
Enforcement of SSP will move under a new Fair Work Agency, meaning stronger oversight and a greater focus on employer compliance.

In simple terms, SSP will become more accessible and more generous for workers, and that brings new responsibilities for employers.

What this means for businesses

For employers, these reforms come with several important practical and financial implications.

Increased cost pressure 
With SSP payable from day one and extending to all workers, including lower earners and part time staff, businesses should expect an increase in short term sick pay costs. This could be particularly noticeable in sectors where short absences are common.

More administration 
Payroll and HR systems will need updating. Processes for reporting sickness, calculating SSP and tracking absences will all change. Company handbooks, absence policies and employment contracts should also be reviewed well ahead of April 2026.

Wider eligibility means wider risk 
Where previously only certain employees qualified for SSP, now everyone will. This introduces more unpredictability, particularly for businesses with a large number of part time, casual or lower paid workers.

Positive impact on staff wellbeing 
Better access to sick pay can reduce the pressure on employees to work while unwell. This can lead to improved wellbeing, better morale, reduced long term absence and stronger staff retention.

Clear communication becomes critical 
With SSP rights changing, employees will need a clear understanding of what they are entitled to and how sickness should be reported. Confusion in this area creates risk for both employers and employees.

What you should be doing now

There is still time to prepare, but early action will make the transition far smoother.

Audit your payroll and HR systems now 
Check whether your current systems or provider can handle day one SSP, wider eligibility and the revised calculation method.

Review employment contracts and staff handbooks 
Make sure all documentation reflects the new SSP rules, especially for part time, zero hours or casual staff.

Train payroll and HR teams 
Those responsible for processing SSP will need to understand how day one sickness works, how payments will be calculated and how different worker types are affected.

Communicate clearly with employees 
Let your workforce know what is changing, when it is happening and what it means for them. This is particularly important for staff who previously did not qualify for SSP.

Plan for the financial impact 
More frequent short term absences can affect cash flow and productivity. Building this into future budgets now will help avoid surprises later.

What this means for your payroll provider

These SSP changes highlight just how important it is for payroll to stay compliant with evolving legislation. A reliable payroll partner will already be preparing systems for April 2026, ensuring calculations, reporting and compliance are handled correctly without disruption.

For many businesses, this is also a timely reminder to review whether their current payroll support is robust enough to handle increased complexity.