Statutory Sick Pay (SSP) will become more accessible in the new tax year as waiting periods are reduced and barriers removed for lower-paid employees.
From 6 April 2026, over one million more low paid employees will qualify for SSP and all eligible employees will be paid from their first full day of sickness absence, not from day four.
HMRC have stated that agents should be aware of the changes and important dates which will be in new guidance to be released shortly.
These important changes, detailed below, have been introduced by the Employment Rights Act 2025.
Removal of the Lower Earnings Limit
Eligible employees will be able to get SSP regardless of income. SSP will be paid at 80% of normal weekly earnings or the uprated weekly flat rate of £123.25, whichever is lower.
Removal of the waiting period
SSP will be paid from the first full day of sickness absence, not from day four as previously.
Absences that start before 6 April 2026 will follow the current system to determine eligibility and payment. Absences that start on or after 6 April 2026 will use the new rules, unless otherwise outlined in legislation. These changes apply across the United Kingdom, including Northern Ireland.
HMRC states that agents should explain to anyone that may ask them about the changes that employers are responsible for operating SSP and ensuring their payroll systems are updated. HMRC has already shared technical guidance, including on transitional protections, with software developers and payroll providers to support preparation.
Guidance on SSP for employers and employees will be updated in due course.
If customers have detailed questions about SSP policy changes, they can send them to SSP.Team@DWP.gov.uk
The Employment Rights Act
Changes introduced by the Employment Rights Act 2025 from April 2026 include:
- Day-one family leave - employees entitled to Paternity Leave and Unpaid Parental Leave from the first day in a new job.
- Bereaved Partner's Paternity Leave – a new right to time off following the death of a child's mother or primary adopter.
- Collective redundancy protections – an increase to the protective award for non-compliance.
- Whistleblowing protections - stronger protections for workers who report sexual harassment.
- Simpler enforcement through the Fair Work Agency - a new body to uphold workers' rights and support businesses with compliance.
Wider guidance on the Employment Rights Act measures is available on the Government’s business guidance website.