Significant reforms to Statutory Sick Pay (SSP) will come into effect on 6 April 2026 under the Employment Rights Act 2025. These changes, published through official UK Government sources, aim to broaden SSP eligibility, modernise calculations, and improve early access to financial support for workers.
This report summarises:
- Removal of SSP waiting days
- New SSP calculation rules
- Transitional arrangements
- Existing Linked Sickness rules
- SSP non-entitlement and SSP1 forms
1. Removal of SSP Waiting Days
Under current rules, SSP is only payable from the fourth qualifying day of sickness, as the first three days are unpaid waiting days.
From 6 April 2026, waiting days will be abolished, and SSP will be paid from the first full day of sickness absence.
The Government states that this supports workers’ ability to recover without financial pressure and reduces the spread of illness in workplaces.
2. New SSP Calculation Rules
Removal of the Lower Earnings Limit (LEL)
Currently, employees must earn at least £125 per week to qualify for SSP.
From April 2026, the Lower Earnings Limit will be removed, and all employees – regardless of earnings – will qualify for SSP. Instead, the employee’s SSP entitlement will be based on their Average Weekly Earnings, which is calculated on the 8 weeks of earnings immediately before the first day of sickness. This, of course, would include bonuses, commissions and overtime payments.
From April 2026, SSP will be paid at the lower of either:
- 80% of the employee’s average weekly earnings (AWE), OR;
- The statutory flat weekly rate of £123.25 (£24.65 a day for a 5 day a week working pattern)
3. Transitional Protections from 6 April 2026
Employees already on sick leave during the transition will not have payments reduced mid-absence.
Employees serving waiting days on 6 April 2026 will begin receiving SSP immediately and employees previously ineligible due to the LEL will qualify, if still off sick on or after 6 April 2026.
These protections ensure continuity and fairness during the changeover.
4. Employer Responsibilities
Employers are advised to:
- Review and revise internal policies on sickness absence.
- Communicate updates clearly to employees.
- Prepare for increased SSP related costs.
If Hazlewoods manages your payroll, simply record all employee absences on your pay template from the very first day of sickness. This ensures we can accurately assess eligibility and process Statutory Sick Pay (SSP).
5. Linked Sickness
Although the SSP system is being modernised from 6 April 2026, the rules around linked periods of sickness remain unchanged.
Two or more periods of sickness are considered linked if the gap between the periods is 8 weeks (56 days) or less.
When these conditions are met, the sickness absences must be treated as one continuous period for SSP purposes.
The total maximum SSP an employee can receive remains at 28 weeks. If it is a linked period of sickness the 28 week window continues rather than resetting.
6. SSP1 forms
The SSP1 form is an official Department for Work and Pensions (DWP) document that employers must provide when an employee cannot receive Statutory Sick Pay (SSP) or when their SSP entitlement is coming to an end. The form enables the employee to claim alternative state benefits, once SSP is unavailable.
- Employers must issue an SSP1 form in the following circumstances:
- The employee’s SSP is ending because the 28-week maximum is reached
- The employer requests confirmation of the employee’s sickness and this was not provided
- The employee has not started working for the employer yet
- The employee’s contract of employment has or will be ending
- The employee was in legal custody whilst on sickness leave
Conclusion
The SSP reforms taking effect on 6 April 2026 are a substantial change from the current SSP system and calculations. By removing waiting days, eliminating earnings thresholds, and linking payments to actual earnings (with a cap), the Government aims to create a fairer, more accessible system. Employers must ensure systems, policies, and communication practices are updated well ahead of implementation.
