Statutory Sick Pay Changes from April 2026

Proposed reforms to Statutory Sick Pay are due to take effect from April 2026 as part of the wider Employment Rights Act agenda. While the full detail has yet to be confirmed, the direction of travel is clear and employers, particularly those engaging casual and variable-hours workers, are already beginning to ask how the changes will affect them in practice.

At present, Statutory Sick Pay is only payable to employees who meet specific eligibility criteria, including a minimum earnings threshold. The planned reforms are intended to broaden access to sick pay and ensure that workers are not financially penalised for being unwell. As a result, employers should expect Statutory Sick Pay to apply more widely than it does now.

What Changes Are Being Proposed to Statutory Sick Pay?

The most significant proposed change is the removal of the Lower Earnings Limit for Statutory Sick Pay. This would mean that employees would no longer be excluded from SSP simply because they earn below the current weekly threshold. In addition, Statutory Sick Pay is expected to become payable from the first day of sickness absence, rather than after three waiting days. Taken together, these changes represent a fundamental shift in how sickness absence is treated under employment law.

How the New SSP Rules Could Affect Employers with Casual Workers

For employers who rely on casual, seasonal or irregular workforces, this raises understandable concerns. Many businesses currently operate on the basis that casual workers either do not qualify for SSP or rarely trigger eligibility. Under the new framework, far more workers are likely to qualify, potentially increasing both cost and administrative responsibility.

What We Still Don’t Know About SSP from April 2026

However, there remains a lack of clarity around how Statutory Sick Pay will be calculated for workers with no guaranteed hours or fluctuating pay. It is not yet known what reference period will apply, how entitlement will work where no work was scheduled, or how short-term engagements will be treated. These details will be critical, particularly in sectors such as hospitality, care, logistics and retail, where flexible working arrangements are common.

Until draft regulations and statutory guidance are published, employers should be cautious about making assumptions. What can be said with confidence is that Statutory Sick Pay under the Employment Rights Act will apply more broadly, will be triggered more quickly, and will require closer attention to sickness absence management across all categories of employee.

Why SSP Reform Is Not Just a Payroll Issue

This is not simply a payroll issue. The changes are likely to have wider implications for employment contracts, workforce planning and attendance management procedures. Employers may also find that sickness absence becomes more visible in parts of the workforce where it was previously unmanaged or informally handled.

When Should Employers Start Preparing for SSP Changes?

While April 2026 may feel some distance away, the lead-in time for these reforms is deliberate. Employers are expected to use this period to review how they engage workers, ensure that employment status is clear, and prepare for a more inclusive statutory sick pay regime.

As further details emerge, it will become possible to provide more precise guidance on compliance and implementation. For now, employers should focus on understanding the intent behind the reforms and assessing how exposed their current workforce model may be to increased Statutory Sick Pay obligations.

Employer Checklist: Preparing for the New Statutory Sick Pay Rules

Review your workforce structure to understand how many employees currently fall below the Statutory Sick Pay earnings threshold and would become newly eligible under the proposed rules.

Assess the proportion of casual, zero-hours or variable-hours workers within the business and consider how sickness absence is currently recorded and managed for these individuals.

Examine existing employment contracts to ensure employment status is clearly defined and accurately reflects working arrangements, particularly for casual staff.

Review sickness absence policies to confirm they align with the principle of Statutory Sick Pay being payable from day one and that reporting procedures are clear and consistently applied.

Engage payroll providers or internal payroll teams early to understand how Statutory Sick Pay calculations may change once new regulations are issued.

Factor potential increases in Statutory Sick Pay costs into future budgeting and workforce planning, particularly in sectors with high staff turnover or seasonal demand.

Ensure managers are trained to handle sickness absence conversations confidently and lawfully, especially where attendance concerns arise within casual or flexible workforces.

Monitor government announcements and guidance relating to the Employment Rights Act and Statutory Sick Pay, and seek advice before implementing any changes based on assumptions.