SSP Changes 2026: What Employers Must Know About the New Sick Pay Rules

From April 2026, Statutory Sick Pay (SSP) rules are changing significantly. In this episode of the I Hate Numbers podcast, we break down what those changes mean, why they matter, and how employers can prepare. These updates are part of wider employment reforms and will impact businesses of all sizes, from private companies to social enterprises. :contentReference[oaicite:0]{index=0}What Is Changing with SSP?The new rules introduce two major shifts. First, the removal of the lower earnings limit (LEL). Second, the abolition of waiting days. Previously, employees earning below a certain threshold were not eligible for SSP. From April 2026, that barrier is removed. Every eligible employee, regardless of earnings, will qualify. At the same time, SSP will now be payable from day one of sickness rather than starting on the fourth day.More Employees, More CostThese changes will bring approximately 1.3 million additional workers into the SSP system. While this strengthens employee protection, it also increases financial pressure on employers. SSP is not reimbursed by the government. The cost sits entirely with the business.How SSP Will Be CalculatedThe calculation method is also changing. Employers must now pay the lower of:80% of the employee’s average weekly earningsA flat weekly rate (currently expected to be £123.25)This introduces additional complexity into payroll calculations and increases the need for accurate systems.The End of Waiting DaysThe removal of waiting days means SSP must be paid from the very first day of sickness. This increases both the administrative burden and the direct cost of short-term absences. It also raises important questions around workplace culture and sickness management.Linked Periods Still ApplyWhile many rules are changing, linked periods of sickness remain in place. If absences occur within a 56-day window, they are treated as a continuous period. This affects how SSP is calculated, as the original rate continues even if the employee’s earnings change during that period.Transitional RulesEmployees already receiving SSP before April 2026 will be subject to transitional protection. Those in specific earnings bands will move to the new flat rate for the remainder of their absence. This adds another layer of complexity for payroll and HR teams to manage.What Employers Should Do NowReview Payroll SystemsEnsure your payroll provider can handle the new 80% vs flat rate calculation, as well as transitional rules.Update PoliciesSickness policies and staff handbooks referencing waiting days must be updated before April 2026.Train Your TeamHR teams and managers must understand that SSP now applies from day one and includes lower-paid employees.Monitor Workplace TrendsIncreased coverage may influence absence patterns. Understanding your internal data will be critical.Key TakeawayThe SSP changes are not just a compliance update. They represent a shift in cost, administration, and employee support expectations. Planning ahead will help you stay compliant, manage costs, and maintain control of your business.Episode Timecodes00:00 – Introduction to SSP changes01:00 – Employment law reforms and context02:00 – Removal of the lower earnings limit03:00 – New SSP calculation rules04:00 – Removal of waiting days05:00 – Linked periods explained06:00 – Transitional protection rules07:00 – Practical steps for employers08:00 – Final thoughtsFurther Support📘 Book https://www.ihatenumbers.co.uk/i-hate-numbers-book/ 🎧 Podcast https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/ 🌐 Website https://www.ihatenumbers.co.uk If this episode helped you understand the upcoming SSP changes, share it with another employer who needs to prepare. Plan it. Do it. Profit.