SSP Changes April 2026: Day-One Pay, No Earnings Floor, New Rate
Everything employers need to know about SSP changes from April 2026. Day-one SSP, no earnings floor, £123.25/week rate, and cost impact analysis.
Overview of SSP Changes
From 6 April 2026, Statutory Sick Pay (SSP) in the UK has undergone its most significant reform in decades. The changes, introduced through the Employment Rights Act, affect every UK employer. Here is everything you need to know about the new rules and how to prepare your payroll and absence management processes.
Use our SSP calculator to model the cost impact for your business using the new 2026/27 rates.
The Three Key Changes
1. SSP from Day One (No More Waiting Days)
Before: The first 3 qualifying days of sickness were "waiting days" and unpaid. SSP only started from the 4th qualifying day. An employee off sick for 3 days or fewer received nothing.
Now: SSP is payable from the first qualifying day of sickness. There are no waiting days. Even a single sick day now attracts SSP.
This is the change with the biggest cost impact for most employers, particularly those with high rates of short-term absence. Previously, absences of 1–3 days cost nothing in SSP. Now every sick day has a direct cost.
2. No Lower Earnings Limit (All Employees Qualify)
Before: Employees had to earn at least £125 per week (the Lower Earnings Limit) to qualify for SSP. Workers below this threshold — typically part-time or zero-hours staff — received nothing during sickness.
Now: The earnings threshold has been completely removed. All employees qualify for SSP regardless of their earnings level. This brings an estimated 1.3 million additional workers into SSP eligibility.
For lower-paid workers earning less than £123.25 per week, SSP is paid at 80% of their average weekly earnings rather than the flat rate. This prevents employees from receiving more in SSP than they would normally earn.
3. New Rate: £123.25 per Week
The SSP flat rate has increased from £118.75 to £123.25 per week. For a standard 5-day worker, the daily rate is £24.65 (up from £23.75).
The maximum duration remains 28 weeks, meaning the maximum SSP cost per absence is now £3,451.00 (up from £3,253.75 under the old rules with waiting days).
Before and After: Cost Comparison
The table below shows the SSP cost for a standard 5-day worker under the old and new rules:
| Absence | Old Rules (2025/26) | New Rules (2026/27) | Increase |
|---|---|---|---|
| 1 day | £0.00 | £24.65 | +£24.65 |
| 3 days | £0.00 | £73.95 | +£73.95 |
| 1 week (5 days) | £47.50 | £123.25 | +£75.75 |
| 2 weeks (10 days) | £166.25 | £246.50 | +£80.25 |
| 4 weeks (20 days) | £403.75 | £493.00 | +£89.25 |
| 13 weeks (65 days) | £1,472.50 | £1,602.25 | +£129.75 |
| 28 weeks (140 days) | £3,253.75 | £3,451.00 | +£197.25 |
Based on a standard 5-day working week. Old rules include 3 unpaid waiting days at £23.75/day. New rules have no waiting days at £24.65/day.
Impact on Different Types of Employer
Small Businesses (1–10 Employees)
The impact depends heavily on your absence rates. If your team rarely takes sick days, the change is minimal. But if you have even one employee who takes 10–15 short-term sick days per year, your SSP costs will be noticeably higher. Previously those 1–2 day absences cost nothing; now each day costs £24.65.
If you employ part-time staff who previously fell below the £125/week earnings limit, they now qualify for SSP too. Budget accordingly.
Medium Businesses (10–50 Employees)
With more employees, the aggregate impact of day-one SSP becomes more significant. If your average sickness absence is 5.7 days per employee per year (the UK average), a 30-person company will pay approximately £4,200 more in SSP annually compared to the old rules. Review your absence data and adjust your budget.
Large Businesses and Sectors with High Absence
Sectors with above-average sickness rates — healthcare, social care, education, hospitality — will see the largest cost increase. The combination of day-one SSP and universal eligibility could significantly impact payroll costs. Consider whether your absence management procedures need tightening.
The 80% Earnings Cap: How It Works
The new 80% cap prevents low earners from receiving more in SSP than they normally earn. Here is how it works in practice:
| Weekly Earnings | 80% of Earnings | SSP Flat Rate | Actual SSP Paid |
|---|---|---|---|
| £80 | £64.00 | £123.25 | £64.00 (80% cap) |
| £100 | £80.00 | £123.25 | £80.00 (80% cap) |
| £123.25 | £98.60 | £123.25 | £98.60 (80% cap) |
| £154.06+ | £123.25+ | £123.25 | £123.25 (flat rate) |
The breakeven point is £154.06 per week. Employees earning above this receive the full flat rate of £123.25. Those earning below receive 80% of their average weekly earnings.
What Employers Need to Do
1. Update Your Payroll Software
Most payroll providers will have updated their systems automatically. Verify that your software reflects the new £123.25 rate, zero waiting days, and no earnings threshold. If you calculate SSP manually, update your processes immediately.
2. Review Your Absence Policy
With SSP payable from day one, your absence reporting and management procedures become more important. Consider:
- How employees report single-day absences
- Whether your trigger points for absence reviews need adjusting
- How you track and record short-term absences for SSP purposes
3. Update Your Budget
Review your sickness absence data from the past 12 months and recalculate your expected SSP costs under the new rules. Pay particular attention to the number of 1–3 day absences, as these previously cost nothing in SSP.
4. Communicate with Employees
Employees should know that SSP now starts from day one. This may reduce presenteeism (coming to work while ill) as employees know they will be paid from the first sick day. Update your staff handbook and absence policy documentation.
5. Review Enhanced Sick Pay Schemes
If you offer company sick pay above SSP, check whether your policy wording needs updating. Policies that reference "after the 3 waiting days" or "from the 4th day of absence" will need revising.
Record-Keeping Requirements
Employers must keep SSP records for at least 3 years. From April 2026, the new Fair Work Agency has enforcement powers over SSP compliance, making accurate record-keeping more important than ever. Records should include:
- Dates of all sickness absences (including single-day absences)
- Qualifying days in each period
- SSP amounts calculated and paid
- Employee earnings data used for 80% cap calculations
- Any reasons SSP was not paid
Linking Periods of Sickness
The rules on linked periods remain unchanged. If an employee has two periods of sickness separated by 8 weeks or fewer, they are linked and treated as one period for the purposes of the 28-week maximum. Since there are no longer any waiting days, linking primarily affects the tracking of the 28-week entitlement limit.
Key Takeaways
- SSP is payable from day one of sickness — no more 3 waiting days
- All employees qualify regardless of earnings (no £125/week threshold)
- Rate is £123.25/week or 80% of earnings, whichever is lower
- Maximum duration remains 28 weeks
- Short-term absences now cost employers more than before
- Update payroll, absence policies, and budgets
- The Fair Work Agency can enforce SSP compliance
Calculate your exact SSP costs under the new rules with our SSP calculator, or see SSP in the context of your total employment costs with our employee cost calculator.