Statutory Sick Pay (SSP) is changing from 6th April 2026, and employers are already preparing for what’s ahead. The reforms are the most significant in years, removing long-standing barriers and changing the way sick pay is calculated and processed through payroll.
In our latest blog, Tina Davies, Payroll Manager at Bevan Buckland, explains the key changes to Statutory Sick Pay and how they may affect you.
What’s Changing on 6th April 2026
The SSP system will undergo major shifts:
- Removal of the Lower Earnings Limit (LEL): At present, employees earning below the Lower Earnings Limit (£125 per week or £542 per month for 2025/26) are not entitled to SSP. From 6th April 2026, this threshold will be abolished, extending SSP eligibility to lower-paid, part-time and zero-hours contract workers.
- Removal of “Waiting Days”: Employees will be entitled to SSP from the first full day of sickness absence. Therefore, employees will no longer see the first three days of continuous sickness absence as being unpaid.
- New SSP Calculation: Rather than a flat rate (currently £118.75 per week), the rate will be 80% of average weekly earnings (AWE) or the SSP flat weekly rate.
- Compliance: From 6th April 2026, payroll systems must handle a new calculation method and wider eligibility.
Together, these reforms aim to make SSP more inclusive and fairer, particularly for lower-paid workers and individuals in roles where irregular earnings mean the current system offers very little financial support.
Transitional Protections
Until recently, it was not clear what would happen to employees who were already on sick leave before the 6th April and remained on sick leave on/after that date.
The Department for Work & Pensions (DWP) confirmed transitional protections for Statutory Sick Pay (SSP) in December 2025. The transitional protections were introduced to ensure employees already on continuous sick leave before 6th April 2026 do not experience a reduction in pay when the new SSP rules come into effect.
Key information regarding the transitional protections is as follows:
- Any employee earning below the LEL who is already on sick leave on or after 6th April 2026 will be eligible for SSP.
- Any employee serving waiting days on 6th April 2026 will receive SSP from that date onwards.
- Employees already receiving SSP before 6th April 2026 will be transitionally protected to prevent a reduction in their SSP rate. They will continue to receive the uprated flat rate until they return to work or their work contract ends.
- Employees earning between £125.00 and £154.05 per week will receive the flat rate of £123.25 during their continuous sickness absence if they were on sick leave and in receipt of SSP prior to 6th April 2026.
What this Means for Employers
While these changes are designed to improve fairness and access to SSP, they do introduce additional complexity for employers.
Therefore, we advise that prior to the upcoming changes, employers should begin to prepare by ensuring their payroll software systems will be updated for 80% vs flat rate calculation, and systems and HR policies no longer include “waiting days” for SSP.
Additionally, it is important to be transparent with your employees about these new changes before the 6th April 2026. This not only demonstrates compliance and good governance but also prevents misunderstandings amongst employees and ensures a smoother payroll operation.
How can we help
We understand that payroll is a critical function, especially with these SSP changes coming very soon. With over 100 years of experience, Bevan Buckland is committed to providing a hassle-free payroll service for businesses of all sizes. Our expert payroll team ensures accuracy, compliance, and efficiency, allowing you to focus on growing your business.
If you would like to learn more about our payroll services, please contact 01792 410100 or email us at mail@bevanbuckland.co.uk
