From 6 April 2026, statutory sick pay (SSP) rules will change significantly under the Employment Rights Act. SSP will be available from day one of sickness absence, with no waiting days, and will apply to all eligible employees regardless of earnings. Payments will be set at 80% of average weekly earnings (AWE) or £123.25 per week, whichever is lower.
These changes create complications when sickness spans both the old and the new systems. HMRC has issued guidance to help employers manage these transitional cases.
A key date is 22 September 2025. Employees whose sickness began on or after this date may qualify for SSP from 6 April 2026, even if they were previously ineligible due to low earnings. This also applies if they had returned to work briefly between 22 September 2025 and 5 April 2026.
However, employees whose sickness started on or before 21 September 2025 and continued uninterrupted to 5 April 2026 will not qualify under the new rules. Entitlement will only restart after they return to work for at least eight weeks.
For employees already receiving SSP before 6 April 2026, the new rate applies from that date. If their AWE would result in a lower payment, the flat rate will be used instead.
Employers must also check ongoing eligibility, particularly where employees have recently received employment and support allowance, which may affect entitlement.
With these changes approaching, it is important to review current absences, update payroll processes and ensure policies reflect the new day-one entitlement.
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