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 Cost

These 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 Calculated

The calculation method is also changing. Employers must now pay the lower of:

1. 80% of the employee’s average weekly earnings
2. A 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 Days

The 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 Apply

While 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 Rules

Employees 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 Now

Review Payroll Systems

Ensure your payroll provider can handle the new 80% vs flat rate calculation, as well as transitional rules.

Update Policies

Sickness policies and staff handbooks referencing waiting days must be updated before April 2026.

Train Your Team

HR teams and managers must understand that SSP now applies from day one and includes lower-paid employees.

Monitor Workplace Trends

Increased coverage may influence absence patterns. Understanding your internal data will be critical.

Key Takeaway

The 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 Timecodes

1. 00:00 – Introduction to SSP changes
2. 01:00 – Employment law reforms and context
3. 02:00 – Removal of the lower earnings limit
4. 03:00 – New SSP calculation rules
5. 04:00 – Removal of waiting days
6. 05:00 – Linked periods explained
7. 06:00 – Transitional protection rules
8. 07:00 – Practical steps for employers
9. 08:00 – Final thoughts

Further Support

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On this week’s, I Hate Numbers, I'm going to be talking about a massive shift in the landscape of UK employment law. Just when you thought everything was under control, no changes you thought, well, that's not the case. From the 6th of April, 2026, there is going to be a massive change in how statutory sick pay SSP is dealt with.

So if you're an employer, whether that's for a private company, not-for-profit or social enterprise, this is going to affect you. I will be looking at the overhaul, how the rules work, share some numbers with you and suggest options and action points thereafter. Now, even though the Employment Rights Act, which governs all of this is already law, the practical reality will hit your business from the 6th of April 26th onwards.

Let's firstly set the stage. Now, the act is being delivered in phases to prevent businesses from being overwhelmed by too much change at once. Well, we’ve heard that before. Now, along with the SSP changes, we're also seeing the launch of a new body called the Fair Work Agency. Now, this body is designed to bring all employment rights, enforcement, into one place.

That's going to mean that compliance is not just a box ticking exercise. It should never have been that anyway. It's a fundamental part of your business's risk management. Now ministers are still fine tuning the details through the Make Work Pay initiative. There are ongoing consultations to make sure the rules remain functional for both workers and businesses.

So, keep in touch with your accountant. Keep an eye on the business.gov.uk website for the latest timelines. Staying informed now is going to present a challenge with everything else that's going on, but you need to stay in touch to understand how it's going to affect you. Now, the first major pillar of this reform is the removal of something called the lower earnings limit, sometimes called the LEL.

Now, under current regulations, if your staff earn below a certain threshold, they just simply don't qualify for sick pay. From April 26th, that barrier is being kicked into touch and it's being completely demolished. Every eligible employee will be entitled to SSP irrespective of how much their weekly or monthly income is.

Now, some experts predict this change is going to bring 1.3 million more workers into the SSP system. Many of these are likely to be part-time or lower-paid team members who previously had no safety net. It's a bit of a double-edged sword, isn't it? It provides comfort to some, but it's going to be a financial and psychological change for a lot of organisations.

Now in addition, calculating the correct payment is also going to have a bit more complexity. There's a move away from the simple flat rate for everybody. Instead, you've got to pay the lower of two figures. So, time for some numbers. The first is 80% of your employee’s normal weekly earnings, and the second is an updated weekly flat rate of 123 and 25 p if you want to be precise.

Now, this flat rate is still subject to final approval. Now, to visualise how this might work in practice, let's consider two different scenarios. Imagine we have an employee - let's call her Amina. They earn 140 pounds per week. Under the new rules, 80% of her pay is 112, and since 112 is lower than the flat rate of 123.25, that's the amount she's going to receive.

Now, contrast that with a higher earner who brings home 400 pounds per week. The 80% threshold's going to be 320. In that case, you'd cap the payment at the flat rate because it's the lower of the two figures. Now, payroll software people are working behind the scenes frantically to get this resolved and that will be hopefully taking care of all the calculations.

Now, it's worth noting folks that SSP is paid by the employer. There's no reimbursement by the government as you might do for statutory maternity pay. So there's a cost to the business. Now, the second massive change is the abolition of what are called waiting days. Now, historically, for a number of decades, we've relied on what's called a 3-day rule.

That means essentially that sick pay only starts on the fourth day of an absence. That is no longer the case. From April, 2026, you've got to pay SSP from the very first four day of sickness. This change effectively sets what's called the period of incapacity to work (PIW - don't you just love that?) at just one day.

While this provides immediate support for workers, it means an admin load for short-term sickness will increase significantly, and it may as some suggest, have an impact on sickness at your workplace. Again, an HR issue, a cultural issue, but again, you can't deny there's going to be an effect somewhere along the lines.

Now, despite these major shifts, the concept of linked periods is staying with us. That's not getting kicked into touch. If your employee has two periods of sickness within a 56-day period, the law treats them as one continuous absence. Now the continuity is vital because it determines the rate of pay you use for the second period of illness.

Now, let's pick up an example. Let's go back to Amina. Now she goes off sick on the 30th of April, 2026. I don't think it's a Friday, but let's assume she goes off sick. Her rate is established at 112. She comes back to work for two weeks, but falls ill again on the 18th of May. Now, because the gap between those two periods is less than 56 days,

the two periods of time link together. You don't perform a new calculation based on recent earnings. She simply continues on that 112-pound rate. Now, we’ll contrast that with somebody else. Let's call that person Ellis. They go off sick on the 4th of May with the earnings of 135. Their SSP rate is set at 108 pounds.

That's the 80% figure. Later that month, they receive a pay increase to 165, but they fall ill again on the 8th of June. Now, since the absence links with that 56 day window, the SSP remains at the original 108 rate from the first absence. The higher salary will not be reflected in their sick pay until the link is broken.

See what I mean about records being absolutely important here? Now, if they were to stay healthy until November, and then unfortunately fall ill again, a new calculation would occur, move them up to the flat rate of 123.25. Now, that's not all folks. We have to manage something called the transitional protection for staff caught between the old and the new systems.

Now, sickness absence from the sixth of April follows the current rules for eligibility. However, employees who are already receiving SSP and remain off sick as the clock strikes midnight will be transitionally protected. Now, this protection applies to workers earning between 125 and 154.05 per week. They will move to the up rated flat rate of 123.25 and stay there for the remainder

of their continuous absence. Let's share some action points. So we're aware of what the new rules are going to look like. We are aware there's going to be an impact on waiting days. We are aware that there's no lower earnings limit anymore, so what do you need to do? Well, make sure your payroll provider, make sure the software you are using can actually cope with that change of the 80% versus the flat rate logic and also the transitional protection rules.

I have no major concern in that respect. HMRC has shared technical guidance as they do often with software developers, so your provider should be well into the testing phase and ready for rollout. Secondly, make sure you check out your internal sickness policies. Your staff handbooks are like references to waiting days that will become legally incorrect in April 26th.

Make sure your line managers and HR teams are familiar with what the new rules are. They need to understand that even the lowest paid members of staff have day one rights. Clear communication across your business is going to prevent confusion and potential disputes with the new Fair Work Agency. It's probably also an idea, by the way, to understand the sickness that goes on in your organisation.

Is there a cultural issue that needs to be challenged? Is it just one of those things that happens? So again, making sure you've got a good positive work environment is going to be critical. And lastly, keep monitoring gov.uk for final confirmation. And if you're stuck on a technicality, you can always email them directly at ssp.team@dwp.gov.uk

Now, folks listening to I Hate Numbers, I’d love it if you could subscribe and share the episode with those who you feel will benefit. Until next time, plan it, do it, profit.