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Preparing for day-one Statutory Sick Pay and other employment changes

Preparing for day-one Statutory Sick Pay and other employment changes

by Hannah Thomas
03 Mar 2026

6 April 2026 (the start of the new 2025/26 tax year) sees a few significant changes for employers. 

For an overview of 2026 changes for employers see the article on the FSB Legal and Business Hub on The Employment Rights Act: What changes employers can expect in 2026. Note that the Employment Rights Act only applies to businesses in England, Scotland and Wales.  

FSB’s Westminster team continues to lobby for these changes to be implemented in a more proportionate manner and for the reintroduction of an SSP rebate. We recognise the widespread concerns amongst our membership about these changes.  

The most significant change for small business employers is that Statutory Sick Pay (SSP) will be payable to workers in the UK from the first qualifying day of their sickness absence from 6 April 2026.  The Department for  Communities in Northern Ireland has confirmed that these changes will also apply in Northern Ireland with the rollout of changes to SSP  following the same timeline. 

Until 6 April 2026, SSP is usually paid from the fourth qualifying day of sickness. The first three qualifying days are waiting days and are unpaid (although employers may operate a contractual sick pay scheme which is more generous than the SSP scheme). The UK Government believes that the waiting days for SSP under the current SSP system creates a financial incentive for workers to work when they are unwell, which can lead to spreading infectious diseases at work and lower productivity for businesses. 

1. From 6 April 2026, waiting days are abolished and SSP becomes a day-one right for workers. 

Since SSP (payable by employers) was first introduced in the UK just over 40 years ago, waiting days have acted as a disincentive for short absences, such as occasional colds, seasonal viruses and other brief but low-level illnesses. Once they’re removed, the business cost of staff taking ad-hoc days off due to minor illnesses will rise.  

2. Additionally, from 6 April 2026 the Lower Earnings Limit for qualification for SSP (which is currently £125 per week for the tax year 2025/26) is removed, so that low-earners (typically part-time staff with low weekly earnings, or employees who work limited hours for multiple employers and some zero-hours workers) will become eligible for SSP for the first time.  

This change will see the introduction of a new SSP calculation for low earners. 

SSP has always been a flat weekly rate for all qualifying workers. The standard SSP rate is expected to be £123.25 per week from 6 April 2026. 

Due to the removal of the Lower Earnings Limit qualification for SSP, to avoid SSP exceeding workers’ normal weekly earnings, from 6 April 2026, employees whose earnings are below the  weekly flat rate, SSP will be 80% of their Average Weekly Earnings (AWE). 

In other words, SSP becomes the lower of: 

  • £123.25 per week, and 

  • 80% of AWE 

For example: 

  • If an employee earns £100 per week, SSP would be £80 per week (80% of £100). 

The removal of the Lower-Earnings Limit criterion may make it more likely that employers will see some increase in sickness absence among those who work minimal hours per week due to the introduction of 80% pay for workers who earn less than the SSP flat weekly rate; meaning just a 20% reduction in pay for sick pay absences for those workers. 

Please note also that there are some transitional provisions that will apply to workers who are already on sick leave on 6 April 2026 when the new SSP changes take place. These transitional provisions are to ensure that workers who are already on sick leave on 6 April 2026 do not have their SSP entitlement worsen mid‑absence. These transitional provisions mean that employer payroll systems will need to be able to handle both pre-April 2026 and post-April 2026 SSP calculations for workers who continue to be on sick leave when the new SSP provision come into effect. See the guidance page on Statutory Sick Pay on the FSB Legal and Business Hub for an overview of the existing SSP regime and the April 2026 changes.  

How should employers prepare for the 6 April SSP change? 

While payroll software will update automatically to apply this change, employers must still ensure that SSP (and other statutory and contractual payments) are calculated correctly as the legal responsibility for this lies with the employer. Employers must speak to their payroll providers, if in doubt. 

Employers will need to check their existing absence and sick pay policies for any references to waiting days or the first three days of sickness absence being unpaid, or reference to any earnings thresholds for SSP; as these references will need to be updated from 6 April 2026. Template policies will be updated on the FSB  Legal and Business Hub where necessary, shortly before 6 April 2026 to reflect this change. While employees will automatically be entitled to SSP according to the 6 April 2026 changes, references to outdated SSP rules may result in the wrong information being provided to employees when sickness absence occurs. 

Unfortunately, SSP is a direct cost to employers and FSB has continued to campaign for the reintroduction of a sick pay rebate scheme for small businesses. Employers with higher sickness rates or with a large part-time workforce who aren’t currently eligible for SSP could see a noticeable increase in SSP due to the 6 April changes to the SSP scheme. 

Enforce absence reporting rules and manage absences. 

With the widening of the net for SSP, it will become even more important for employers to ensure their sickness absence policies and sickness management procedures are applied to staff and properly enforced. Sickness absence policies should specify: 

  1. How employees must report their absence and to whom in the event of sickness. 

  1. Clearly document when self-certification applies (typically for the first 7 days of sickness absence) or when evidence such as a doctor’s fit note is required (typically for sickness absence that lasts longer than 7 days). Employers cannot insist on fit notes for absences of 7 days or less, but may want to pay for a medical report or occupational health report with the employee’s written consent for higher levels of absence or reduced employee capacity. Fit notes can be certified by doctors, nurses, occupational therapists, pharmacists and physiotherapists. 

  1. That return-to-work meetings may be required to investigate any workplace adjustments required on return to the workplace due to any reduced capacity and to investigate reasons for absence with the employee. As well as supporting staff, this can act to deter any unnecessary absences, where employees understand these will be investigated.  

  1. Ensure line managers understand and are able to apply relevant policies and procedures. 

  1. For workers who work variable hours, such as zero hour and casual workers, ensure you have agreed with the employee what their qualifying days are for SSP. Rules on qualifying days for those who don’t work fixed days are complex. The days which are qualifying days for SSP purposes should be specified in the contract, but If there is no agreement as to which days are working days in a particular week then every day is deemed to be a qualifying day for SSP (which is something that employers would wish to avoid for workers who do not work every working day). If the employer and employee have agreed that there are no working days in any week, the Wednesday of that week is deemed to be the qualifying day. 

Employers should also note the other 6 April 2026 changes:  

  1. The increase in employer statutory rates. See the gov.uk rates and thresholds for employers 2026 to 2027 for keeping track of the April 2026 statutory pay rate increases for payroll purposes. 
  2. The introduction of day-one employee entitlements to statutory paternity leave and ordinary (unpaid) parental leave for employees in England, Scotland and Wales. See the article on the FSB Legal and Business Hub on Day-one rights to paternity leave for bereaved partners in England, Scotland and Wales. 
  3. The Employment Rights Act 2025 adds sexual harassment to the list of types of disclosure that qualify for protection under the whistleblowing provisions of the Employment Rights Act 1996 in England, Scotland and Wales. Any policies that refer to the types of disclosure that qualifies for whistleblowing employee protection should be updated to reflect this change. 

Northern Ireland 

In Northern Ireland, the Department for the Economy (DfE) has published ‘The Way Forward’ document, detailing a number of proposed changes to employment law on the back of a consultation/information gathering exercise back in 2024.  

The Good Jobs Employment Rights Bill was due to be published in January 2026, but has been postponed until April 2026.  

FSB has engaged with the department extensively on this proposed Bill since 2024, raising concerns around negative or unintended consequences for small employers. We will continue this work once the Bill is published and will ensure that members are kept informed of any upcoming policy changes.