From April 2026, significant reforms to Statutory Sick Pay (SSP) will come into force under the Employment Rights Bill. While the Bill is still making its way through Parliament, the Government’s official roadmap confirms April 2026 as the planned start date. For employers, these changes mean higher costs, new administrative requirements, and an increased focus on effective absence management.
At Occupational Health Consultancy, we’re already speaking with HR teams and business leaders who want to understand the impact of these reforms. Here’s what you need to know and how you can prepare.
The Key Changes to Statutory Sick Pay
- SSP from day one: The current three “waiting days” will be abolished. Employees will receive SSP from the first day of sickness absence.
- No earnings threshold: The Lower Earnings Limit (currently £125 per week in 2025/26) will be removed, making around 1.3 million additional low-paid workers eligible.
- Rate for low-paid workers: For employees who currently fall below the LEL, SSP will be the lower of 80% of their average weekly earnings or the flat SSP rate.
- Current flat SSP rate: £118.75 per week (2025/26). This rate is usually uprated each April.
- Enforcement: SSP will be overseen by the new Fair Work Agency, bringing stronger compliance measures.
What This Means for Employers
1. Higher Direct Costs
Government estimates put the additional employer cost at around £450 million per year, or roughly £15 per employee on average. For SMEs, even a small increase in absence could have a big financial impact.
2. Potential for More Short-Term Absence
With SSP payable from day one, there’s concern that short absences may rise, as employees no longer lose out financially for the first few days.
3. Policy and Compliance Updates
Employment contracts, absence policies, and payroll systems will all need to be updated. Managers will require training to apply the new rules consistently.
How Employers Can Prepare
Although April 2026 may feel distant, now is the right time to prepare. Early action will help you manage costs and reduce disruption.
- Update sickness policies: Ensure your policies reflect day-one SSP and wider eligibility.
- Review payroll systems: Build in logic for 80% calculations for low-paid workers, capped at the flat rate.
- Train managers: Equip line managers with the knowledge to handle absence reporting and evidence requirements.
- Analyse current absence data: Identify trends in sickness absence to understand potential cost exposure.
- Invest in early intervention: Management referrals and fast access to occupational health can help reduce both the frequency and duration of sickness absence.
- Strengthen health surveillance: Regular monitoring protects employees and helps prevent long-term absences.
How Occupational Health Consultancy Can Help
Occupational health is more than compliance, it’s a cost-saving strategy. By taking a proactive approach, employers can manage the financial impact of SSP reforms and build healthier, more resilient teams.
At Occupational Health Consultancy, we support employers with:
- Management Referrals: Expert guidance for handling individual absence cases.
- Health Surveillance: Identifying risks before they become costly absences.
- Fitness for Work Assessments: Independent evaluations to support return-to-work decisions.
- Wellbeing Programmes: Initiatives that reduce stress, improve resilience, and support long-term workforce health.
The Business Case
SSP reforms don’t just present a cost, they also highlight the importance of proactive health management. Long-term sickness absence is already at record levels in the UK, and businesses that act now can avoid being caught out in 2026.
Proactive occupational health support reduces absence, boosts productivity, and helps employers meet their duty of care. In the long run, this can outweigh the additional costs created by SSP reforms.
Conclusion
The statutory sick pay reforms coming in April 2026 will change the way sickness absence is managed across the UK. Employers face new costs and responsibilities, but with the right preparation and support, they can also turn these changes into an opportunity to improve workforce health and resilience.
We’re here to help employers across the South coast and beyond prepare for SSP reforms.
Get in touch with us to find out how we can help!
