Statutory Sick Pay reforms to start in April

With reforms set to come into play in April, Statutory Sick Pay (SSP) is getting its biggest shake up in over a decade.

Statutory Sick Pay changes

Currently, employees are not paid SSP for the first three qualifying days of absence.

However, to make sick pay fairer and prevent employees being left without income at the start of an illness, from the 6^th of April 2026, SSP will apply from day one.

The government also plans to remove the Lower Earnings Limit – this excludes low-paid and part-time employees from being eligible for SSP.

This would result in all workers, no matter their earnings, being able to take advantage of SSP.

From an employer’s view point, this will extend responsibilities and increase administrative demands.

How SSP reforms will affect businesses

These changes will have a significant impact on employers, and businesses that rely on casual or short-term workers may be affected the most.

SSP reforms will create increased costs and the need to update payroll systems, policies, and contracts.

EC Human Resources is urging businesses to start preparing for the changes now, by:

• Amending employment contracts referring to unpaid ‘waiting days’.
• Reviewing enhanced sick pay schemes to ensure they remain suitable once SSP starts from day one.
• Tracking data effectively with accurate absence records and clear return-to-work procedures. This will help to identify trends, manage absences proactively and maintain compliance.

To find out more about contracting, please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.