From 6 April 2026, changes under the Employment Rights Act 2025 will significantly expand entitlement to Statutory Sick Pay (SSP).

Here’s a breakdown of the key updates employers should be aware of:

• Weekly Rate – From 6 April 2026, SSP increases to £123.25 per week.
• How SSP Is Calculated – Affected employees receive the lesser of £123.25 or 80% of their Average Weekly Earnings(AWE). AWE is based on NI-liable pay from the eight weeks before the relevant date.
• Waiting Days – The waiting period has been removed; SSP is payable from the first qualifying day of sickness.
• Qualifying Period – A single qualifying day defines a Period of Incapacity for Work (PIW).
• Lower Earnings Limit – The minimum earnings threshold has been removed, allowing more employees to qualify for SSP.
• Maximum Entitlement – SSP can be claimed for up to 28 weeks per sickness period.
• Linked Absences – Absences occurring within 56 days are treated as one continuous period for SSP purposes.
• Tax and National Insurance – SSP remains subject to tax and National Insurance contributions.
• SSP1 Form – Employers must continue to issue an SSP1 form when SSP ends or is not payable.
• Employees Already on Sick Leave – The updated rates and rules apply from 6 April 2026, even for employees already receiving SSP.

 

What This Means for Health and Social Care Providers

The SSP reforms are likely to have operational, financial and governance implications, particularly in services that depend on stable staffing and careful rota planning.

Operational impact
Paying SSP from day one may lead to an increase in short-term absences, including single-day absences that were previously unpaid. In regulated care environments where minimum staffing ratios apply, even small increases in absence levels can create significant pressure. Providers may experience:

• Greater reliance on bank or agency staff
• Increased short-notice rota challenges
• Pressure on continuity of care and team stability

Financial exposure
The removal of the Lower Earnings Limit will widen eligibility across much of the sector, particularly where there is a high proportion of part-time or lower-paid staff. This may:

• Increase overall sickness-related payroll costs
• Affect 2026–27 budget forecasting
• Require closer monitoring of absence trends and cost data

HR and governance considerations
Policies, contracts and payroll systems will need to reflect day-one entitlement. Managers should be prepared to apply reporting procedures consistently, manage fit notes appropriately and maintain clear attendance processes. From a regulatory perspective, workforce resilience is closely linked to service quality and governance standards. Proactive preparation will help reduce operational risk and support regulatory confidence as the changes take effect in April 2026.

How HLTH Compliance Can Support You

At HLTH Compliance, we support health and social care organisations to ensure their employment practices are legally compliant, operationally robust, and aligned with regulatory expectations.

If you are unsure how the upcoming changes may affect your organisation — or would like your policies and workforce arrangements reviewed — you are welcome to book a complimentary call with our HR Director to discuss your situation and next steps.

Early advice can help you reduce risk, protect service delivery, and ensure your organisation is fully prepared for the changes ahead.

Contact us today to arrange your complimentary consultation.