From April 2026, significant statutory sick pay changes are expected to come into force. Under the proposed Labour Employment Rights reforms, employees will become eligible for SSP from the very first day of illness, removing the current three-day waiting period. In practice, this means individuals who are unwell will be able to access financial support immediately rather than facing a short period without pay.
While the intention is to reduce financial pressure on employees and encourage better health outcomes, many employers are anticipating an increase in payroll costs and a potential rise in short-term absence.
In this article, we explore what these updates mean in practice, how organisations can prepare in advance, and the practical steps leaders can take to prevent short-term absence from escalating.
Statutory Sick Pay Changes
A recent survey by WorkNest, involving 741 HR professionals and employers, found that 37% identified frequent short-term absence as their biggest absence-management challenge. With the upcoming reforms, many organisations are concerned this issue could intensify and place further pressure on already stretched resources. For this reason, gaining a clear understanding of the changes now is essential so you can plan ahead and put the right measures in place. Key changes include:
Removal of the Lower Earnings Limit
Currently, employees must earn at least £125 per week to qualify for Statutory Sick Pay. From April 2026, this lower earnings threshold is expected to be removed, meaning all employees will become eligible for SSP regardless of how much they earn. It is estimated that around 1.3 million lower-paid workers could gain access to SSP as a result of this change.
New SSP Calculation and rate
Statutory Sick Pay will increase to £123.25 per week from 6 April 2026. This is the maximum weekly amount payable. Employees will receive whichever is lower: 80% of their average weekly earnings or the flat statutory rate.
Average Weekly Earnings are calculated over the relevant assessment period before the qualifying date, based only on earnings that are subject to National Insurance contributions.
How to Reduce the Impact of Statutory Sick Pay Changes
Although the statutory sick pay changes are designed to support employees, employers can take proactive steps to manage cost and reduce disruption.
Return-to-Work Interviews
Holding a short, structured conversation when an employee returns from sickness absence is one of the most effective tools available. These meetings help to:
- Identify any underlying health or workplace issues
- Reinforce attendance expectations
- Offer reasonable adjustments or support where appropriate
- Discourage casual or avoidable absence
Consistency is key. Even brief, informal check-ins can make a noticeable difference when applied fairly across the organisation.
Clear Absence Policies
Ensure your sickness and absence policy is up to date, easy to understand, and regularly communicated. Employees should know how to report absence, what evidence may be required, and what support is available to them.
Manager Training
Line managers play a crucial role in handling absence well. Training them to recognise early warning signs, manage conversations confidently, and apply policies consistently will help reduce long-term issues.
Focus on Wellbeing and Prevention
Promoting employee wellbeing can reduce both short- and long-term absence. This may include mental health support, flexible working where appropriate, workload management, and encouraging staff to take annual leave. Prevention is often more cost-effective than cure.
How long can SSP be claimed for?
Statutory Sick Pay can be paid for a maximum of 28 weeks in total. This includes situations where an employee’s absence is not continuous, as long as the periods of sickness are classed as linked.
Different spells of sickness are counted as a single continuous period if they fall within 56 days of one another. After the full 28-week entitlement has been used, it will not start again unless the employee has returned to work for a long enough break to qualify again.
The Importance of Planning Ahead
Preparing early for the statutory sick pay changes will allow organisations to budget accurately, review internal policies, and equip managers with the right skills. Waiting until the reforms take effect may lead to rushed decisions, inconsistent processes, and unnecessary cost increases.
Forward planning might include:
- Reviewing payroll forecasts and absence trends
- Updating employment contracts and handbooks
- Communicating upcoming changes to staff clearly and transparently
- Auditing existing wellbeing and support initiatives
How The HR Booth Can Help
Navigating legislative updates can be challenging, particularly when they affect both cost and culture. The HR Booth supports organisations by:
- Reviewing and updating sickness and absence policies
- Delivering manager training on absence management and difficult conversations
- Analysing absence data to identify trends and risk areas
- Providing practical, compliant HR advice tailored to your sector
By taking action now, businesses can approach the upcoming statutory sick pay changes with confidence, ensuring they remain compliant while continuing to support their people effectively. Contact our HR experts today for support.
