Statutory Sick Pay changes from April 2026: what this means for employers

2nd Apr 2026

Author: Mohammed Balal

If you employ staff, there is an important change coming into force this April that may affect your sickness absence policy and payroll processes.

From 6 April 2026, Statutory Sick Pay (SSP) will be payable from the first full day of sickness absence. The lower earnings limit is also being removed, meaning more employees may qualify for SSP than before.

For many businesses, this will not simply be a payroll update. It is likely to affect sickness absence policies, payroll processes and the way managers deal with absence in practice. It is also worth noting that there is separate government guidance for sickness absences that began before 6 April 2026 and continued after that date, so some existing cases may need careful handling.

HR and Employment law specialised Mohammed Balal explains these changes which have been introduced under the Employment Rights Act 2025, what you need to know and what changes you need to make now.

What is changing?

Under the previous rules, Statutory Sick Pay usually started after three waiting days. From 6 April 2026, those waiting days are being removed, so eligible employees will be entitled to Statutory Sick Pay from the first full day of sickness absence. The lower earnings limit is also being removed, meaning eligible employees can receive Statutory Sick Pay regardless of earnings.

The rate is changing as well. From 6 April 2026, Statutory Sick Pay will be paid at £123.25 a week or 80% of the employee’s average weekly earnings, whichever is lower. The daily amount payable will depend on the employee’s average weekly earnings and the number of qualifying days they work each week.

For employers, the main issue is making sure these changes are reflected properly in the documents and systems your business relies on. A policy that still refers to waiting days or old eligibility rules is likely to need updating. The same applies to internal guidance for managers and any standard letters or handbook wording that deals with sickness absence.

Why this matters for your business

These changes apply to employers of every size and in every sector, but the practical impact will vary from one business to another. For some, the priority will be updating a sickness absence policy and making sure payroll is ready. For others, the change may have a wider operational effect, particularly where there are larger teams, variable hours or a higher volume of short-term absence.

It is also worth thinking about consistency. In many businesses, managers are the first point of contact when an employee reports sick. If managers are still working from the old position, it can lead to mixed messages, uncertainty for employees and avoidable payroll issues. Clear and up-to-date guidance can help your business deal with absence in a fair and practical way.

This is why the change is about more than legal compliance. A well-drafted sickness absence policy should help your business manage absence consistently, set clear expectations and support day-to-day decision making. Reviewing it now gives you the opportunity to make sure it reflects both the new law and the way your business operates.

What should employers do now?

A sensible starting point is to review your sickness absence policy and any related documents. That may include your staff handbook, manager guidance, template correspondence and any internal procedures used when an employee reports absence. The aim should be to make sure the wording is accurate, practical and easy for managers to apply.

You should also speak to your payroll provider or payroll team in good time. Because the new rules affect both entitlement and calculation, it is important that payroll systems are ready to apply the new approach from the start of the 2026 to 2027 tax year.

Manager communication matters too. Even where a policy is updated, it still needs to work in practice. A short briefing or refresher can help managers understand when Statutory Sick Pay starts, who may qualify and when a case may need a closer look.

Do not overlook transitional cases

One area that could easily be missed is sickness absence that starts before 6 April 2026 and continues after that date. The government has issued separate guidance for those cases. In some situations, an employee who was not previously entitled to Statutory Sick Pay may become entitled from 6 April 2026.

That means employers should be cautious about assuming that every live sickness absence can be handled in exactly the same way. If an employee is already off sick before 6 April 2026, it is sensible to check the position carefully before payroll is processed.

How Butcher & Barlow can help

The April 2026 Statutory Sick Pay changes are a good opportunity to review whether your sickness absence arrangements are still working for your business.

At Butcher & Barlow, we can help you review and update your sickness absence policy so it reflects the new rules clearly and accurately. We can also help you check related guidance and documents, so your managers have a clear framework to follow and your business is prepared for the changes ahead.

If you would like us to review your sickness absence policy or advise on your absence procedures, please contact our Mohammed on 0161 764 4062 or email mbalal@butcher-barlow.co.uk.

 

 

 

 

 

 

 

 

 

 

 

 

 

The information in this article was correct at the time of publication. The information is for general guidance only. Laws and regulations may change, and the applicability of legal principles can vary based on individual circumstances. Therefore, this content should not be construed as legal advice. We recommend that you consult with a qualified legal professional to obtain advice tailored to your specific situation. For personalised guidance, please contact us directly.