Business owners will want to prepare for important changes to Statutory Sick Pay (SSP), which go into effect on 6 April 2026. These changes, per the Employee Rights Act 2025, are designed to enhance protections for vulnerable workers. They will also pose a significant change for employers, and especially those currently paying the legal minimum. Let's break down the four main changes that will affect your internal operations:

What are the key changes to SSP as of April 6?

• Day-one entitlement: The three-day waiting period is eliminated, making SSP payable immediately
• Wider eligibility: The lower earnings limit is removed, extending SSP coverage to about 1.3 million more workers
• New payment structure: SSP will be calculated as 80% of average weekly earnings (AWE), and capped at a higher statutory rate of £123.25 per week
• Phased returns: Payments will also apply to partial days missed during phased returns

How will this affect your business operations?

• Higher costs: These reforms are expected to add roughly £450 million in annual costs to businesses due to increased coverage
• Additional admin: Companies will need to update payroll, contractual policies, and ensure compliance with the new rules
• Increased compliance: The new Fair Work Agency will enforce these rules beginning 7 April 2026, with potential penalties of up to 200% of underpayment

What next?

• Audit your payroll: Identify how many staff earn below the current LEL (£123/week), as they represent your new cost overhead.
• Review contracts: If your contracts mention the "three-day waiting period," these will need to be updated before the 2026 deadline to avoid legal disputes.
• Budgeting: Expect an increase in administrative time to track part-day absences, as the new rules also cover phased returns to work.

If you'd like a summary of the Employee Rights Act, the Department of Business & Trade provide one here.