Employment Rights Act Policy explainer  Statutory Sick Pay changes, April 2026

The second wave of reforms – including changes to Statutory Sick Pay – are now in effect in Great Britain, as of 6 April 2026.

From 6 April, Statutory Sick Pay is now payable from the first full day of sickness absence and will be available to more employees.

What is changing?

• Statutory Sick Pay is now available to all eligible employees regardless of their earnings (the Lower Earnings Limit is being removed)
• Statutory Sick Pay is now payable from the first full day of sickness absence (the three-day waiting period is being removed)
• The rate of Statutory Sick Pay for all employees is now calculated at 80% of their average weekly earnings or the flat weekly rate, whichever is lower

What do these changes mean for employers?

These changes will increase sick pay costs for many businesses. The government’s own analysis suggests that the reforms will cost employers around £400 million per year.

Employers can prepare for these changes by:

• Reviewing sickness absence policies and prepare updates to any references to waiting periods or earnings thresholds
• Checking with their payroll provider how the changes will affect your payroll system
• Communicating the changes to management teams and staff
• Budgeting for a higher annual SSP spend
• Strengthening absence management policies to ensure greater visibility of when and why SSP is claimed

If you have any questions about these changes, you can reach out to the IoD’s Information and Advisory Service at [email protected]. Full IoD members can access professional advice on HR issues and employment law as part of their membership.