Statutory Sick Pay in 2026

From April 2026, employers will face increased Statutory Sick Pay (SSP) costs as changes introduced by the Employment Rights Act 2025 expand employee eligibility. The ERA 2025 removes the current three-day waiting period, meaning employees will be entitled to SSP from the first day of sickness absence. In addition, the lower earnings limit will be abolished, allowing employees to qualify for SSP regardless of their earnings level. For those earning below the former lower earnings limit, SSP will be paid at 80% of the employee’s earnings, capped at the statutory flat weekly rate.

The Government has also confirmed that the weekly SSP rate will rise to £123.25 in April 2026, an increase from £118.75.

Implications and action points:

• Employers can expect a significant increase in sickness absence costs
• Greater emphasis will be required on robust absence management procedures
• Sickness absence policies should be reviewed, and company sick pay schemes reassessed