What Are the SSP Changes in April 2026?

What are the three SSP changes from April 2026?

The Employment Rights Act 2025 introduces the most significant reforms to Statutory Sick Pay since its creation. From 6 April 2026, three major changes take effect simultaneously:

1. Day-one entitlement — The 3-day waiting period is abolished. SSP is now payable from the first qualifying day of sickness absence, meaning employees receive pay from day one rather than day four.

2. Lower Earnings Limit (LEL) removed — Previously, employees had to earn at least £123 per week to qualify for SSP. This threshold is abolished entirely. All employees, regardless of earnings, are now eligible for SSP.

3. 80% Average Weekly Earnings (AWE) cap — For employees whose 80% of AWE is less than the flat weekly rate of £123.25, SSP is capped at 80% of AWE. This prevents employees from receiving more in sick pay than they would earn while working.

These changes are designed to extend the safety net of SSP to the lowest-paid workers who were previously excluded, while ensuring that SSP never exceeds an employee's normal earnings.

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What is the new SSP rate for 2026/27?

The SSP weekly rate increases from £118.75 (2025/26) to £123.25 (2026/27). However, the introduction of the 80% AWE cap means not all employees will receive the full flat rate.

The daily rate is calculated by dividing the weekly rate by the number of qualifying days in the relevant week. For a standard Monday-to-Friday worker, that is £123.25 / 5 = £24.65 per day.

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How does the 80% AWE cap work?

The 80% AWE cap is the most operationally complex of the three changes. Here is how it works:

Step 1: Calculate the employee's average weekly earnings (AWE) over the relevant reference period (normally the 8 weeks ending on the last normal payday before the sickness begins).

Step 2: Calculate 80% of the AWE.

Step 3: Compare 80% of AWE with the flat SSP rate (£123.25). The employee receives whichever is lower.

Worked Example 1: Low earner

An employee earns £136.33 per week on average.

• 80% of £136.33 = £109.06
• Flat SSP rate = £123.25
• SSP payable = £109.06 (the lower amount)

This employee receives less than the flat rate because their earnings are close to the old LEL.

Worked Example 2: Higher earner

An employee earns £240 per week on average.

• 80% of £240 = £192.00
• Flat SSP rate = £123.25
• SSP payable = £123.25 (the lower amount)

This employee receives the standard flat rate because 80% of their earnings exceeds it.

Worked Example 3: Very low earner (previously ineligible)

An employee earns £80 per week on average. Under the old rules, they would not qualify for SSP at all because they earned below the LEL of £123.

• 80% of £80 = £64.00
• Flat SSP rate = £123.25
• SSP payable = £64.00

This employee now receives SSP for the first time, though at 80% of their earnings rather than the full flat rate.

The breakeven point

The breakeven point where 80% of AWE equals the flat rate is:

£123.25 / 0.80 = £154.06 per week

Employees earning £154.06 or more per week will receive the full flat rate of £123.25. Employees earning below £154.06 will receive 80% of their AWE.

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What are the transitional protections for existing SSP recipients?

Employees who are already receiving SSP on 6 April 2026 are covered by transitional provisions:

• They continue to receive SSP at the new rate of £123.25 (or 80% of AWE if lower) from the date the new rules take effect.
• The waiting days they already served are not retrospectively credited. They do not receive backdated SSP for the first 3 days.
• The 28-week maximum continues to run from the start of their original period of incapacity.
• If they have a new period of sickness after 6 April, the new rules (including day-one entitlement) apply in full.

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What do employers need to do to prepare?

Employers should take the following steps before April 2026:

1. Update payroll systems

Payroll software must be updated to:

• Remove the 3-day waiting period calculation
• Remove the LEL eligibility check
• Add the 80% AWE calculation and comparison logic
• Apply the new £123.25 flat rate

Most payroll providers will release updates before April. Confirm with your provider that the update covers all three changes.

2. Review sickness absence policies

Update your employee handbook and sickness absence policy to reflect:

• Day-one SSP entitlement (no waiting days)
• Removal of the earnings threshold
• The 80% AWE cap for lower earners
• Any changes to your occupational sick pay scheme that interact with the new SSP rules

3. Brief managers and HR teams

Managers and HR staff need to understand:

• Employees are entitled to SSP from day one — no more telling staff the first 3 days are unpaid
• All employees now qualify regardless of earnings
• The cost implications, particularly if you have many lower-paid workers who were previously excluded

4. Budget for increased SSP costs

The removal of waiting days means employers will pay SSP for 3 additional days per absence spell. For organisations with high absence rates, this could be a material increase. Model the impact using your current absence data.

5. Update absence notification procedures

With SSP now payable from day one, your absence notification procedures become more important. Ensure you have clear processes for employees to report sickness absence promptly, even for single-day absences.

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How do linked periods of incapacity work under the new rules?

Linked periods of incapacity (PIW) still apply under the new rules, but the linking window remains at 56 calendar days (8 weeks). Two periods of sickness separated by 56 days or fewer are treated as a single period of incapacity.

Since waiting days are now abolished, the linking rules are primarily relevant for:

• The 28-week SSP limit — linked periods count towards the same 28-week maximum
• Continuity — ensuring the employer does not reset the clock on SSP entitlement for recurrent absences

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What other employment changes take effect in April 2026?

Several other statutory rates and employment rights change from April 2026:

These changes are part of the broader package of employment law reforms under the Employment Rights Act 2025 and associated regulations.

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How does Grove HR help with SSP changes?

Grove HR automatically applies the new SSP rules from April 2026:

• Day-one SSP calculation with no waiting days
• Automatic 80% AWE comparison against the flat rate
• LEL check removed — all employees included
• Linked period tracking with the 56-day rule
• Fit note reminders when medical evidence is due
• Policy templates updated for the new rules

Get started with Grove HR and automate your SSP compliance.