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Statutory Sick Pay (SSP) Changes from April 2026 - summary

Ciphr Academy
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From 6 April 2026, the UK government is introducing significant changes to Statutory Sick Pay (SSP). These changes affect eligibility, payment calculations, and employer processes. 

Below is a summary of the forthcoming changes, explaining what’s changing and how it will impact your SSP calculations.

Contents

 

1. SSP will be payable from day 1 of absence

What’s changing?

  • SSP will now be paid from the first day of sickness absence.
  • The current three waiting days are being removed.
  • A Period of Incapacity for Work (PIW) will now be formed by a single day's absence.

What this means for employers

  • Employers will have to pay SSP for every qualifying day of absence, even when an employee is off for just one day.
  • Short‑term absences will now attract SSP costs.
  • Accurate absence reporting becomes more important, as payment starts immediately
     

2. Lower Earnings Limit (LEL) is being removed

What’s changing?

  • All employees will qualify for SSP regardless of earnings.
  • Casual workers will be included if they are scheduled to work
  • Employees who previously earned below the LEL will now:
    • Receive 80% of their Average Weekly Earnings (AWE), or
    • The statutory flat rate,
    • Whichever is lower

What this means for employers

  • More employees will now qualify for SSP
  • Payroll teams will need to calculate AWE for low‑paid or variable‑hours staff
     

3. SSP Payment rules are changing

Overview of new payment rules

From 6 April 2026:

  • SSP is paid at 80% of the employee’s AWE, or the flat rate, whichever is the lower
  • The flat rate for 2026/27 is £123.25 per week (£118.75 for 2025/26)
  • Daily rates must be calculated using employees’ qualifying days and rounded up to the nearest penny

Examples

  • An employee earning £240 AWE will receive the flat rate (£123.25) because 80% of AWE exceeds the flat rate.
  • An employee earning £125 AWE will receive £100 per week (80% of AWE), unless transition protection applies.

 

4. Linked periods of sickness will still apply

Key points

  • Linked periods continue, but from 6th April a single sick day will link periods (instead of the previous four-day requirement)
  • The 28‑week maximum entitlement and the 3‑year linking rule remain unchanged
  • Employers must use the original AWE from the first PIW where periods link (there are some transition rules)
  • There is no reset of entitlement from 6th April – all previous linked periods continue to count

 

5. Transition rules for employees' sick over 6 April 2026

Some employees already off sick before 6 April may be affected differently.

The three main groups:

1. Employees earning below the LEL before 6 April

  • They did not qualify for SSP previously.
  • From 6 April, they will start to receive SSP at 80% of their AWE at the start of the PIW, or the flat rate if lower.

2. Employees currently serving waiting days on 6 April

  • Their waiting days end on 5 April.
  • From 6 April, they begin receiving SSP under the new rules.

3. Employees on long‑term sickness before 6 April

Some employees may be financially disadvantaged under the 80% rule. 
To prevent this:

  • Anyone already receiving SSP before 6 April, and still sick after 6 April, will continue to receive the full flat rate (£123.25), even if 80% of their AWE would be lower. This applies to employees with AWE of up to £154.05, where 80% would be less than the 26/27 flat rate.
  • This protection lasts until:
    • they return to work,
    • their SSP entitlement ends,
    • their employment ends, or
    • a pregnancy‑related exclusion begins.

Transition protection lasts for a maximum of 28 weeks, ending no later than 17 October 2026.

Practical examples

Below is a simple overview of the scenarios covered in training.

Example: Employee earning £125 AWE

  • Sick before 6 April → continues after
  • Old rate: £118.75
  • New 80% rate: £100
  • Transition applies → receives £123.25 until returning on 13 April
  • Transition requirement is broken by a return to work
  • Any later absence → paid at £100

Example: Employee earning £148 AWE

  • 80% of AWE = £118.40 (lower than new flat rate)
  • Transition applies → receives flat rate £123.25 until returning
  • Transition protection is lost on returning to work
  • Any later linked absence → paid at £118.40

Example: Employee earning £240 AWE

  • 80% of AWE higher than flat rate
  • No transition needed
  • Receives old rate before 6 April, new flat rate from 6 April

 

7. Other exclusions still apply

Employees are not entitled to SSP if:

  • They’ve already received 28 weeks of SSP
  • Linked periods span 3 or more years
  • They are receiving Statutory Maternity Pay or Maternity Allowance
  • They are off sick with a pregnancy‑related illness in the 4 weeks before their baby is due
  • They were in legal custody or on strike on the first day
  • They fall under IR35 rules

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