SSP from April 2026: the new sick pay rules in plain English
Statutory Sick Pay rules changed on 6 April 2026. The changes are some of the biggest in decades and apply to every UK employer. This is the practical version of what changed, what it means, and what you need in place. We are not lawyers; this is not legal advice.
What changed
Three things changed on 6 April 2026.
Waiting days are gone. SSP is payable from the first qualifying day of sickness absence. The three-day waiting period no longer applies.
The Lower Earnings Limit is removed. Every eligible employee qualifies for SSP regardless of how much they earn. The £125-per-week threshold is abolished.
The calculation has changed for lower earners. SSP is now paid at either £123.25 per week or 80% of Average Weekly Earnings, whichever is lower. The weekly rate is divided across qualifying days to produce a daily rate.
SSP is one of three day-one rights that came into force on 6 April 2026. Paternity leave and unpaid parental leave also became day-one rights on the same date. We cover all three together in our article on day-one rights from April 2026.
What this means in practice
More people qualify, payments start sooner, and the cost falls on the employer. For workforces with frequent short-term absences, part-time staff, or casual workers, the cost increase is real and immediate. SSP has moved from a payroll edge case to a routine cost line.
How the new calculation works
Take an employee earning £200 per week, working five days, off sick for three days. Their weekly rate is the lower of £123.25 or 80% of £200 (£160), which gives £123.25. Daily rate is £24.65. Three days SSP is £73.95.
Take an employee earning £100 per week, working five days, off sick for three days. Under the old rules they would not have qualified at all. Now their weekly rate is the lower of £123.25 or 80% of £100 (£80), which gives £80. Daily rate is £16. Three days SSP is £48.
The Fair Work Agency now enforces it
On 7 April 2026, the day after the SSP changes took effect, the Fair Work Agency launched. It is a new enforcement body with broad powers, including SSP enforcement. Before April 2026 there was no agency actively policing SSP underpayment. From April 2026 there is.
The Fair Work Agency can issue Notices of Underpayment for SSP and impose a mandatory penalty of 200% of the underpaid sum, capped at £20,000 per worker, plus enforcement costs. An employer who underpays five workers by £400 each could face the £2,000 underpayment plus a £4,000 penalty plus costs.
What you need in place
Updated payroll software that applies the new rules from 6 April 2026 onwards.
Day-one absence tracking, because the first qualifying day of sickness is now the first day SSP is payable.
Reliable Average Weekly Earnings calculation based on the eight weeks before the absence, particularly for lower earners.
Timely SSP1 forms when entitlement ends. The Fair Work Agency now treats late or missing SSP1 issuance as evidence of poor absence management.
Linked period tracking. Sickness absences within eight weeks are linked, and the eight-week window is unchanged.
Where to look for the detail
Acas guidance is at acas.org.uk/checking-sick-pay/statutory-sick-pay-ssp. HMRC's SSP guidance is at gov.uk/employers-sick-pay. Fair Work Agency information is at gov.uk/government/organisations/fair-work-agency.
If your business has fewer than 50 employees and no HR support, the cost of getting SSP wrong now exceeds the cost of having someone check your payroll setup once.
How PRODICTA fits in
PRODICTA's compliance features handle the SSP rules from April 2026 automatically. Eligibility checks apply the new criteria. Calculations apply the 80% rule for lower earners. Day-one entitlement is built in. Linked periods are tracked. SSP1 form generation is automated. Records are retained for the six years HMRC requires. To see how it works, the demo at prodicta.co.uk/demo includes the compliance dashboard.