Changes are on the horizon for statutory sick pay (SSP), alongside a broader review of parental leave and pay.
These updates are part of the Government’s wider plan to enhance worker protections under the Employment Rights Bill, which relates to Labour’s commitment to improving conditions for working people.
Why is statutory sick pay changing?
On 1 July 2025, the Government introduced a policy roadmap aimed at strengthening rights for around half of the UK workforce while also giving employers more predictability.
One of the most notable developments, particularly relevant to and employers, is the upcoming reform of SSP.
This follows ongoing collaboration between the Chartered Institute of Payroll Professionals (CIPP), the Department for Work and Pensions (DWP), and the Department of Health and Social Care’s Work and Health Unit. The proposed changes are scheduled to take effect from April 2026.
How is statutory sick pay changing?
Two main adjustments will be introduced. First, SSP will be paid from the first day an employee is off sick, eliminating the previous waiting period.
This change is intended to help employees take necessary time off as soon as they become unwell, reducing the risk of working while ill and potentially aiding quicker recovery.
Some employers, however, have raised concerns about possible misuse, such as taking sick days for non-health-related reasons, which may require clearer internal policies to manage attendance expectations.
Second, employees earning below the current lower earnings limit (LEL) will become eligible for SSP. In these cases, SSP will be paid at 80 per cent of the worker’s average weekly earnings, as long as this amount is lower than the standard SSP rate.
While this means some workers may receive slightly less on a weekly basis, they will benefit from having SSP cover the full duration of their absence from day one.
For instance, a part-time worker earning around £125 a week could end up receiving more overall in the early weeks of illness under the new system than they would currently.
It’s worth noting that these changes affect the statutory minimum, and employers are still free to offer more generous company sick pay arrangements if they wish.
How we can help you
These reforms signal a shift in how workplace health and support are addressed, aiming to better reflect modern working patterns and the needs of today’s workforce.
We offer HR advice to a wide range of organisations to ensure that they remain fully compliant and follow best practice.
To find out more about our HR and employment law services, please contact Joanna Alexiou by calling 0207 420 4195 or emailing joanna.alexiou@mackrell.com, or Neil Emery by calling 0203 542 2557 or emailing neil.emery@mackrell.com
