Statutory sick pay is changing – What do you need to be doing now?

Statutory sick pay (SSP) – it was marked for change in the build up to the 2024 general election. It was included in the Employment Rights Bill that was put before parliament. It was consulted on for several months. And now the changes are finally confirmed for April 2026.

It shifts heavily in the favour of employees and puts further burden on you as an SME employer. But there is plenty you can do to prepare now and minimise the impact which it might have on your business.

To help you get ready, we’ll take you through the changes, and advise on the good practices and processes that will help you minimise negative effects on your business, especially if you start now rather than wait until next April.

Statutory sick pay in April 2026

From 6th April 2026, the following SSP measures will be implemented:

The Lower Earnings Limit will be removed – This means all eligible employees will be able to receive SSP when they cannot work because of illness, no matter what they earn.

Weekly rate of SSP – Employees will be entitled to receive the lower of the flat rate or 80% of their normal weekly earnings.

Waiting period abolished – This means that SSP is paid from day one of the sickness absence as opposed to day four.

This all adds up to many more people becoming eligible for sick pay – 1 – 1.3 million more people – as well as being able to claim it from the start of their illness rather than day four.

How can you manage sickness absence from April 2026 onwards

The hallmarks of good sickness absence policy don’t change in April next year; they just become more important to adopt.

While there are plenty of genuine employees who will benefit from the additional financial support that these changes provide, the changes may also make it more tempting for others to “pull a sickie”, knowing that they will still get some pay coming their way. By having more robust controls, you can discourage such behaviour. Here are the top areas to look at:

Policy review – Start by understanding what your policy currently says. It may already contain everything we are about to suggest. Or you may contractually already offer something more generous than the current statutory set up. You may find lots of gaps which you can address before April.

Sickness reporting – Requiring employees to report sickness absence by telephone at the start of the first day of illness is best practice, where it is possible for them to do so. It allows you to gauge their voice and get a sense of the circumstances of their illness. It is easier for them to deceive you if they are allowed to notify by email, text or by having a third party contact you on their behalf. Ask them to call every subsequent morning that they are ill, where possible.

Absence records – Maintaining good absence records is essential for running a successful team: allocating annual leave fairly, complying with maternity leave and so on… But when it comes to sickness absence, good records are vital for spotting suspicious signs (like often being ill on sunny Fridays) and for gathering evidence if you are to instigate disciplinary or capability measures.

Return to work interviews – These are a valuable tool. By embedding these in your business, you set the expectation that every absence is noticed. Where the absence is genuine, it gives you the opportunity to show care. Where it is suspicious it gives you the chance to better identify this and commence further investigation. Consistent return to work interviews should reduce spurious absence.

Investigations – Give yourself scope to perform investigations where they may be required for disciplinary or capability reasons. Have a process for conducting them fairly, bring in expertise where required like occupational health, and apply them consistently throughout the business. Be mindful of discrimination, as many underlying causes of sickness absence could come in to the sphere of disability. We can help with professional advice.

Help from The HR Dept

We may not be able to change the new SSP rules, but we can help you live with them as best as possible. If you would like help reviewing and improving your sickness absence policies, procedures and culture, please contact us and we would be delighted to provide targeted help. Call us on 0117 970 2955 or email advice@hrdept.co.uk