Statutory Sick Pay changed significantly on 6 April 2026. SSP is now payable from day one. Every employee qualifies regardless of earnings. A new enforcement agency is active. That was just over two months ago — and plenty of employers are still running on the old rules. Here's what changed and what needs updating now.
What Changed on 6 April
Three things shifted simultaneously under the Employment Rights Act 2025.
The waiting days are gone. Previously, SSP only kicked in from the fourth qualifying day of sickness. The first three days were unpaid. That rule no longer exists. A single sick day now triggers an SSP obligation.
The earnings floor is removed. Under the old rules, employees had to earn at least £125 per week to qualify. Part-time workers, casual staff, and lower-paid employees were excluded entirely. From 6 April, every employee qualifies — with lower earners receiving the lesser of £123.25 per week or 80% of their average weekly earnings.
The weekly rate has increased. The 2026/27 SSP rate is £123.25 per week — up from £118.75. For a standard five-day worker, that's £24.65 per qualifying sick day.
The Cost Impact
The removal of waiting days is the biggest financial shift for most employers.
Under the old rules, a one, two, or three-day absence cost nothing in SSP. Now every sick day has a cost from the first. For businesses where short-term absences are common — retail, hospitality, construction, care — this adds up.
A business with ten employees each taking the UK average of 4.4 sick days a year will pay approximately £1,085 in SSP annually under the new rules. Under the old framework, with waiting days absorbing most short absences, the cost was close to zero.
The government estimates the reforms add around £450 million in SSP costs across UK employers each year. That figure lands disproportionately on businesses with part-time, lower-paid, or casual workforces — who previously fell outside the eligibility threshold entirely.
Who's Most Exposed
Not every business feels this equally. The change hits hardest where:
- Absence rates are higher. Physically demanding or high-pressure work environments tend to generate more sick days.
- Part-time and low-paid staff are a large part of the workforce. These employees previously cost nothing in SSP. They now qualify in full.
- Zero-hours or casual contracts are common. The removal of the earnings floor pulls in workers who were previously excluded.
If your team is largely salaried, full-time, and office-based, the practical impact is modest. If your workforce is more mixed, the change is material — and just over two months in, if you haven't reviewed this, you may already have underpaid SSP obligations sitting on your books.
What Still Needs Updating
This isn't just a payroll adjustment. There are three areas to check across your business:
- Payroll systems. Your software needs to apply SSP from day one with no waiting period. The daily rate of £24.65 applies for each qualifying sick day. If your payroll is processed manually or through older software, confirm it's been updated for the new rules.
- Employment contracts and absence policies. Any document that references the three waiting day rule is now out of date and needs updating.
- Absence records. With SSP applying from day one, every absence — including single-day absences — needs to be logged accurately. The Fair Work Agency, which launched on 7 April 2026, has live enforcement powers over SSP compliance. Poor record-keeping is a compliance risk, not just an admin inconvenience.
What Founders Should Do Now
Just over two months have passed since the changes went live. If you haven't already:
- Confirm your payroll software is calculating SSP correctly under the 2026/27 rules
- Update any employment contracts that reference waiting days
- Review your absence management process — every absence needs logging from day one
- For part-time or casual staff who previously didn't qualify, check they're set up correctly in your payroll system
- If you offer company sick pay above the statutory minimum, check your policy still reads correctly under the new rules
Employment law changes like this tend to get actioned slowly — until an enforcement notice or an employee dispute forces the issue. The Fair Work Agency is new and active. It's better to sort this in a quiet moment than a pressured one.
If you want to make sure your payroll and employment setup is compliant for 2026/27, speak to a Runway co-founder.
