Changes to statutory sick pay in the UK

As part of the Employment Rights Act, UK workers are set to receive enhanced sick pay entitlements. The new law aims to reduce financial uncertainty during periods of illness.
We’ll take you through the changes and what this means for employers.

What’s changing?

Workers will be entitled to statutory sick pay (SSP) from the first day of their illness. Currently, employees can only claim SSP on the fourth day they’re off sick.
The new entitlement will apply from day one of their employment (there is no qualifying period).
Additionally, the lower earnings limit for SSP will be removed. Currently, workers who earn £123 per week or less are not entitled to SSP - this will change under the new law, but a lower level of sick pay for these earners will be set out. It’s likely that a percentage of earnings will be agreed upon. 

 

When will the changes come into effect?

The changes are expected to come into effect in 2026. 

 

Why are the changes being made?

The new legislation aims to make it easier for people with temporary illnesses to recover and return to work quickly, and for those with longer term illnesses to manage their illness while remaining part of the workforce.

Who pays SSP?

Individual businesses pay SSP - it can’t be claimed back from the government as with some other forms of statutory leave and pay like parental leave. 

 

How much is SSP?

For those earning over £123 per week, the SSP rate is currently £116.75 per week. Employers must pay it to eligible employees for up to 28 weeks.
Those earning less than £123 per week are not currently eligible for SSP. Under the new rules, they are likely to be entitled to a percentage of their regular earnings. 

 

Can I pay a higher rate of sick pay than SSP?

Yes, some companies offer enhanced sick pay entitlements as an employee benefit.

 

What should employers do to prepare?

Employers should familiarise themselves with the new law, and ensure they budget for additional SSP requirements. 

 

Further reading