27.02.2026

From 6 April 2026, the Employment Rights Act 2025 will require employers to pay statutory sick pay (SSP) from the first full day of sickness absence rather than the fourth (i.e. the current three-day waiting period will no longer apply).  The Lower Earnings Limit will also be removed, meaning all eligible employees will be paid either the SSP flat rate or 80% of their weekly earnings – whichever is lower. 

Practical impact of SSP reforms

In practice, these reforms mean that, from 6 April onwards, more employees could be eligible for SSP, and the changes will also bring forward the point at which payments must begin.

If, like many companies in the manufacturing sector, your organisation already offers a contractual enhancement to SSP, these changes may have limited practical impact. But if your organisation currently pays SSP only, it is worth considering the impact these changes could have in relation to your HR practices moving forward.

Firstly, these changes may be able to help you with the better management of phased returns to work following a period of absence where an employee builds up gradually to their normal working hours (particularly where you are not paying full salary for the phased return, as some employers do, depending on the circumstances). Because the current SSP rules mean an employee needs to be absent for four consecutive days (including weekends and bank holidays), known as a ‘period of incapacity for work’, to qualify for SSP it can be difficult to structure a phased return and ensure the employee is still eligible for SSP. It will be more straightforward under the new rules. So, for example, where an employee who normally works five days a week returns from sick leave initially on Mondays and Thursdays they would previously not have been entitled to SSP for the three non working days in the week whereas now they will be entitled to SSP for all three days, assuming those days are still classed as days of incapacity.

Another issue to consider is whether the changes will result in an increase in intermittent/short-term absences (for example, will employees be tempted to take an occasional Friday off work “sick”, and/or be less inclined to come to work when they are not feeling 100%?). Under the new rules, employers will have to pay SSP for odd days off sick, rather than only paying it for more extended absences.

Action points for HR

There are various steps HR can take to prepare for, and in some cases limit the possible impact of, these reforms:

  • Review your sick pay provision, including for phased returns to work
  • Review your absence management policies
  • Give managers thorough training where needed
  • Calculate the costs to your organisation

Remember too that, aside from changes under the Employment Rights Act, the statutory rates for sick pay (and family leave rates) will increase from 6 April 2026: see question 3 of HR and Employment Law FAQs December 2025.

How can we help

Make UK is on hand to support you with reviewing your absence management policies and procedures and training your managers. We also offer video learning, and our HR Consultancy team can provide a training session on absence management.

In addition, we provide Health & Wellbeing training designed to reduce sickness absence, delivered through our EHS team. This supports employers in taking a proactive approach to wellbeing, helping to reduce absence levels and promote a healthier workplace.

To read more about the changes to SSP and other changes under the Employment Rights Act, see our Spotlight Series (particularly Spotlight Series: Statutory Sick Pay).

If you are a Make UK subscriber, you can access detailed HR and employment law guidance, template policies and letters about sickness absence on our website in the HR & Legal Resources section.

In addition, our team of employment lawyers is happy to help if you have questions or need advice. And if you need hands-on support with any projects as you prepare for the changes, our HR and legal consultants can work with you to get the right steps in place and stay compliant. 

If you are not a Make UK subscriber, you can contact us for further support on this topic. Click here for information on how we can help your business.