SSP Shake-Up 2026: What Employers Need to Know from April 2026.
From 6 April 2026, Statutory Sick Pay is getting its biggest overhaul in years and it will affect almost every employer and employee in the UK. Lower earners will newly qualify, payments will start from day one, and a new earnings-based SSP calculation for low-paid employees could significantly change payroll processes overnight. Whether you run a small business or manage HR for a large organisation, understanding these updates now will help you avoid compliance risks and unexpected costs later.
- Author
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Tracey Hand
Key Changes to Statutory Sick Pay (SSP) from 6th April 2026
Removal of the Lower Earnings Limit (LEL):
The LEL eligibility threshold (£125 per week in 2025/26) will be removed, allowing all employees to qualify for SSP regardless of their level of earnings.New SSP Calculation Method:
SSP will be calculated as 80% of an employee’s Average Weekly Earnings (AWE) or the 2026/2027 flat weekly rate of £123.25, whichever is lower.Removal of Waiting Days:
Waiting days (the 3 unpaid working days off sick before SSP became payable) will be abolished. Eligible employees will receive SSP from the first full day of sickness absence, even if they are absent for only one day.Self-Certification:
Employees can continue to self-certify sickness using Form SC2 for the first 7 days. At present, no changes to this process have been announced.
Eligibility and Transitional Protections
(For employees already on SSP or serving waiting days on 6 April 2026)
Employees Below the LEL:
Employees earning below the LEL (£129 per week for 2026/27) who are off sick on or after 6 April 2026 will become eligible for SSP.
Employees Serving Waiting Days:
Employees who are serving waiting days on 6 April 2026 will begin receiving SSP from that date onward.Transitional Protection for Low Earners:
Low-earning employees who were already receiving the flat SSP rate before 6 April 2026 will be transitionally protected so their SSP does not reduce to 80% of AWE. They will continue to receive the uprated flat rate until:they return to work,
their SSP entitlement ends, or
their employment contract terminates.
Employees Earning £125.00 – £154.05 per Week:
Employees within this earnings band who were already off sick and receiving SSP before 6 April 2026 will continue to receive the flat rate of £123.25 for the duration of that continuous sickness absence.
Calculating Average Weekly Earnings and SSP Payments
Employees whose 80% AWE is below the flat rate will receive SSP based on 80% of their AWE, calculated using the relevant 8-week period.
SSP payments will be rounded up to the nearest penny.
For linked periods of incapacity (where absences are within 56 days of each other), the AWE from the initial period will be used for subsequent SSP calculations.
A Note regarding Employees on Long Term Sick
Under the new statutory sick pay (SSP) regime from 6 April 2026, there is a specific transitional protection for very long periods of sickness absence. An employee whose continuous sickness absence started before 22 September 2025 (no work and no pay during the period), and who on 6 April 2026 is still off work, will technically be eligible for SSP but their weekly SSP rate will be £0.
If that same employee returned to work on or after 22 September 2025 and then subsequently became sick again within a linked period of incapacity for work (i.e. within 8 weeks), that break resets eligibility meaning they would be entitled to receive SSP with pay from 6 April 2026.
Transitional Protections and Linked Periods
The transitional protection ends when an employee either returns to work or their entitlement to SSP ends. If an transitionally protected employee returns to work after 6th April and then goes off sick again after (in a linked period), the new rate (calculated on the original relevant period’s earnings) will then apply to the second, linked period of absence.
What the “Relevant 8-Week Period” Means
1. It Is a Look-Back Period
To calculate Average Weekly Earnings for SSP, you review the employee’s pay in the 8 weeks immediately before their sickness begins.
2. Start and End Dates
The last normal payday before sickness starts is the end of the relevant period.
Count back to the payday that falls at least 8 weeks earlier.
The day after that payday becomes the start of the relevant period.
3. What to Include
Include all earnings actually paid during those 8 weeks (for example salary, bonuses, or commission subject to National Insurance).
Do not include earnings paid outside this period.
4. How the Average Is Calculated
Add together all pay received during the 8-week period.
Divide the total by 8 to obtain the Average Weekly Earnings (AWE).
New starters:
If an employee has not yet worked for 8 weeks, use all earnings paid to date and divide by the actual number of weeks (or days converted to weeks).