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Statutory Sick Pay – Changes for Employers from April 2026

  • Written by Katie
  • September 8, 2025
  • Business News, Tax

The Department for Business and Trade (DBT) has confirmed that major reforms to Statutory Sick Pay (SSP) will take effect from April 2026. These changes are designed to improve employee rights but will also increase costs for many employers.

Key changes to SSP from April 2026

  • SSP will be payable from the first day of sickness absence, rather than from the fourth day as at present.

  • The £125 per week earnings threshold will be removed, meaning more employees will qualify for SSP.

  • For employees earning less than £125 per week, SSP will be the lower of:

    • 80% of their normal weekly earnings, or

    • The standard SSP rate (currently £118.75 per week).

What this means for employers

The reforms are likely to increase payroll costs, particularly for businesses with higher levels of staff absence. This comes on top of recent increases to the National Minimum Wage and Employers’ National Insurance.

It is also worth noting that, unlike statutory maternity or paternity pay, SSP cannot be reclaimed from HMRC. Businesses will therefore need to plan ahead and factor these additional costs into their budgets.

Preparing for the changes

Employers should take the following steps ahead of April 2026:

  • Forecast potential increases in payroll costs.

  • Review sickness absence policies.

  • Ensure payroll systems are updated to handle the new rules.

  • Train payroll and HR teams to manage compliance.

Planning now will help employers manage the impact of these reforms and ensure employees are paid correctly.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

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