What are the major SSP changes?
Two headline changes coming into force on 6 April 2026 under the Employment Rights Act 2025:
- Removal of the Lower Earnings Limit (LEL) for SSP eligibility. All employees, regardless of how little they earn, will now qualify. (gov.uk)
- SSP payable from the first full day of sickness. The previous “waiting days” (three unpaid days) are abolished. (gov.uk)
SSP will be calculated as 80% of the employee’s average weekly earnings, or the flat rate of £123.25 per week, whichever is lower. (gov.uk)
Who benefits and who needs to adapt?
Beneficiaries:
- Employees in low-income roles previously below the LEL (e.g. part-time, casual workers).
- Those who cannot afford unpaid waiting days previously.
Businesses to implement changes:
- Update payroll systems to remove condition of earning above LEL for SSP.
- Ensure SSP is paid from day one for eligible sickness absences starting on or after 6 April 2026. Absences spanning start date have special handling. (gov.uk)
Example scenarios
- Part-time café worker, Emma, earns £90/week (previously under LEL)—now eligible for SSP if ill from 6 April onward.
- Office-based employee with earnings above LEL but previously endured unpaid day-one to day-three of sickness—earn SSP immediately.
- For lingering absences starting before 6 April but ending after—different SSP rules apply (existing entitlement holds). (gov.uk)
What employers need to do
- Audit HR policies and employee handbooks to reflect new eligibility / timing.
- Test payroll processing for absences starting 6 April onward.
- Ensure employees are informed of their rights. Those without contracts or in variable hour contracts should receive guidance.
- Understand implications for cost budgeting—expect possibly higher SSP payouts.
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Final thought: These changes are part of a broader shift to strengthen the protections and fairness of income support for workers. If your business hasn’t yet prepared, make SSP policy updates a priority this month.