Key Changes to Statutory Sick Pay (SSP)

We have been aware for some time of the pending changes to SSP and there is now official confirmation that they will be implemented as of April 6th, when the new tax year begins.

The key changes are as follows:

• The Lower Earnings Limit (LEL) will be removed, allowing all employees to access SSP regardless of earnings.

• SSP will be calculated as 80% of an employee’s average weekly earnings (AWE) or the current flat rate, whichever is lower. 

• Waiting days will be eliminated, enabling eligible employees to receive SSP from the first full day of sickness absence. 

It was unconfirmed how these changes would affect anyone already off sick on 6 April. However, Eligibility and Transitional Protections have now been confirmed: 

• Employees earning below the LEL who are off sick on or after 6 April 2026 will be eligible for SSP. 

• Those serving waiting days on 6 April 2026 will receive SSP from that date onward. 

• Employees already receiving SSP before 6 April 2026 will be transitionally protected to prevent a reduction in their SSP rate. They will continue to receive the uprated flat rate until they return to work, exhaust their entitlement, or their contract ends. 

• Employees earning between £125.00 and £154.05 per week will receive the flat rate of £123.25 during their continuous sickness absence if they were off sick and in receipt of SSP before 6 April 2026.

Calculating Average Weekly Earnings and SSP Payments: 

• SSP for those earning below the flat rate will be based on 80% of their AWE, calculated over a relevant 8-week period. 

• Payments will be rounded up to the nearest whole penny. 

• For linked periods of incapacity (within 56 days), the initial period's AWE will be used for subsequent calculations.