Significant changes to Statutory Sick Pay (SSP) are on the horizon, and if you employ staff or use temporary and contract workers, now is the time to start preparing. The Employment Rights Bill will fundamentally alter how sick pay operates from April 2026, with real implications for your costs, workforce planning and recruitment strategy.
Get in touch with us at Personnel Placements for tailored guidance, or speak to our colleagues at Access2 Human Resources for a complete list of Employment Rights Act changes and compliance support.
What’s Changing?
From April 2026, two major changes will take effect.
SSP will become payable from day one of sickness absence. The current three-day waiting period will be abolished entirely, meaning employees receive financial support from the very first day they’re off sick.
The Lower Earnings Limit will also be removed. Currently set at £125 per week, this threshold excludes many part-time and lower-paid workers from SSP altogether. Once removed, every employee on your payroll qualifies — regardless of what they earn. The calculation method will shift to the lower of either 80% of average weekly earnings or the flat rate (currently £118.75 per week), potentially increasing SSP to £123.85 per week.
What This Means for Recruitment and Workforce Planning
These changes have a particular relevance for businesses that rely on flexible, temporary or part-time workers; the kinds of roles Personnel Placements specialises in filling. Workers in these positions are often the ones currently excluded by the earnings threshold, so the removal of that limit represents a meaningful shift in your employment costs and obligations.
When planning your workforce, it’s worth factoring SSP liability into the cost of roles you’re looking to fill. Positions that previously carried minimal sick pay risk may now carry greater exposure, particularly where short-term or casual contracts are involved. This doesn’t mean avoiding flexible hiring – far from it – but it does mean going into those decisions with accurate numbers.
If you’re currently filling gaps in your workforce with temporary staff, this is also a good moment to review whether your overall staffing model is working as efficiently as it could. A well-structured permanent or semi-permanent hire, placed through a recruitment partner who understands your business, can sometimes offer more predictable cost management than a revolving door of short-term cover.
The Candidate Perspective
From a recruitment standpoint, these changes are likely to make permanent and part-time roles more attractive to candidates. Workers who previously had no safety net when falling ill will now have one, which may influence the kinds of roles they’re willing to consider. Employers who clearly communicate their approach to employee wellbeing, including sick pay entitlements, will find themselves at an advantage when competing for talent.
If your job adverts, offer letters or onboarding materials don’t currently reflect your sick pay arrangements clearly, now is a good time to update them. Transparency around entitlements builds trust from day one.
Reviewing Your Policies Before April
Whether you’re a small business or a larger employer, your sickness absence policy needs a thorough review before April 2026. This means clear processes for notification, self-certification and return-to-work conversations, as well as manager training to ensure consistent and compliant handling of absences. Our colleagues at Access2 Human Resources are well placed to support businesses with exactly this kind of policy review and manager development.
Don’t overlook the Equality Act dimension either. Disability-related absence must be handled distinctly from general sickness absence, and any policy update is an opportunity to ensure you’re fully compliant with reasonable adjustment obligations. Failing to do so carries real legal risk.
Preparing Your Systems
Your payroll system will need updating to process SSP from day one and to capture employees previously below the earnings threshold. Test these changes well before April — the worst time to find an error is when an employee submits their first claim.
Update your employee handbook, offer letters and new starter materials to reflect the new entitlements. If you’re onboarding candidates, make sure those communications are consistent with what they’ll actually experience.
Starting Your Preparation
The April deadline will come around faster than expected. Begin by auditing your current absence levels and understanding your baseline costs. Then review your policies, update your systems, and make sure your managers are equipped to handle the increased volume of claims fairly and consistently.
At Personnel Placements, we’re here to help you think through the workforce planning side of these changes, whether that’s advising on the kinds of roles and contracts that suit your business model, or helping you attract candidates who are the right long-term fit. For the HR and compliance side, our trusted partner company at Access2 Human Resources have the expertise to guide you through every aspect of the Employment Rights Act changes.
