Significant changes to Statutory Sick Pay (‘SSP’) under the Employment Rights Act 2025 (‘ERA 2025’) are due to come into force on 6 April 2026. The change just so happens to fall during Stress Awareness Month in the UK – the theme for which this year is “be the change”, which is fitting given the legal changes afoot.
In this article, we take the opportunity to remind employers of the impending April 2026 changes to SSP, reflect on steps employers should be taking and looking beyond the minimum, including why seeking to prevent sickness absence, particularly through the lens of stress, may be more important than ever.
Reminder of the SSP Changes
The ERA 2025 introduces several key changes to SSP from 6 April 2026 (see here and our Reform Hub).
Pre-April 2026
The SSP regime is complex. In broad terms, in the position pre-6 April 2026, SSP is paid by employers to eligible employees who are absent from work due to incapacity (i.e. sickness) for four or more consecutive days. SSP is not payable for the first three “waiting days” in any period of entitlement. SSP can be paid for up to 28 weeks in any period of incapacity for work (including linked periods). In addition, to qualify, eligible employees must have average weekly earnings at or above the Lower Earnings Limit (£125 per week for the 2025-2026 year). The statutory weekly SSP rate is set annually (£118.75 per week for the 2025-2026 year).
From 6 April 2026
Under the ERA 2025 the right is being extended so that:
- SSP will be a day one right, meaning that SSP will be available from the first day of absence (as the three-waiting day period is being removed)
- The Lower Earnings Limit eligibility requirement is being removed (£125 per week in 2025-26)
- The rate of SSP will be payable at the lower of the statutory weekly SSP rate set by the Government or 80% of the employee’s normal weekly earnings (essentially average weekly earnings). Separately, in line with the usual rates increases, the statutory weekly SSP rate set by the Government will increase from £118.75 to £123.25 on 6 April 2026.
On 18 March 2026, the Government published guidance for absences that start before and end on or after 6 April 2026. This guidance covers different scenarios, for example where the employee was previously not entitled to SSP because they were below the Lower Earnings Limit, and where an employee would be serving waiting days on 6 April 2026.
Impact of the Changes on Employers
These changes will mean that more people will be entitled to SSP and will be paid it earlier. Indeed, the Government stated in its Factsheet that “up to 1.3 million low-paid employees will now be entitled to Statutory Sick Pay and all eligible employees will be paid from the first day of sickness absence, benefitting millions of employees.” A recent survey commissioned by Acas has revealed that 43% of employers said that workers getting sick pay for the first day of illness, rather than the fourth day, would have the biggest impact on them. 36% of workers also listed it as their biggest impact.
The changes are likely to have more of an impact on employers who pay SSP only and who have a lower-paid workforce. Many employers pay enhanced contractual sick pay to employees who have completed a probationary period or a period of service, from the first day of sickness absence and at full pay. For such employers, this may have less of an impact but nonetheless it is important to understand the changes and how such employers should prepare (see practical steps below).
Of course, enforcement of SSP will also become part of the remit of the new Fair Work Agency, which is being established on 7 April 2026 (albeit it is anticipated that enforcement powers will take effect in stages). This will mean that it is even more important for employers to get to grips with the new rules on SSP.
Current Statistics on Sickness Absence and Stress/Mental Health
According to the Health and Safety Executive (‘HSE’) report, stress, depression or anxiety and musculoskeletal disorders accounted for the majority of days lost due to work-related ill health in 2024/25, with 22.1 million and 7.1 million respectively. In addition, on average each person suffering took 22.9 days off for stress, depression, or anxiety in 2024/25.
Recent research from CIPD and Simplyhealth also shows that the top causes of short-term absence (up to four weeks) were:
- Minor illnesses, such as colds/flu (78%)
- Mental ill health, such as depression or anxiety (29%)
- Stress, and caring responsibilities for children (both 26%)
Even on current statistics pre-April 2026 changes, it is evident that sickness absence (particularly due to stress or mental health) has far-reaching consequences for both individuals and organisations. Add in the changes with more people having a right to SSP and from day one, you can see how both long term and short-term absences and costs for such absences could add up even more for employers.
Merely addressing absence once it has occurred may not be sufficient. Now may be a good time for employers to look beyond compliance and consider proactive approaches to support employees and their health and wellbeing, particularly in relation to stress and mental health. By prioritising prevention, organisations can reduce the impact of absences, ultimately fostering a healthier and more resilient workforce.
So – What Can Employers Do?
Preparing for the changes
Of course, it goes without saying that employers need to prepare for the changes coming into force (if they haven’t done so already). This includes reviewing their sickness absence policies and employment contracts to ensure these reflect the new SSP entitlements and that they are fit for purpose. In particular, given the removal of the “waiting days”, employers may also need to get to grips with some of the knottier aspects of the complex rules around SSP, such as calculating normal weekly earnings and the restrictions imposed on employers regarding conditions around notification of absence.
Employers may also need to budget for the potentially higher costs for SSP and ensure their payroll is ready for the changes. Training for HR and managers will also help to ensure ongoing compliance.
The Government has also published guidance for employers here to help. Further updated guidance is anticipated.
Preventative steps
However, there are more proactive steps that employers can take to address the potential causes of sickness absence, in particular to stress and mental health. For example, employers could:
- Empower their line-managers – Line managers will be key in helping employers address potential causes of sickness absence. Effective communication, including via one‑to‑ones and clear escalation channels, could help identify issues early and allow line-managers to intervene in a timely and appropriate manner. Ensuring managers are well-trained on company polices can be helpful to reinforce and manage attendance and performance expectations
- Consider work culture and management practices – Employers could seek to understand their business, including whether aspects of workplace culture or management approach are impacting staff wellbeing. An understanding of any risk areas, or teams, will mean that employers can choose to make changes to their current approaches
- Keep workloads and resourcing under review – At a more structural level, regular reviews of workloads, resourcing levels and roles across the business can help identify any structural pressure points that impact employee stress and wellbeing. Addressing these issues where appropriate can reduce absence risk, improve productivity and limiting operational disruption
- Provide wellbeing and employee assistance programmes (‘EAP’) and consider occupational health support – In addition to communication via line managers, providing access to confidential EAPs (such as counselling and advice services) can help address issues before they escalate into sickness absence. Details of any EAPs should be easy for staff to find and use. Employers may also wish to consider whether occupational health referrals are appropriate and support at an earlier stage to see if adjustments can be made to prevent prolonged sickness absence
If you want to understand more about the ERA 2025 changes, please contact your usual Littler contact. For training enquiries, please contact Natasha Adom. For information more generally about the ERA 2025 please see our Reform Hub and our ERA 2025 products and services.
