Policy
In respect of Statutory Sick Pay (SSP), the Employment Rights Bill will:
- make SSP available from day one of absence, removing the three “waiting days” before it becomes payable (as is currently the case);
- remove the lower earnings limit on eligibility (currently average pre-tax earnings of £125 per week); and
- set the rate of SSP payable to employees at the lower of: (i) 80% of the average weekly earnings; or (ii) the current weekly rate of SSP (currently £118.75, but reviewed annually).
These changes will mean that low earners will become entitled to receive 80% of average weekly pay, where under the current law they are not entitled to SSP, and that SSP will be available for all employees from day one of sickness absence.
Timing and developments
Included in the Employment Rights Bill. The Government launched a Consultation on 21 October 2024. A response to which was published on 4 March 2025, alongside amendments to the Employment Rights Bill making the change to the rate of SSP.
The Government has said that this measure will take effect in April 2026.
Sources
Plan to Make Work Pay, Labour Party Manifesto and Background Briefing Notes to King’s Speech, Employment Rights Bill, Next Steps to Make Work Pay, SSP Consultation on 21 October 2024, Response to SSP consultation 4 March 2025, 5 March 2025 amendments to the Employment Rights Bill, Roadmap for Implementation of the Employment Rights Bill