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Statutory Sick Pay Changes Under The Employment Rights Act 2025

One of the most significant proposals within the Employment Rights Act 2025 is reform to Statutory Sick Pay (SSP), due to go live in 2026.

Alongside the expansion of day-one employment rights, the government has outlined plans to change how statutory sick pay works for employees and employers across the UK.

For small business owners and managers, these statutory sick pay changes could have practical implications for absence management, payroll processes and employment policies. However, as with several areas of the Employment Rights Act reforms, it is important to distinguish between what is already confirmed and what remains subject to consultation or further guidance.

This update explains the current statutory sick pay rules, the proposed SSP changes for 2026, and what employers should consider preparing for.

What is Statutory Sick Pay?

Statutory Sick Pay is the minimum amount employers must pay eligible employees who are unable to work due to illness.

Under current UK employment law, statutory sick pay is payable when an employee:

• Is classed as an employee for SSP purposes

• Earns above the Lower Earnings Limit

• Has been absent from work due to sickness for at least four consecutive days

The current statutory sick pay rate is set by the government and reviewed annually.

Importantly, under the existing rules, SSP is not payable for the first three “waiting days” of sickness absence. Payment normally begins on the fourth day of absence.

What Changes Are Being Proposed for 2026?

The Employment Rights Act 2025 includes proposals to reform statutory sick pay in several ways. These reforms are intended to increase access to sick pay and remove barriers that currently prevent some workers from receiving it.

Removal of Waiting Days

One of the most widely discussed reforms is the removal of the three waiting days before statutory sick pay begins.

If implemented, this would mean SSP becomes payable from the first day of sickness absence, rather than starting on day four.

This proposal aligns with wider day-one employment rights reforms, designed to provide earlier protections and support for employees.

Removal of The Lower Earnings Limit

Another proposal is to remove the requirement for employees to earn above the Lower Earnings Limit in order to qualify for statutory sick pay.

Currently, some lower-paid workers do not qualify for SSP because they earn below this threshold.

Removing this limit would extend statutory sick pay eligibility to a wider group of workers.

Changes To SSP Calculation

Consultation has also considered how statutory sick pay might be calculated for employees who previously fell below the earnings threshold.

However, the detailed mechanics of how these payments may be calculated are still subject to consultation and further government guidance.

Are The Statutory Sick Pay Changes Confirmed?

The direction of travel for statutory sick pay reform is clear within the Employment Rights Act 2025, but some details are still being finalised.

Large employment law reforms are typically introduced in stages, with secondary legislation and detailed guidance following the main Act.

This means that while the overall intention of SSP reform is established, employers should continue to monitor updates around implementation dates and final regulations.

For HR professionals and small businesses alike, this is one reason the current employment law landscape can feel uncertain.

What Could These Changes Mean For Employers?

If implemented, these statutory sick pay reforms could have several implications for employers and HR teams. Removing waiting days would mean employees receive statutory sick pay from the first day of absence.

For employers, this could lead to increased short-term absence costs, particularly for shorter periods of illness.

Policy and Process Updates

Many organisations’ sickness absence policies currently reference waiting days before statutory sick pay becomes payable.

These policies may need to be updated if waiting days are removed.

Employers may also need to review:

• Absence reporting procedures

• Payroll systems

• Manager guidance on sickness absence

Greater Focus on Absence Management

With statutory sick pay potentially starting earlier, organisations may place greater emphasis on clear absence management processes.

This includes:

• Accurate sickness reporting

• Consistent documentation

• Early conversations with employees about health and wellbeing

Effective absence management will remain an important part of supporting employees while maintaining operational stability.

What Should Employers Do Now?

While some elements of statutory sick pay reform are still subject to consultation, there are practical steps employers can take now.

1. Review sickness absence policies: Check how your policies reference statutory sick pay and waiting days.

2. Ensure managers understand current rules: Many managers are not fully familiar with statutory sick pay requirements. Training can help ensure processes are applied correctly.

3. Monitor government updates: Employment law reforms often evolve as consultations progress. Staying informed will help businesses prepare calmly and proportionately.

4. Strengthen absence management processes: Clear documentation, fair procedures and consistent decision-making will remain important regardless of legislative change.

A Quick Note on The Employment Rights Act

You may still see these reforms referred to as the Employment Rights Bill, but the legislation is now the Employment Rights Act 2025.

It was known as the Employment Rights Bill while it was progressing through Parliament. Once it completed the parliamentary process and received Royal Assent, it became the Employment Rights Act 2025.

Although the Act is now law, not every change takes effect straight away. Some measures will come into force later, with further detail still to be set out in regulations and guidance.

Need HR Support?

The proposed statutory sick pay changes are one of the most practical elements of the Employment Rights Act 2025 reforms. If implemented, they could extend eligibility for SSP and introduce payment from the first day of sickness absence.

For employers, the key is understanding which changes are confirmed, which remain under consultation, and how organisational policies may need to evolve over time.

If you’re a business trying to navigate these changes, BloomHR can help. Contact us for more information.