As part of the upcoming Employment Rights Bill, the UK Government has confirmed a proposed shift in its approach to Statutory Sick Pay (SSP), as part of its broader commitment to supporting employees with health conditions and reducing barriers to workplace inclusion.
These changes signal a likely direction of travel for SSP reform starting in April 2026. Business leaders must understand what’s being proposed, and start preparing their policies and payroll processes now to avoid future disruption.
What Promoted the SSP Review?
The government’s focus on reducing economic inactivity, especially among individuals with long-term health conditions, has driven the proposed changes to SSP. According to recent figures, 2.5 million people are currently out of work due to long-term sickness, with many reporting a lack of support and flexibility from employers as a contributing factor.
In response, a roadmap was published by the Department for Work and Pensions (DWP) outlining key reforms designed to make SSP more inclusive and better aligned with modern working practices.
What Changes Will be Implemented?
The roadmap outlines several likely reforms to the SSP system:
1. Abolition of the Lower Earnings Limit (LEL)
Currently, employees must earn at least £125 per week to qualify for SSP. The proposed reform would remove this threshold, making SSP available to all employees, regardless of their income level or working pattern.
2. SSP Payable from Day One
Under the existing system, the first three days of sickness absence are unpaid. This “waiting period” will be scrapped, ensuring employees receive SSP from the first day they are off work.
3. Emphasis on Early Intervention and Return to Work
Employers will be encouraged to take a more active role in managing absence and supporting early returns. This could involve strengthening internal policies and improving access to occupational health support.
4. Wider Access to Fit Notes
Digitally accessible fit notes, introduced in recent years, are likely to become more common. These may play a bigger role in how absence is assessed, tracked and supported.
What Does This Mean for Employers?
For many businesses, these reforms represent a major cultural and operational shift. Removing eligibility thresholds and unpaid days will increase costs and require more robust processes for monitoring and managing sickness absence.
Key implications include:
- Increased Payroll Costs: More employees will be eligible for SSP.
- Policy Updates: Internal absence and sickness policies will need reviewing and aligning with any legal changes.
- HR and Payroll Coordination: Greater integration between HR and payroll will be vital to ensure compliance and transparency.
In short, SSP is no longer a “tick-box” compliance issue, it’s becoming a core part of how businesses manage people, performance and wellbeing.
How Qualitas Can Help
At Qualitas, we work closely with organisations across the UK to provide outsourced payroll services that are accurate, efficient and fully compliant with the latest legislation, including updates like SSP reform.
Our clients benefit from:
- Proactive Compliance Monitoring: We stay ahead of all legislative changes and ensure our systems and processes reflect the latest government guidance.
- Expert Payroll Support: You’ll be assigned a dedicated payroll expert who understands your business and ensures smooth delivery, every pay cycle.
- Integrated Absence Management Tools: Through our employer portal, you can log and manage sickness absence with full SSP tracking and reporting capabilities.
Get in Touch Today
Now is the time to review your internal policies, assess the cost implications, and ensure your payroll infrastructure can adapt quickly and confidently to the coming reforms.
If you’re unsure where to begin, Qualitas is here to support you.
Talk to us today about how we can help your business stay compliant and future-ready.