ERA reforms in depth: Statutory sick pay

These reforms were some of the most imminent changes set out in the Act – they came into force on 6 April 2026. Where an employee’s sickness absence started before 6 April 2026, the employer should make sure to check the transitional provisions outlined in The Employment Rights Act 2025 (Commencement No. 3 and Transitional Provisions) Regulations 2026 in order to confirm the employee’s eligibility for SSP.

Previous position

An employee or worker (where eligible for SSP) who was absent from work due to sickness was not entitled to receive SSP until the fourth qualifying day of their absence. They also had to earn above the Lower Earnings Limit (£125 per week until 5 April 2026) in order to be eligible.

What has changed?

SSP entitlement now starts on the first qualifying day of absence, rather than the fourth day. This will significantly impact on organisations that experience high levels of short term absences, many of which would not have previously qualified for SSP.

In addition, SSP is now available to those who earn below the Lower Earnings Limit. The rate of SSP has also changed – individuals should now receive a flat rate of SSP (initially £123.25 per week from 6 April 2026) or 80% of their normal weekly earnings, whichever is lower.

Depending on your current sick pay offering, there are a range of permutations to think through.

We have picked out below some considerations for employers:

• Employers who do not offer ‘day one’ company sick pay may see an increase in short term absences as a result of SSP becoming available from the first day of absence, albeit the government recognises that some employees may be worse off as a result of these changes. Proactive absence management will be one of the best ways to help to mitigate the risk of increased short-term absences. Effective return to work check-ins or meetings with employees returning from sick days will take on increasing importance.
• Employers who offer company sick pay should review their contractual terms and any sick pay policy documentation to see how these dovetail with SSP eligibility rules and to determine whether any changes to terms or policies are required.
• Your payroll and time & attendance processes need to reflect the amended SSP eligibility rules. If you have not already done so, make sure that you liaise with your payroll provider / team to discuss what procedural changes are required.