SSP Changes: What you need to have in place NOW

What has changed?

Sick pay from day one – Since 6 April 2026, eligible staff receive SSP from the first full day of sickness. The long-standing three waiting days have been removed, so sick pay no longer starts on day four. This applies to agency workers booked onto assignments as well as permanent employees.

Eligibility for low-paid workers – The reform removes the Lower Earnings Limit, which was £125 a week. That means staff are no longer excluded from SSP simply because of lower earnings. This widens entitlement to more low-paid and part-time workers. For agency workers, SSP is due when they are booked onto an assignment; workers between assignments still remain outside SSP entitlement.

New calculation method – SSP now works on a dual-rate basis. Employers must pay the lower of 80% of normal weekly earnings or the statutory flat rate. The flat weekly rate for 2026 to 2027 is £123.25.

Transitional protection – Employees who were already on SSP when the new rules took effect continue to receive transitional protection during that continuous absence. Linked absences within 56 days still count as one continuous period.

Fair Work Agency oversight – The wider enforcement environment is also changing. The Fair Work Agency is being established from 7 April 2026 to bring together enforcement of key employment rights into one place, including existing labour market enforcement functions.

Why these changes matter for you

Removing waiting days and the Lower Earnings Limit broadens the pool of workers entitled to SSP. The Government reports that up to 1.3 million employees earn below the previous Lower Earnings Limit and are brought into entitlement by the reform. For employers and labour providers, that means more short-term sickness cases will now trigger SSP from the first qualifying day, and payroll teams need to apply the correct rate from the start of the absence.

This has practical consequences. Payroll systems, absence reporting, contracts and internal guidance all need to reflect the live rules, not the old ones. If documents still refer to waiting days or older earnings thresholds, they are now out of date. For businesses using agency labour, it is also important that assignment terms clearly reflect when SSP applies and when it does not, especially for workers between assignments.

How Rapid Personnel can help

At Rapid Personnel, we have turned these changes into a practical process for clients. Our role is not just to explain the legislation, but to help employers make sure the right policies, payroll settings and communications are in place now. We have built our own guidance around the changes so clients can move from awareness to action with clarity.

Here are the practical steps we recommend now:

Review and update policies – Sickness and absence policies, contracts and staff handbooks should now reflect day-one SSP and wider eligibility. Any references to waiting days or the Lower Earnings Limit should already have been removed.

Check payroll systems – Payroll processes should now be set up to handle the live dual-rate calculation correctly and apply transitional protection where needed. Employers should be confident that the right SSP amount is being triggered from the first qualifying day.

Train and communicate – Managers should understand when SSP begins, how eligibility works for agency workers, and how linked absences should be handled in practice. Workers should also know what the rules now look like.

Plan for increased costs – Businesses should already be assessing the financial impact of broader SSP eligibility and day-one payment, especially where short-term absence is common or lower-paid and agency labour forms a large part of the workforce.

If you need support reviewing whether your payroll, policies or worker communications are fully aligned, Rapid Personnel can help.