Several changes to employment law take effect on 6 April 2026. According to a recent Acas survey, employers believe that reforms being made to Statutory Sick Pay (SSP) will have the biggest impact in the workplace.
On 25 March 2026 the final set of regulations were made to implement the new SSP provisions.
Key SSP changes from 6 April 2026
- No waiting days: SSP will be payable from the first day of sickness, rather than from day four.
- Removal of the Lower Earnings Limit: SSP eligibility will no longer depend on earnings, meaning the lowest-paid workers will now qualify.
- New rate calculation: Instead of a fixed weekly amount, employees will be entitled to receive the lower of the standard weekly SSP rate (which will be £123.25 from 6 April 2026) or 80% of their normal weekly earnings.
In the ACAS survey, respondents were asked which three of a list of new law changes in the Employment Rights Act 2025 they thought would have the biggest impact in their workplace. 43% of employers said that workers getting sick pay for the first day of illness, rather than the fourth day, would have the biggest impact on them. 36% of workers also listed it as their biggest impact too.
What the changes mean in practice
For employers who already have contractual sick pay schemes that kick in on day one, the practical impact will be limited. However, for others – particularly those operating in sectors with lower-paid workforces – the combined effect of these changes is likely to substantially increase costs. The Government’s economic analysis suggests the additional SSP payments made by employers are expected to cost around £400 million per year.
Are you prepared?
Employers have been preparing for the changes by checking that their payroll and HR systems, and sickness absence policies, have been updated to reflect the changes. It is also worth checking other policies and employment contract clauses for references to SSP. Line managers should be briefed in the next week or so, to ensure they are managing and recording the start of sickness absence appropriately.
Will day one SSP affect absence levels?
It will be interesting to see whether more generous sick pay entitlements result in higher levels of short-term sickness absence. Alternatively, earlier access to paid leave may help employees recover from illness more quickly and, in turn, reduce the overall duration of absences.
For a list of the other changes coming in on 6 April 2026 please refer to our blog and checklist.
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