Statutory Sick Pay Overhaul Set for April 2026 Implementation
Significant changes to Statutory Sick Pay (SSP) regulations are scheduled to take effect from the start of the new tax year in April 2026. These reforms are designed to enhance financial protection for employees during periods of illness while simultaneously aiming to reduce the transmission of infections within workplace environments.
Ministerial Assurance on Non-Discriminatory Policies
In response to concerns regarding discretionary sick pay arrangements, Dame Diana Johnson, the Minister of State at the Department for Work and Pensions, has issued a clear directive to employers. She emphasised that companies must rigorously review their policies to ensure they "are not discriminatory", particularly against disabled workers.
The Labour MP elaborated in a written statement, outlining the statutory obligations and discretionary options available to employers. "Employers have a statutory duty to pay Statutory Sick Pay to employees who satisfy the qualifying criteria," she noted. "They can offer occupational or discretionary sick pay at a higher rate than the statutory minimum, but may place limits on eligibility or duration."
Key Changes to SSP Eligibility and Payment Structure
From April 6, 2026, the revised SSP framework will introduce several critical modifications:
- SSP will become accessible to all eligible employees from their very first full day of sickness absence, irrespective of their earnings.
- The payment will be calculated at 80% of an employee's average weekly earnings or a weekly flat rate of £123.25, whichever is lower.
- This marks a departure from the current system, where workers must be ill for more than three consecutive days and earn an average of at least £125 per week to qualify.
Employers are being urged to proactively review their sickness absence policies and ensure their payroll providers are fully prepared for these impending changes. SSP represents the legal minimum requirement, but individual company policies may include additional support or specific stipulations.
Support and Advice for Disabled Employees
Dame Diana Johnson also highlighted the availability of free and confidential advice for disabled workers who have concerns about their employer's sick pay policies. Employees can contact ACAS (the Advisory, Conciliation and Arbitration Service) for guidance on any aspect of employment law, including company sick pay arrangements.
Charity organisation Scope provided further context, noting: "Some employers may treat sickness differently if it is related to disability, but most do not. If your employer does not know that you are disabled, they will treat you as being 'ill'. This means that their usual sick leave policy will apply to you." They added that most policies do not automatically grant time off for medical appointments unless the disability is disclosed.
The minister reinforced that while employers are not mandated to offer occupational sick pay, they must still pay SSP to eligible employees. When establishing discretionary sick pay policies, organisations must ensure compliance with employment laws and the Equality Act 2010, avoiding any form of discrimination against disabled workers.
