SSP changes April 2026 – what UK SME employers need to do now to comply

Don’t get caught short with SSP changes April 2026 and face claims for unlawful deduction of wages

SSP changes from 6 April 2026, in two important ways. the changes in SSP or statutory sick pay for SME employers, are not minor “payroll tweaks”. 

They affect what your managers say to staff, what your handbook and contracts promise, and how confident you can be that your sickness absence process is legally compliant.

The first change is the one most businesses will feel immediately: the removal of SSP waiting days.

Waiting days are removed: SSP becomes payable from the start of absence

Many employers still work on the long-standing assumption that SSP only becomes payable after a few days of sickness. From April 2026, that position changes. SSP is expected to be payable from the first qualifying day of sickness absence (assuming the employee meets the qualifying conditions).

The phrase “qualifying day” matters. SSP is not automatically paid for every calendar day; it is usually paid for the days an employee normally works, based on how your payroll is configured. For full-time staff this is often straightforward. For part-time staff, shift workers, and employees with irregular patterns, it is where mistakes tend to occur.

The risk for SMEs is not just a small increase in SSP cost for short absences. The bigger issue is compliance and consistency. If your handbook, template letters, or managers’ explanations still reflect the old “day four” approach, you increase the likelihood of underpayments, disputes, and grievances.

The LEL test is removed: more people will qualify for SSP

The second change is equally significant. From April 2026, the Lower Earnings Limit (LEL) threshold is expected to be removed as an eligibility gateway for SSP. Historically, many employees did not qualify for SSP because their earnings were below the LEL. That is due to change, bringing more low-paid and part-time employees into scope.

In practice, SMEs tend to get caught out in two places. First, managers often rely on outdated rules of thumb, such as assuming someone “won’t qualify because they’re part-time” or “don’t earn enough”. Second, older contract wording and handbook statements frequently link SSP eligibility to meeting the LEL, which will no longer be accurate.

As a result, more of your workforce may become eligible for SSP, including employees on lower weekly earnings, employees who have reduced their hours, and some workers on variable patterns (depending on how average earnings are assessed).

How SSP will be worked out under the new approach

Once the LEL gateway is removed, SSP needs a fair way of applying to lower earners. The expected approach is that SSP will be paid as the lower of:

• 80% of the employee’s normal weekly earnings, or
• the standard SSP flat rate (set by Government and uprated periodically).

For many full-time employees, the flat rate will still be the amount paid. The change is more noticeable for lower earners where 80% of earnings may be lower than the flat rate, meaning SSP becomes proportionate.

Your payroll system will usually do the calculation, but only if the set-up and inputs are correct. Irregular hours, inconsistent time recording, or changes in working patterns that are not updated promptly are common reasons SSP is calculated incorrectly.

What SMEs need to update to remain legally compliant

These changes are a classic example of where employers focus on payroll and forget documentation. In practice, you need both aligned.

Your absence policy and handbook should be updated so they no longer refer to SSP starting on the fourth day or link eligibility to the LEL. The policy should also explain the interaction between SSP and any company sick pay you offer, and it should avoid hard-coding SSP rates (which change).

Your employment contracts and written particulars should also be reviewed. Contract clauses often lag behind legislative change, especially where templates have been rolled forward year after year. Any reference to SSP waiting days or LEL eligibility needs to be removed, and fixed SSP amounts should be avoided.

If you offer Company Sick Pay (CSP), check whether your scheme is written as “inclusive of SSP” (top-up arrangements). That can still work, but it needs to be drafted carefully so it remains accurate where SSP may be calculated as 80% of earnings for lower-paid staff, and where SSP starts from day one.

Finally, this is a process change, not just a document change. Payroll settings may need reconfiguration, template letters and forms need updating, and line managers need a short briefing so they do not inadvertently give employees outdated information.

How KeyHR can Support your business 

This is exactly the type of compliance update we manage for SME employers. KeyHR can take the work off your plate by:

Reviewing your current sick pay and absence arrangements, including any company sick pay scheme rules
Updating your sickness absence policy and employee handbook wording so it reflects the April 2026 SSP changes

Reviewing and amending contract clauses and written particulars to remove outdated SSP references and reduce compliance risk
Providing updated template letters and manager guidance notes so your team applies the new rules consistently

The benefit is not just “having the right documents”. It is confidence that your managers are saying the right thing, your payroll is applying SSP correctly, and your business is protected from avoidable disputes.