Statutory Sick Pay Is Changing, What Accountants Need to Know Before April 2026

Statutory Sick Pay is getting a proper shake-up from 6th April 2026. We have known the headline changes for a while, but one big question lingered like an unanswered client email from 2019.

“What happens to employees who are already off sick when the rules change?”

Good news, we now have clarity. Better news, it is actually fairly sensible. Let’s walk through it in plain English, without the legislative waffle.

The Big SSP Changes From 6 April 2026

First, a quick refresher on what is changing.

1. The Lower Earnings Limit Is Going

The Lower Earnings Limit (LEL) will be removed completely.

What this means in real life:

• Employees will no longer need to earn above the LEL to qualify for SSP.

• Even lower-paid or part-time staff will be eligible.

Yes, this is a big shift. No, it is not optional.

2. SSP Becomes Earnings-Based (With a Safety Net)

SSP will be paid at:

• 80 percent of Average Weekly Earnings (AWE), or

• The flat SSP rate, whichever is lower.

So high earners will still be capped, and lower earners will receive a more proportional amount.

3. Waiting Days Are Scrapped

Waiting days are heading for the bin.

From April 2026:

• SSP will be payable from the first full day of sickness absence.

• No more three-day limbo period.

  
  

The Missing Piece, What About People Already Off Sick?

Until now, this was the big unknown. Transitional protections have now been confirmed, and they are actually quite fair.

Employees Below the Old LEL

• Anyone earning below the old LEL who is off sick on or after 6 April 2026 will now qualify for SSP.

• Even if they were previously excluded.

  
  

Employees Serving Waiting Days on 6 April 2026

• If waiting days are in progress on 6 April 2026, SSP starts from that date.

• No need to restart or reassess the absence.

  
  

Employees Already Receiving SSP

This is where transitional protection kicks in.

• Employees already receiving SSP before 6 April 2026 will not see their pay reduced.

• They will continue to receive the uprated flat rate until:

  
  

  • They return to work

  • Their SSP entitlement runs out

  • Their employment ends

    
    

No sudden drops. No awkward conversations.

The £125.00 to £154.05 Earnings Band

For employees earning between £125.00 and £154.05 per week:

• If they were already off sick and receiving SSP before 6 April 2026

• They will continue to receive the flat rate of £123.25

• This applies for the duration of their continuous sickness absence

• 
  

Again, the key theme here is protection and continuity.

How SSP Will Be Calculated Going Forward

Now for the bit your payroll software, and your sanity, will care about.

Average Weekly Earnings

• SSP for those earning below the flat rate will be based on 80 percent of AWE

• AWE will be calculated over a relevant 8-week period

• Payments must be rounded up to the nearest penny

Yes, rounded up. Not down. No, this is not a drill.

Linked Periods of Incapacity

• If sickness absences are linked within 56 days

• The original AWE calculation is reused

• You do not recalculate for each linked period

  
  

This keeps things consistent and avoids recalculating SSP.

What Accountants Should Be Doing Now

April 2026 might feel miles away, but this change will ripple through payroll processes.

A few sensible steps now:

• Review SSP policies with clients, especially those with low-paid staff

• Check payroll software roadmaps and SSP handling logic

• Prepare client comms early, because this will raise questions

• Flag cashflow implications for employers with high sickness levels

  
  

And yes, expect clients to assume this is already live the moment they read a headline.

Final Thought

This is one of the biggest SSP reforms in decades. It expands access, removes waiting days, and introduces earnings-based fairness without pulling the rug out from under existing cases.

Handled well, it is manageable. Left until the last minute, it will be chaos with a payslip.

If you are hearing anything wildly different to the above, simply put, someone has misread the guidance. The confirmed position comes straight from HMRC and the accompanying legislation.

If you want help translating this into something clients actually understand, you know where we are.

As always, feel free to reach out to Austin direct on austin@yourpayrollmanager.co.uk