Statutory Sick Pay (SSP) is changing from 06 April 2026:
1. The criterion to have earnings at the Lower Earnings Limit (LEL) is removed meaning SSP is payable regardless of the level of earnings; and
2. The concept of Waiting Days is removed meaning SSP is payable from the first full Qualifying Day
Of course, there will always be situations where a worker may be adversely affected by the changes. The Department for Work and Pensions (DWP) have produced transitional guidance which highlights three situations where protections are in place for:
1. Those newly-eligible from 06 April 2026 because of the abolition of the LEL criterion;
2. Those serving Waiting Days on 6 April 2026; and
3. Those in receipt of SSP prior to 06 April 2026 who could see a reduced entitlement because of the changes
A payroll system will calculate Average Weekly Earnings (AWE) for an eight-week period before the first day of sickness. However, see the example of ‘Lewis’ which will affect a small number of workers. He was sick for a period before 22 September 2025, was not entitled to SSP because his earnings were below the LEL and remains sick on 06 April 2025. Technically, he would be entitled to SSP on 06 April 2026 but because he has been sick continuously for 28 weeks, his AWE are calculated on earnings from 06 April 2026. As a result, he does not suddenly start to become entitled to payment.
For Bookkeepers
Note that the DWP’s final document ‘Statutory Sick Pay: Transitional Guidance’ refers throughout to the changes applying to employees. The Employment Rights Act 2025 made no changes to eligibility and this could include agency workers.
ICB anticipates the situation of a worker being sick from 22 September 2025 and still being sick 28 weeks later at the start of the tax year is going to be small. This protection is for employers and it is welcome to have this clarified.
It is sensible that there are transitional protections as we move from one regime to another. Software developers have been provided with the DWP guidance, members should consider whether these will be incorporated into payroll products.
