Ensure You and Your Software Can Effect SSP Changes from April 2026

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There are two main Statutory Sick Pay (SSP) changes from April 2026:

1.     The removal of Waiting Days meaning SSP is payable from the first full Qualifying Day – referred to as ‘SSP from day 1’; and

2.     The removal of the criterion that eligibility depends on earning at or above the Lower Earnings Limit (LEL) for National Insurance purposes.  SSP will either be payable at the statutory rate or 80% of Average Weekly Earnings if this is lower

These two ‘simple’ changes have major impacts for both employers and software and ICB highlights issues that need to be considered now:

Employers

ICB presents the following consideration bullet points for members:

  • The changes affect the statutory entitlement to be paid.  They do not affect the contractual entitlement.  However, both sick and occupational sick pay policies will need to be revised, especially if it refers to the statutory scheme or aligns with the Waiting Days that are to be removed;
  • There are also transitional protections in place that will prevent a worker being potentially disadvantaged from the revised SSP scheme.  These need to be factored into processes and, possibly, communicated to workers;
  • SSP Gov.UK guidance and, hopefully, HMRC’s Statutory Payments Manual, will be updated on 06 April 2026;
  • The SSP1 form will also be updated on 06 April 2026; and
  • The rate of SSP will increase to £123.25 per week from 06 April 2026 

Software

ICB presents the following consideration bullet points for members:

  • If an occupational sick pay scheme is to be amended, this will need to be reflected in processes and implemented in payroll software.  Payroll software will make statutory changes but it will not make changes to provisions that are contractual;
  • Check that your payroll software provider is aware of the rule changes, particularly the calculation of the 80% rule where earnings are less than the LEL;
  • Check with your software provider they are aware of the transitional protections and ask whether these will be facilitated in their product – and how;
  • Check with your payroll software provider that they will be updating their weekly rate of SSP from 06 April 2026;
  • All these payroll software checks should prompt employers / clients to review that workers have the correct Qualifying Days assigned to them;
  • The SSP calculating facility will be removed from HMRC’s Basic Paye Tools; however
  • The Gov.UK SSP calculator will be updated on 06 April 2026

For Bookkeepers

Wages Wednesdays are the best place to keep updated with all the changes you need to know. February’s webinar will cover covers employer and software readiness for these major SSP changes.

There are two changes to the SSP rules from 06 April 2026 and these apply UK-wide.  However, these rule changes have many implications and ICB advises members think of all eventualities.  In particular, the interaction with any occupational sickness schemes and getting these in place in payroll software by the start of the new tax year.

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