The Employment Rights Bill has now achieved Royal Assent and, from 06 April 2026, Regulations under the 2025 Act will provide for the following SSP changes:
- The criterion to be earning at the Lower Earnings Limit (LEL) is removed and SSP will be available to all workers regardless of their level of earnings; and
- The concept of Waiting Days is removed and SSP will be payable from the first full day of sickness
These changes to the SSP regime are going to involve the need for transitional arrangements in some cases and the Department for Work & Pensions (DWP) have issued guidance to software developers so they can build these into their products. This includes provisions to ensure workers in receipt of SSP on 05 April 2026 do not see a reduction when the new rules start from 06 April 2026.
In the first instance, here are some simple situations employers may have been considering:
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Situation
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Pre 06 April 2026
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Post 06 April 2026
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Workers earning below the LEL who become eligible on 06 April 2026
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No eligibility
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Eligibility under the 2026/27 rules and SSP will be paid at 80% of Average Weekly Earnings
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Workers serving Waiting Days on 06 April 2026
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No eligibility as the first three Qualifying Days are non-payable Waiting Days
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Eligibility at the 2026/27 rate
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Linked periods of SSP entitlement
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Use the Average Weekly Earnings (AWE) calculation from the first SSP period of entitlement. SSP is payable at the 2025/26 rate
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No change. Use the AWE from the first SSP period of entitlement for linked sicknesses. The AWE is only recalculated when there is an unlinked SSP period of entitlement. SSP will be payable at the 2026/27 rate
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However, it is the complicated / transitional arrangements that will be of interest to ICB members.
Assume the example of a worker who has qualified for SSP pre 06 April 2026 and this payment is to continue into the new tax year. Potentially, depending on their level of earnings, some workers may see a reduction in their rate of SSP given the rule changes. This will be:
- Workers earning between £125.00 and £154.05 per week; and
- Sick and in receipt of SSP before 06 April 2026; and
- Continues to be off sick on 06 April 2026
However, the DWP confirms that a reduction in SSP is not the policy intention. In the above situations, the worker’s rate of SSP, inflated at the start of the 2026/27 tax year, will be protected until:
For Bookkeepers
The DWP confirms the transitional period will last no longer than 28 weeks and ICB welcomes the guidance to software developers. This ensures workers who may have been negatively impacted on 06 April 2026 will be transitionally protected.
Currently, this information is not in the public domain but has been issued to software developers only to help build their products. ICB advises members to contact their provider if they believe such transitional provisions will be necessary.
