SSP changes from 06 April 2026 means SSP is payable to all regardless of the level of Average Weekly Earnings (AWE). The SSP non-entitlement form was amended accordingly. We outline what happens when the AWE is correctly calculated as zero.
The SSP changes from the start of the tax year 2026/27 made two fundamental changes:
1. The removal of the concept of Waiting Days; and
2. The removal of the criterion that earnings must be at or above the Lower Earnings Limit. SSP is payable at the flat rate of 80% of AWE, whichever is lower
The SSP non-entitlement form SSP1 was amended in Great Britain and Northern Ireland.
There was no change to the calculation of the AWE. This requires payroll software to look at the earnings in the period before the first day or sickness, referred to as the relevant period and includes all earnings subject to National Insurance in an eight-week period. The fact this did not change means it is possible an employee might not work in the week they are sick but still be entitled to SSP, as we have highlighted on Wages Wednesdays.
However, as has also been pointed out by members, what about the situation where an employee has no AWE in the relevant period and there is no entitlement to SSP? An employer is required to notify the employee there is no entitlement to SSP via the SSP1 – however, there is no box for the employer to tick. This means an employer is unable to tell the employee why they cannot pay SSP and allow them to make a claim for benefit, possibly the New Style Employment and Support Allowance.
For Bookkeepers
ICB is aware this issue has been highlighted to the Employment and Payroll Group (EPG) which is now the place where statutory payment issues are progressed. Hopefully, this will be escalated to the right place.
In the meantime, members want to consider indicating non-entitlement using another non-payment reason that will not make them ineligible for State benefits. Possibly, the ‘You did not tell your employer about your sickness’ will allow this, accompanied by a note that there is no other place to indicate non-eligibility to SSP. In the situations where this does apply, employees should note HMRC’s Statutory Payments Dispute team telephone number (0300 322 9422) and contact them for advice.
