Statutory Sick Pay Reform: The One Change Every Employer Must Get Right

Some employment law changes are complex, technical, and easy to overlook.

This is not one of them.

From April 2026, two fundamental changes to Statutory Sick Pay came into force simultaneously. Together, they reshape how employers manage sickness absence at the most basic level.

And unlike many other reforms, this one applies universally.

Every employer. Every sector. Every workforce.

What Has Changed

The first change is the removal of waiting days. Statutory Sick Pay is now payable from the first day of sickness absence, rather than from day four.

The second is the removal of the Lower Earnings Limit. Previously, employees earning below the threshold (around £123 per week) did not qualify for SSP. That restriction no longer applies.

The result is simple in principle but significant in practice: all employees are now eligible for SSP, and payment starts immediately.

For many organisations—particularly those employing part-time or lower-paid staff—this creates obligations that did not previously exist.

The Immediate Risk: Outdated Policies

The most obvious issue is documentation.

Any sickness absence policy that still refers to waiting days is now incorrect. Any policy that suggests certain employees do not qualify for SSP based on earnings is out of date.

This is more than a technical oversight.

Where policies misstate statutory entitlements, employers expose themselves to:

• unlawful deduction from wages claims

• breach of contract arguments

• employee relations issues where trust is undermined

In short, if your policy does not reflect the law, it is not just ineffective—it is a liability.

The More Subtle Shift: Cost and Behaviour

The more interesting impact is not legal, but behavioural.

Historically, the three waiting days created a natural buffer. Short-term absence—particularly one or two days—did not trigger a statutory payment obligation. That influenced how absence was perceived and managed.

That buffer no longer exists.

Every absence now carries a direct cost from day one.

This changes the dynamic for line managers. Decisions around short-term absence, which may previously have been handled informally or with limited scrutiny, now sit within a different financial and operational context.

It is not about assuming increased absence or misuse.

It is about recognising that the cost profile of absence has changed, and management approaches need to adapt accordingly.

Absence Management: Where the Real Exposure Sits

Most organisations do not struggle because they lack policies.

They struggle because those policies are not consistently applied.

The removal of waiting days brings short-term absence into sharper focus. Single-day absences, repeated intermittent absence, and patterns of low-level absence become more visible—not just operationally, but financially.

This places greater importance on:

• consistent return-to-work discussions

• clear absence trigger points

• early identification of patterns

• confident, well-trained line management

Without these elements, absence becomes reactive rather than controlled.

And under the new SSP framework, that lack of control becomes more expensive.

The Overlooked Impact: Lower-Paid and Part-Time Workers

The removal of the Lower Earnings Limit is often underestimated.

For employers with lower-paid or part-time workforces, this represents a genuine shift in exposure. Individuals who previously fell outside SSP eligibility are now fully within scope.

This is not just a payroll adjustment. It changes:

• absence cost modelling

• workforce planning assumptions

• and, in some cases, how absence is managed operationally

Organisations that have not factored this into their planning may see unexpected cost increases over time.

This Is a Simple Fix—If You Act Early

One of the defining features of this reform is its clarity.

There is no ambiguity around what the law requires. There is no complex balancing test. The obligation is straightforward, and the scope is universal.

That makes it one of the simplest areas of employment law compliance to address.

But only if it is addressed.

Because while the legal change itself is simple, the consequences of ignoring it—outdated policies, inconsistent practice, and increased cost exposure—are not.

The Nexus View

This is not a headline-grabbing reform.

But it is one of the most operationally significant.

It sits at the intersection of payroll, policy, and day-to-day management. And it affects every organisation, regardless of size or sector.

The employers who get this right will not just be compliant. They will have tighter control over absence, clearer processes, and better-informed managers.

Those who do not will find that a “simple” change creates avoidable risk.

If your sickness absence policy has not been reviewed this year, it should be.

At Nexus Employment Consultancy, we support employers with policy reviews, absence management audits, and practical implementation—ensuring your processes are compliant, consistent, and commercially effective.

If you would like to talk through what a review involves, feel free to get in touch or book a confidential discussion.