What the April 2026 sick pay changes mean for your business

Helping you understand the new SSP rules and protect your bottom line.

As a small business owner, you might assume that Statutory Sick Pay is one of those things that just ticks along in the background.

Since April 2026, that's no longer the case.

Two changes to SSP came into force at the same time, and together they've quietly shifted how much absence costs you.

If your processes haven't been updated, you could already be overpaying or underpaying without realising it.

Here's what you need to know and what to do about it.

What's actually changed?

On 6 April 2026, two updates to Statutory Sick Pay took effect.

First, the old waiting days have been scrapped. Previously, SSP didn't kick in until an employee had been off for four days. Now it's payable from day one of any illness.

Second, the lower earnings limit has been removed. Staff who previously earned too little to qualify for SSP are now eligible.

Both changes apply at the same time. The result is that more of your team can claim sick pay, and they can claim it earlier than before.

Common myths vs reality

There are a few assumptions I'm hearing from business owners that are worth clearing up.

"My team rarely goes off sick, so this won't affect me."

It might not hit you hard straight away. But the removal of waiting days means even a single day off now carries a cost. If you have a handful of one or two-day absences across your team each month, that adds up over a year in a way it simply didn't before.

"Only full-time staff on decent salaries get SSP."

Not any more. The lower earnings limit is gone. If you employ anyone on variable hours or lower-paid contracts, they're now included. You may be paying SSP to people who were previously outside the threshold entirely.

"My payroll software will have picked this up automatically."

Possibly. But it's worth checking rather than assuming. If your payroll system hasn't been updated to reflect the removal of waiting days and the earnings limit, you could be creating a compliance risk. Or you could be overpaying without spotting it.

The financial picture

Under the old rules, there was a built-in buffer. Four waiting days meant short absences didn't cost you anything in SSP terms. Lower-paid workers fell below the earnings threshold.

That buffer is gone now.

Every eligible worker who phones in sick on a Monday morning generates a cost from day one. For businesses with a mix of full-time and part-time staff, the change in exposure can be meaningful.

It's not unmanageable. But if you haven't adjusted your processes, those costs build up quietly over time.

How it plays out day to day

You may notice more short absences appearing in your records. One or two-day absences that previously went unrecorded (because they didn't trigger any SSP) now have a financial consequence.

In a small team, even a slight uptick in absence creates pressure. The people who are in work pick up the slack. Managers scramble to cover gaps at short notice.

And here's the bit that often gets missed: your managers need to feel confident having early conversations about attendance. Not disciplinary ones. Just calm, consistent check-ins that show you're paying attention to patterns. Most small businesses don't have that built into how they operate, and it shows when absence starts creeping up.

Five things to review right now

If your sickness absence processes were set up before April 2026, they need a refresh. I'd start with these areas.

1. Your payroll setup

Confirm that your payroll system reflects both changes: no waiting days and no lower earnings limit. Getting this wrong in either direction creates problems. Underpaying puts you at compliance risk. Overpaying eats into your margins.

2. Your sickness absence policy

Dig out your current policy and read it through. If it still mentions waiting days or a minimum earnings threshold, it's out of date. Your team and your managers need to be working from the same, accurate version. An outdated policy causes confusion and leaves you exposed.

3. Return-to-work conversations

A brief, informal chat after every absence is one of the most effective tools available to you. It doesn't need to be a formal meeting. It just needs to happen consistently, every single time someone comes back. When it's routine, it stops feeling like a big deal for everyone involved.

4. How you're tracking absence

If you're not recording absence data consistently, you won't spot patterns until they've already become a problem. It doesn't need to be complicated. A simple, reliable record that you actually use is enough.

5. Your managers' confidence

Managers are the first people to notice when absence increases. But many don't feel equipped to have those early conversations. They either avoid them altogether or jump straight to something formal. Neither helps. A bit of guidance on how to handle attendance discussions calmly goes a long way.

Questions worth asking yourself

Before you move on to the next thing on your to-do list, it's worth pausing on a few of these.

• Has your payroll provider confirmed that both SSP changes are reflected in your system?
• When did you last read through your sickness absence policy? Does it match the current rules?
• Do your managers know what a good return-to-work conversation looks like?
• Are you actually recording absence data in a way that lets you spot trends?
• If a pattern of short-term absence developed in your team tomorrow, would you know about it quickly enough to act?

How your HR consultancy services in Thanet can help

An experienced HR consultant can look at your sickness absence policy, tighten up your attendance management processes, and make sure your managers feel confident handling absence conversations before small issues grow.

I help businesses stay compliant with the current rules while reducing the cost risk that comes with getting any of this wrong. Whether you need a full policy review or just a second pair of eyes on your processes, I can tailor the support to what your business actually needs.

 

Let's have a chat

If you haven't revisited your absence processes since April, now's a good time to do it. As an outsourced HR consultant in Thanet, I work with small businesses to get this stuff sorted properly, without overcomplicating it.

Get in touch for a confidential conversation and I'll talk you through how I can help.