Helping you prosper
What’s changing?
The key SSP changes from April 2026 are:
SSP payable from day one SSP will no longer start on the fourth consecutive day of sickness absence. Instead, it will be payable from the first day an employee is off sick. This is a major shift and will increase SSP costs for many employers, particularly those with short‑term absences.
Removal of the Lower Earnings Limit
Currently, employees must earn above a minimum threshold to qualify for SSP. From April 2026, this earnings limit will be removed, meaning SSP will be available to all eligible employees regardless of how much they earn.
New calculation method
For the 2026–27 tax year, SSP will be calculated as the lower of:
- 80% of the employee’s average weekly earnings, or
- the statutory weekly rate of £123.25
Average weekly earnings will usually be based on the eight weeks prior to the sickness absence. While this approach is intended to be fairer overall, employees earning between £123.25 and £154.06 per week may actually receive slightly less SSP under the new rules.
Who is eligible for SSP?
Despite the broader access, employees must still meet all of the following conditions to qualify for SSP:
- They have carried out work for their employer
- They are paid through PAYE
- They notify their employer of their illness within the required timeframe (either your internal deadline or within seven days)
Individuals who pay their tax through Self Assessment, such as many sole traders, are not entitled to SSP.
What employers should be thinking about now
These changes will have both cost and administrative implications. Employers may need to:
- Review absence and sickness policies
- Update payroll systems ahead of April 2026
- Budget for increased SSP costs, particularly for roles with higher short‑term absence rates
- Ensure payroll teams understand the new calculation rules
Getting this right from day one will help avoid errors, employee disputes and potential compliance issues.
How UHY can help
At UHY, we help businesses navigate changes like these with confidence. Our outsourced payroll bureau supports clients alongside our tax and accounting services, ensuring payroll remains accurate, compliant and efficient as legislation evolves. If you would like to discuss how the SSP changes will affect your business, or need support preparing your payroll processes, please contact Sarah Gibbs, Payroll Manager, on 01837 333005.
