UK Sick Pay Overhaul: New Rules Take Effect from April 6, 2026
Millions of workers across the United Kingdom will face significant changes to sick pay regulations under a major shake-up approved by the Labour Party government. The new statutory sick leave rule is set to commence on April 6, 2026, marking a substantial shift in how sickness absences are compensated.
Key Changes to Statutory Sick Pay
The Labour government previously announced these reforms during the Autumn Budget, with the changes affecting sickness absences that begin before April 6, 2026, and continue beyond that date. From this implementation date forward, statutory sick pay will be calculated as either 80% of the worker's average weekly earnings or £123.25 per week, whichever amount is lower.
Eligible workers will receive payments from the very first full day of sickness absence, as the traditional three-day waiting period is being completely eliminated. This represents a fundamental departure from previous sick pay protocols that required employees to wait before receiving compensation.
Eligibility and Calculation Methods
Under the new system, statutory sick pay will be available to all eligible employees regardless of their earnings, with the government removing the Lower Earnings Limit that previously restricted access. Workers will qualify for sick pay from April 6 if they have a qualifying day, even if they haven't completed the three waiting days by that date and earn less than the previous lower earnings threshold.
The calculation of average weekly earnings will be based on the eight weeks preceding the sickness absence, with all payments rounded up to the nearest penny. This standardized approach aims to create more consistency in how sick pay is determined across different employment situations.
Government Guidance for Businesses
The government has issued specific recommendations for businesses to prepare for these changes:
- Review and update sickness absence policies before April 6, 2026, particularly regarding references to waiting periods and earnings thresholds
- Consult with payroll providers to understand how the changes will impact existing payroll systems
- Communicate the upcoming changes clearly to management teams and all staff members
These preparations are essential for ensuring a smooth transition to the new sick pay framework and avoiding potential compliance issues once the rules take effect.
Broader Implications of the Reform
This comprehensive overhaul of statutory sick pay represents one of the most significant employment policy changes introduced by the Labour government. By removing both the waiting period and earnings limit, the reforms aim to provide more immediate financial support to workers during illness, potentially benefiting those in lower-income positions who previously might not have qualified for sick pay.
The government website explicitly states: "Statutory Sick Pay will be available to all eligible employees regardless of their earnings" and "Statutory Sick Pay will be payable from the first full day of sickness absence." These changes reflect a broader shift toward more inclusive employment protections in the UK workforce.
