Major Sick Pay Overhaul Takes Effect: New Rules for Employees and Employers
Significant changes to Statutory Sick Pay regulations have officially come into force this week, marking a substantial shift in employment rights across the country. The new rules, which took effect on April 8, 2026, represent the most comprehensive update to sick pay provisions in years.
Key Changes to Statutory Sick Pay
The most notable modifications include the removal of the Lower Earnings Limit, meaning Statutory Sick Pay will now be available to all eligible employees regardless of their income level. Additionally, the traditional three-day waiting period has been eliminated, allowing payments to commence from the very first full day of sickness absence.
According to official government statements, these changes are designed to ensure that lower-paid employees have enhanced financial security when they fall ill. The reforms also aim to help minimize the spread of infections within workplaces by removing financial pressure that might otherwise compel sick employees to return to work prematurely.
Implementation of the Employment Rights Act
These changes form part of the broader Employment Rights Act, which Niall Mackenzie, Acas chief executive, describes as "a major shake-up in employment law that will impact businesses and workers across the country."
"It's crucial that both employers and employees get to grips with the new rules," Mackenzie emphasized. "Acas remains best placed as independent experts helping everyone at work throughout this period of change. We will be working with employers, workers and their representatives on implementation and updating our advice and training accordingly."
Complete List of Statutory Sick Pay Changes
- Statutory Sick Pay will be available to all eligible employees regardless of their earnings (the Lower Earnings Limit has been removed)
- Statutory Sick Pay will be payable from the first full day of sickness absence (the three-day waiting period has been eliminated)
- The rate of Statutory Sick Pay for all employees will be calculated at 80% of their average weekly earnings or the flat weekly rate, whichever is lower
April 2026 Updates
From April 1, 2026, minimum hourly pay rates have increased to £12.71 for workers aged 21 and over, £10.85 for ages 18-20, and £8.00 for under‑18s and apprentices. Statutory parental pay has risen to £194.32 per week, while statutory sick pay has increased to £123.25 per week, with SSP now payable from day one of absence.
October 2026 Changes
Further provisions of the Employment Rights Act will take effect in October 2026, making "fire and rehire" practices more difficult, particularly for changes to core employment terms such as pay. Employers will need to provide stronger justification and engage in more robust consultation processes before imposing contractual changes on their workforce.
Government Perspective
Minister for Employment, Dame Diana Johnson, stated: "No one should ever have to choose between their health and earning a living. For too long, sick employees have had to make the impossible decision between losing out on a day's pay or returning to work while ill. Today's landmark changes will support employees to recover while providing businesses with the peace of mind that their workforce can return to work healthier and more productive."
The comprehensive reforms represent a significant step toward improving workplace protections and ensuring that employees no longer face financial hardship due to illness. Both employers and workers are encouraged to familiarize themselves with the new requirements to ensure smooth implementation across all sectors of the economy.
