29/07/2025
❕ More Workers to Qualify for Sick Pay Under Government’s “Making Work Pay” Plan ❕
Big changes are on the horizon for Statutory Sick Pay (SSP) in April 2026, and they’re set to make a real difference for millions of workers across the UK. Under the government’s new “Making Work Pay” initiative, the Lower Earnings Limit for SSP is being scrapped — meaning more people will now receive financial support if they fall ill and can’t work.
This is expected to benefit an additional 1.3 million employees who were previously excluded simply because they didn’t earn enough. For many low-paid workers, this could bring a welcome layer of financial security and peace of mind.
What’s Changing? 🤔
Right now, employees must earn above a certain threshold (the Lower Earnings Limit) to qualify for SSP. If they don’t, they’re not entitled to any statutory sick pay — leaving many without support when they’re unwell.
From April 2026, that earnings threshold disappears. Whether someone earns £10 a week or £500, they’ll be eligible!
SSP will be calculated at 80% of the employee’s average weekly earnings, capped at a flat rate of £118.75 — whichever is lower.
Why It Matters 👉
This is more than just a policy tweak — it’s about treating workers fairly. Too many people have had to make the tough choice between getting paid or getting better. With the earnings limit gone, low-paid workers can recover without the added stress of lost income.
Employers will feel the impact too. With more staff qualifying for SSP, their costs might go up. But there’s a silver lining — SSP will now kick in from day one of sickness, rather than after a three-day wait. The hope is that by supporting employees early, we’ll see a drop in long-term sickness absence and a boost in overall workplace health.
Preparing Payroll Systems for SSP Changes ❕
⁉️ Here's what to consider:
Ensure your software is up to date so it no longer checks for minimum earnings before paying SSP.
Make sure SSP starts from day one of sick leave, not after three days.
Tell your team about the new rules, especially those who didn’t qualify before.
Plan for extra costs — low-paid staff will now get SSP, which could affect budgets.
Check everything works — test your system and speak to your payroll provider if needed.
👉 At Southern Payroll Solutions, we're here to make these SSP changes seamless. We’ll work closely with your business to ensure compliance, clarity, and confidence in your payroll processes — all with our signature personal touch.
