What’s Changing in SSP?

1. SSP Eligibility Expanded

• The Lower Earnings Limit (LEL) of £123/week will be removed.
• This means low-income, part-time, and casual workers will now qualify for SSP.
• Source: Changes to sick pay will help people stay in work and grow economy - GOV.UK

2. SSP Pay Structure Updated

• Employees will receive either:
  
  • 80% of their average weekly earnings, or
  • The flat rate of SSP (£118.75/week from April 2025),
  • Whichever is lower.

• Source: Making Work Pay: Strengthening Statutory Sick Pay

3. SSP Available from Day One

• The current three-day waiting period will be eliminated.
• SSP will be paid from the first day of sickness absence.

What Risks Should Employers Be Aware Of?

• Increased SSP claims due to broader eligibility.
• Higher short-term costs from paying SSP from day one.
• Administrative burden in tracking and managing absences.
• Potential rise in short-term absences due to easier access to SSP.
• Presenteeism risk if incentives discourage legitimate sick leave.
• Cultural tension if policies aren’t perceived as fair or supportive.

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Estimated Cost Impact for SMEs

Here’s how to estimate the financial impact of the new SSP rules:

Example Cost Breakdown (for SMEs with 10–50 employees)

These figures are based on:

· SSP rate: £17/day

· Average absence: 5 days/year per employee

· Admin time: 1–3 hours/month

Try the SSP Cost Estimator

Want to know what the SSP changes could cost your business? This tool lets you input your own employee numbers, absence rates, and costs to get a customized estimate instantly.

Download the SSP cost estimator tool here

Smart Strategies to Prepare

 1. Use Smart HR Tools

• Automate absence tracking and SSP calculations.
• Monitor patterns and flag potential burnout risks.

 2. Train Managers for Supportive Conversations

• Encourage empathy and consistency.
• Avoid disciplinary tones—focus on recovery and wellbeing.

 3. Promote Health & Wellbeing

• Offer mental health resources, flexible work options, and wellness days.
• Reduce avoidable absences through proactive care.

 4. Review Policies & Contracts

• Update sickness policies to reflect SSP changes.
• Ensure employees understand their rights and responsibilities.

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Creative Incentive Ideas (Beyond SSP)

1. No Absence Bonus Scheme

• Reward employees with perfect attendance.
• Use tiered rewards to avoid pressure or stigma.
• Combine with wellbeing support to prevent presenteeism.

2. Wellbeing Points System

• Employees earn points for health-related activities.
• Redeem for perks like gift cards or extra time off.

3. Team-Based Recognition

• Reward teams that maintain performance during absences.
• Encourages collaboration and mutual support.

4. Flexible Return-to-Work Plans

• Offer phased returns, remote options, or light duties.
• Supports recovery and reduces relapse.

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How to Estimate Your Own Costs

To build your own cost model:

1. Define your employee count and average absence rate.
2. Use SSP rate (£118.75/week or ~£17/day) to calculate per-absence cost.
3. Estimate admin time and hourly rate for HR tasks.
4. Factor in indirect costs like productivity loss or temp cover.
5. Adjust for growth, inflation, and policy changes.

Conclusion

The April 2026 SSP reforms are a turning point for UK employers. With the right tools, mindset, and preparation, businesses can turn compliance into a culture of care, building a healthier, more resilient workforce while maintaining trust and productivity.

Talk to us today on how we can support you on this or any other topic.

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