Long-Term Sick Pay 2026/27: Statutory vs Occupational, and What Happens When SSP Runs Out
Statutory Sick Pay only lasts 28 weeks and pays £123.25/week — far below most people's living costs. Here's how occupational sick pay schemes differ, what happens when SSP ends, and what benefits might fill the gap.
Statutory Sick Pay: The Legal Minimum
Statutory Sick Pay (SSP) is the baseline entitlement almost all employees have, regardless of employer generosity:
| SSP Detail | 2026/27 Figure |
|---|---|
| Weekly rate | £123.25 |
| Maximum duration | 28 weeks |
| Minimum average weekly earnings to qualify | £129 (Lower Earnings Limit) |
| Waiting days | First 3 "qualifying days" of sickness are usually unpaid (unless you've had SSP within the last 8 weeks for a linked period) |
£123.25/week works out to roughly £534/month — a figure that falls well short of most people's living costs, particularly anyone with a mortgage or rent to pay. This gap is the single biggest reason occupational sick pay schemes, where offered, matter so much financially.
Occupational Sick Pay: What Employers Actually Offer
Occupational (or contractual) sick pay schemes vary enormously — there's no legal minimum requirement beyond SSP itself. Common structures include:
| Employer Tier (illustrative, varies hugely) | Typical Enhancement |
|---|---|
| Large employer, long service | Full pay for 3-6 months, then half pay for a further period, then SSP only |
| Mid-size employer | Full pay for 4-8 weeks, then SSP only |
| Smaller employer | SSP only, no enhancement |
| Public sector (many schemes) | Often more generous — several months full pay, several months half pay, varies by sector and length of service |
Check your specific employment contract or staff handbook — occupational sick pay terms are contractual, not statutory, and often scale with length of service (a new starter may get little or nothing above SSP, while a 10-year employee might get months of full pay).
What Happens When SSP Runs Out
Once you've exhausted the 28-week maximum SSP entitlement (and any occupational sick pay period, if shorter or already ended), and you remain unable to work due to illness or disability, the main options are:
| Benefit | Who It's For | Key Feature |
|---|---|---|
| Employment and Support Allowance (ESA) | People with limited capability for work due to health condition/disability | Contribution-based ESA doesn't depend on savings/partner's income; income-related ESA does |
| Universal Credit (with a Limited Capability for Work element) | Broader working-age benefit, means-tested | Considers household income/savings; can be claimed alongside or instead of ESA depending on circumstances |
| Personal Independence Payment (PIP) | Extra costs of a long-term health condition/disability, separate from ability to work | Not means-tested, not based on National Insurance record — can be claimed alongside ESA/UC |
Practical planning point: there is often a real gap in processing time between SSP/occupational pay ending and a new benefit claim starting to pay — starting the claims process well before your sick pay actually runs out (where your condition and prognosis allow) reduces the risk of a income gap.
Worked Example: Income Timeline Over a Long-Term Illness
| Period | Income Source | Approx. Weekly Income |
|---|---|---|
| Weeks 1-8 | Occupational sick pay (full pay, example employer) | Full salary |
| Weeks 9-28 | SSP only (occupational scheme exhausted, example employer) | £123.25 |
| Week 29 onwards | SSP ends — ESA/Universal Credit claim (if eligible, after any processing gap) | Varies by circumstances and benefit type |
This illustrates why understanding your specific employer's occupational sick pay terms — and how they interact with the 28-week SSP maximum — is essential for realistic financial planning during a serious or prolonged illness.
Income Protection Insurance: The Gap-Filler Some People Have
Separately from SSP and occupational sick pay, some employees have income protection insurance — either as an employer-provided benefit or a personal policy — which pays a proportion of salary (commonly 50-70%) after a deferred period, often designed to start once SSP or occupational sick pay ends, and can continue paying out for years or until retirement age, depending on the policy. If you have this cover through work or personally, it's worth checking the policy terms well before you might need to rely on it, as claims processes and deferred periods vary.
Practical Checklist for Anyone Facing Long-Term Sickness
- Check your occupational sick pay terms in your contract or staff handbook — don't assume SSP is all you're entitled to.
- Understand the 28-week SSP maximum and plan finances around when it (and any occupational enhancement) will end.
- Start any ESA/Universal Credit claim in good time before sick pay runs out, given typical processing delays.
- Check for income protection insurance through your employer or personally.
- Understand your employment protections — occupational health involvement, reasonable adjustments, and fair process requirements before any capability-related dismissal.
- Review pension contribution continuity as your pay changes through the sickness period, and consider voluntary contributions if a gap opens up.
Frequently asked questions
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