Statutory Sick Pay Reform: Removing the Waiting Period and Earnings Floor
Reforms under the Employment Rights Act agenda would make Statutory Sick Pay payable from day one of sickness and remove the lower earnings limit — a significant change from the current three-waiting-day and earnings-threshold rules. Where implementation stands.
The gap the reform is designed to close
Statutory Sick Pay has two features that have long been criticised as leaving the lowest-paid and least secure workers with the weakest safety net exactly when they're most likely to need it:
- Three unpaid "waiting days" before SSP starts, meaning a short illness of a few days can mean no statutory pay at all.
- A Lower Earnings Limit (£129/week for 2026/27) below which an employee doesn't qualify for SSP at all, regardless of how genuinely unwell they are.
Both features disproportionately affect lower-paid, part-time, and multiple-job workers — exactly the group with the least financial cushion to absorb unpaid time off sick.
Current rules for 2026/27
| Feature | Current rule (2026/27) |
|---|---|
| Weekly rate | £123.25 |
| Maximum duration | 28 weeks |
| Waiting days | First 3 qualifying days unpaid |
| Earnings threshold | Must average at least £129/week |
| Who pays | Employer (with limited HMRC recovery in specific circumstances) |
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Open Sick Pay (SSP) calculatorWhat's proposed
Reforms discussed under the Employment Rights Bill agenda would:
- Remove the three waiting days, making SSP payable from the first day of a qualifying sickness absence.
- Remove the Lower Earnings Limit as a qualifying condition, bringing workers who currently earn too little to qualify into scope for the first time.
- For the lowest earners newly brought into scope, pay SSP as a percentage of average earnings rather than the full flat rate, to avoid a cliff-edge where someone earning just above nothing suddenly receives the full standard rate.
Why this matters more for some workers than others
| Worker type | Current position | Effect of proposed reform |
|---|---|---|
| Full-time employee earning above £129/week, no employer sick pay top-up | Loses first 3 days' pay each spell of sickness | Paid from day one |
| Part-time worker earning below £129/week (single job) | No SSP entitlement at all currently | Would gain SSP entitlement (likely at a percentage rate) |
| Worker with multiple jobs, each below £129/week individually | May not qualify for SSP from any employer even if combined earnings are substantial | Reform specifically targets this kind of gap |
| Employee with generous employer occupational sick pay from day one | Waiting days largely irrelevant already, as employer pay bridges the gap | Limited practical change, since already covered beyond the statutory minimum |
What to check before assuming this applies to you
Employment reforms of this scale are typically legislated first and then implemented on a phased timetable, sometimes over a year or more, with specific commencement dates confirmed later. Before assuming the reformed rules already apply:
- Check gov.uk for the current confirmed status and implementation date of the specific SSP reforms.
- Check your own contract and staff handbook — many employers already pay enhanced occupational sick pay that exceeds the statutory minimum, in which case the waiting-days reform is less material to your actual take-home pay during sickness.
- If you have multiple low-paid jobs, keep records of hours and earnings across all employers, since the current Lower Earnings Limit is assessed per employment, not combined — a detail that matters both under current rules and however the reform is eventually implemented.
The practical takeaway
This is a genuinely significant proposed change to one of the most basic employment protections in the UK — removing both the waiting-day gap and the earnings floor would bring millions of lower-paid and multiple-job workers into scope for sick pay for the first time, and end the situation where the size of your paycheque in a given week can determine whether you get any statutory support at all when you're too ill to work. Until officially confirmed as in force, though, treat the current 2026/27 rules (three waiting days, £129/week threshold, £123.25/week rate) as the operative position for your own planning.
Frequently asked questions
How does Statutory Sick Pay currently work, before any reform?
Under the current rules, Statutory Sick Pay is £123.25 a week for 2026/27, payable for up to 28 weeks, but only to employees earning at least the Lower Earnings Limit (£129 a week for 2026/27) on average, and only from the fourth qualifying day of sickness — the first three 'waiting days' are unpaid unless your employer chooses to pay you for them under its own occupational sick pay scheme.
What does the proposed reform change?
Proposals under the Employment Rights Bill agenda would make SSP payable from the first day of sickness absence, removing the three unpaid waiting days, and would remove the Lower Earnings Limit as a qualifying condition, meaning lower-paid workers who currently earn too little to qualify for SSP at all would become entitled to it (likely at a percentage of earnings for the lowest paid, rather than the full flat rate).
Has this reform actually come into force yet?
As of the current tax year, check gov.uk and official Employment Rights Bill implementation guidance for the confirmed status and date, since employment reforms of this kind are often phased in over an extended timetable after being legislated, and this guide describes the proposal and direction of travel rather than asserting a specific in-force date.
Who benefits most from removing the Lower Earnings Limit?
Workers earning below the Lower Earnings Limit — commonly people in multiple part-time jobs, some zero-hours workers, and others with low weekly earnings from a single employer — currently receive no Statutory Sick Pay at all if they fall below the threshold, regardless of how ill they are. Removing the earnings floor would bring these workers into scope for the first time, likely at a different (lower, earnings-related) rate than the standard flat SSP amount.
Would removing the waiting days benefit higher earners too?
Yes, in principle — any employee currently subject to the three unpaid waiting days, regardless of income level, would be paid from day one of a qualifying sickness absence rather than losing the first three days' pay (unless already covered by an employer's own occupational sick pay scheme, in which case the statutory waiting-day rule is often less relevant in practice).
Does my employer's own occupational sick pay scheme already cover this gap?
Many employers, particularly larger ones, already pay more generous occupational sick pay from day one regardless of the statutory SSP rules, in which case the statutory reform matters most to employees whose only sick pay entitlement is the statutory minimum — check your contract and staff handbook to see what your specific employer already provides beyond SSP.
What is the current Lower Earnings Limit for SSP purposes in 2026/27?
The Lower Earnings Limit for SSP qualifying purposes in 2026/27 is £129 a week (average weekly earnings). Employees earning below this on average currently do not qualify for SSP at all under the existing rules, which is the specific gap the proposed reform targets.
Should I plan my finances around the reform already being in effect?
No — until the reform is confirmed as in force by gov.uk or your employer's official communications, you should continue to plan around the current SSP rules (three waiting days, £129/week earnings floor, £123.25/week rate for 2026/27) rather than assuming the reformed rules already apply to you.
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