UK Statutory Sick Pay Reform: Day-One Right for 2026/27
The Employment Rights Bill removes the three-day SSP waiting period and the Lower Earnings Limit, making Statutory Sick Pay a day-one right for all eligible employees regardless of how much they earn. This guide explains the old rules, what is changing, and what it means in practice.
As part of the Employment Rights Bill agenda, two long-standing restrictions on Statutory Sick Pay are being removed: the three "waiting days" at the start of an absence during which no SSP was payable, and the Lower Earnings Limit, which previously excluded lower earners from SSP altogether. Together, this makes SSP a genuine day-one right — payable from the very first day of a qualifying sickness absence, and available regardless of how much an employee earns, as long as they are otherwise an eligible employee.
The Old Waiting Days Rule
Under the previous rules, SSP was not payable for the first three qualifying days of a period of incapacity for work, commonly known as waiting days. This meant an employee off sick typically received no SSP for the first three days and started receiving it only from the fourth day, unless a linked period of sickness within the previous 8 weeks meant waiting days had already been served on an earlier absence. Removing waiting days closes this gap, so eligible employees are paid SSP from day one of a new qualifying sickness absence.
The Old Lower Earnings Limit
SSP eligibility previously depended on earning at least the Lower Earnings Limit (LEL) — a weekly earnings threshold used across the National Insurance system — in the relevant qualifying period. Employees earning below this threshold received no SSP at all during sickness, however long they were off work. This disproportionately affected part-time workers, those on lower hourly rates, and people juggling multiple jobs where earnings in any single job could fall below the threshold even with regular work. Removing the earnings floor brings these workers into scope for SSP for the first time.
How Much SSP Will Be Paid
Removing waiting days and the earnings floor changes who qualifies and when SSP starts — it does not automatically mean everyone receives the same flat rate as before. Under the reformed rules, lower earners who previously received nothing are generally expected to receive either the standard flat weekly SSP rate or a percentage of their normal weekly earnings, whichever is lower, ensuring the reform genuinely helps lower earners without creating an anomaly where SSP could exceed someone's normal pay. Statutory Sick Pay remains well below full pay for most employees, so many employers continue to offer enhanced contractual sick pay on top of the statutory minimum.
Impact on Employers
Because SSP is generally funded by employers themselves rather than reclaimed from the government (outside narrow historic rebate schemes), extending SSP to more employees and from an earlier point in an absence increases the potential cost to employers, particularly smaller businesses with a higher proportion of part-time or lower-paid staff. Employers may want to review sickness absence policies, budgeting, and any group income protection or sick pay insurance arrangements ahead of the reform taking effect.
Interaction with the Fit Note Process
The underlying process for certifying sickness is unaffected by this reform: employees can self-certify for the first 7 days of sickness, and need a fit note from a doctor or other authorised healthcare professional for longer absences. What changes is purely when SSP starts being paid and who qualifies on earnings grounds — the medical evidence requirements for sickness absence remain the same.
The Employment Rights Bill removes two long-standing restrictions on Statutory Sick Pay (SSP): the three "waiting days" at the start of a sickness absence, during which SSP was not normally payable, and the Lower Earnings Limit, which previously meant employees earning below a set weekly threshold got no SSP at all. Together, these changes make SSP available from the first day of sickness for all eligible employees, regardless of how much they earn.
What was the old rule on waiting days?
Historically, SSP was not payable for the first three "qualifying days" of a period of incapacity for work (commonly called waiting days), meaning an employee typically only started receiving SSP from the fourth day of sickness onwards, unless they had a linked period of sickness within the previous 8 weeks that meant waiting days had already been served.
What was the Lower Earnings Limit and why did it exclude some workers?
The Lower Earnings Limit (LEL) was a weekly earnings threshold below which an employee was treated as not earning enough to qualify for SSP at all, receiving nothing during sickness absence regardless of how long they were off. This particularly affected part-time, low-paid and multiple-job workers, who could fall below the threshold in any given job even while working regularly.
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Will everyone now get the same amount of Statutory Sick Pay?
No — removing the Lower Earnings Limit only affects the qualifying earnings test, not the flat weekly SSP rate itself. However, low earners who previously got no SSP at all will now generally receive either the standard flat rate or a percentage of their normal weekly earnings, whichever is lower, so those below the old threshold gain new SSP entitlement rather than seeing the same amount as everyone else.
Does this mean I get paid in full from day one of being sick?
No. Removing waiting days means SSP itself becomes payable from day one, but SSP is a flat statutory rate, well below most people's normal full pay, so day-one SSP is not the same as full contractual sick pay. Many employers offer enhanced contractual sick pay schemes on top of SSP, and those contractual terms are unaffected by this specific reform unless the employer chooses to change them.
When does the SSP reform take effect?
The SSP reforms are part of the wider Employment Rights Bill agenda and are being implemented on a phased timetable following consultation and secondary legislation, alongside other measures such as day-one unfair dismissal protection and guaranteed hours. Check GOV.UK for the confirmed implementation date, as timing has been subject to revision during the bill's passage.
Does this affect self-employed people?
No. Statutory Sick Pay only applies to employees paid through PAYE by an employer; it has never covered the self-employed, who instead may rely on Employment and Support Allowance, Universal Credit, or their own private income protection insurance if they are unable to work due to illness. The SSP reforms do not change this position.
Will employers face higher costs because of this reform?
Potentially, yes — removing waiting days and the earnings floor increases both how many employees can claim SSP and how many days it is paid for, since employers fund SSP themselves (there is no longer a general SSP rebate scheme for most employers, outside specific limited circumstances). Employers, particularly smaller ones with many part-time or lower-paid staff, may want to review sickness absence policies and any sick pay insurance cover in light of the change.
How does this interact with the fit note process?
The underlying process for certifying sickness — self-certification for the first 7 days, then a fit note from a doctor or other authorised healthcare professional for longer absences — is not changed by the removal of waiting days or the earnings floor. What changes is simply when SSP starts being paid and who qualifies on earnings grounds, not how sickness itself is evidenced.
What should employees do to make sure they get SSP correctly under the new rules?
Report sickness to your employer promptly following your employer's normal notification procedure, self-certify for the first 7 days as required, and obtain a fit note for longer absences. If you believe you have been wrongly refused SSP after the reform takes effect — for example on the old earnings floor or waiting-day grounds — raise it with your employer's HR team, and contact ACAS for free advice if the issue is not resolved.
Disclaimer: Employment Rights Bill provisions are being phased in and precise timing and figures may change before implementation; check GOV.UK for the current position. This guide is general information, not legal advice. Always seek independent professional or ACAS advice for your specific situation.
