Changes to Statutory Sick Pay in Stoke on Trent, UK        

                                       Here at Taxaider, we are preparing to action the new ssp changes through payroll processing.

Businesses should update payroll systems to reflect SSP being payable from day one, review contracts, policies and handbooks for references to waiting days or earnings thresholds, and ensure payroll and HR teams understand the new eligibility rules and calculation method.

1. Day-One Entitlement — No More Waiting Days Under the existing rules, SSP is payable from the fourth day of sickness absence, after three waiting days. From April 2026, SSP will be payable from the first day an employee is off sick.
2. Lower Earnings Limit (LEL) Abolished From 6 April 2026, the lower earnings limit for SSP purposes will be removed, meaning lower-paid, part-time and zero-hours workers will qualify when they may not currently do so.
3. New Rate & Calculation The weekly rate of SSP for 2026 to 2027 is £123.25 or 80% of the employee’s average weekly earnings, whichever is lower.
4. Transitional Protection Employees already receiving SSP before 6 April 2026 will be transitionally protected — they will keep receiving the uprated flat rate of £123.25 until they return to work, exhaust their 28-week entitlement, their contract ends, or they reach the start of the SSP exclusion period due to pregnancy.

Impact and Action to consider

Increased costs

The government estimates that removing the three-day waiting period and lower earnings limit will cost

Employers £450 million annually — around £15 per employee.

More employees now qualify

 Day-one SSP entitlement removes the buffer that previously filtered out short absences,

While the removal of the Lower Earnings Limit brings large numbers of low-paid and part-time workers into scope for the first time.

Payroll

software supplier when systems will be updated for the 80% vs flat rate calculation,

Ensure systems and policies no longer refer to waiting days.

SSP

May now vary by employee based on weekly earnings,

So payroll systems must be able to calculate accurately to avoid underpaying or overpaying sick pay.

SSP Change Readiness Checklist in 2026 

• ⚙️ Payroll & Systems — calculation updates, transitional protection, NI & pension
• 📋 HR Policies & Documentation — contracts, handbooks, SSP1 forms
• 👨‍💼 Manager & Team Training — return-to-work, absence management
• 📢 Employee Communications — notifying staff of their new rights
• 💼 Financial & Budget Planning — cost forecasting and modelling

Tick off items as you complete them, track overall progress, and filter by priority to focus on what matters most first.

If you like to understand more on how these SSP changes will affect your payroll processes.

Please get in tough  with the taxaider team today : info@taxaider.com