HM Revenue and Customs have published initial information as part of the June 2025 employer bulletin on changes that form part of the Plan to Make Work Pay, the Government is making changes to Statutory Sick Pay (SSP).
Through the Employment Rights Bill, the government are strengthening SSP to make sure that all employees have access to from the first day they need to take time off work due to sickness, irrespective of their earnings.
The implementation point has been confirmed (1st July 2025) as April 2026 as part of the governments intention is to progress the changes quickly.
The key changes to SSP
SSP will be available from day one.
The government are removing the waiting period, meaning employees are now eligible to receive SSP from the first day of sickness absence as opposed to day four which is currently the case.
LEL eligibility criteria
They are also removing the Lower Earnings Limit as an eligibility criterion for SSP, meaning all eligible employees, regardless of their earnings, will have access to SSP when off sick.
80% entitlement subject to cap
Employees will be entitled to 80% of their normal weekly earnings, or the flat rate, (since 6th April 2025 it is £118.75), whichever is lower. The next rise to the flat rate would be due to increase again on Monday 6th April 2026.
Enforcement of Sick Pay – the Fair Work Agency (FWA)
The Department for Business and Trade (DBT) are leading work to create a Fair Work Agency, a new executive agency which will bring together existing enforcement functions into one place, so employment rights are enforced more effectively and efficiently.
The FWA will also take on enforcement of additional rights, including the right to SSP.
The governments next steps
As the government moves forward with their commitment to strengthen SSP, they want to continue to listen and learn from employers, employees and stakeholders to support the introduction of these measures.
They are keen to engage with employers and payroll providers, given their considerable expertise, to discuss how these changes can be implemented successfully.
They would also like to understand what support is needed to introduce these significant changes, including information and guidance that may be required.
The Employment Rights Bill is only the first phase of delivering the Plan to Make Work Pay. Alongside the government’s new Industrial Strategy, the Bill will support the government’s mission to increase productivity and create the right conditions for long-term sustainable, inclusive and secure economic growth.
In parallel, they have asked Sir Charlie Mayfield to lead the Keep Britain Working review, which will consider recommendations for government to work closely with business, and to build a partnership to improve the quality and inclusivity of work.
If you would like to get in touch regarding the changes being made to SSP, or would be willing to share your thoughts and expertise email the SSP Policy Team at SSP.Team@DWP.gov.uk.
Further information on Statutory Sick Pay and Statutory Sick Pay — Lower Earnings Limit Removal Structure is available at Employment Rights Bill: factsheets.
Employment rights latest
On Tuesday 1st July 2025, the government confirmed that the SSP changes will apply from April 2026.
PAYadvice.UK 27/6/2025 updated 1/7/2025