The Employment Rights Act 2025 is claimed to be key pillar of the government’s Plan to Make Work Pay, which is aimed at growing the economy, boosting wages, and reducing insecure work.
The Act was developed in close collaboration with business and trade unions and is said will help bring UK employment rights legislation into the 21st century, extending modern protections to millions more workers.
Statutory Sick Pay (SSP) changes 6th April 2926
New statutory sick pay (SSP) reforms mean up to 1.3m low paid employees will additionally be able to take time off when they’re sick without worrying about not being paid.
What is SSP?
Statutory Sick Pay (SSP) is the minimum statutory payment an employee is entitled to for periods where they are unable to work due to illness.
Who was eligible?
To be eligible for Statutory Sick Pay an individual must be classed as an eligible employee and must have average weekly earnings at or above the Lower Earnings Limit (until 5th April 2026 that is £125 per week).
When did they get SSP?
Those that are eligible are only paid from their fourth working day of sickness absence. This means up to 1.3 million low paid workers were not eligible for Statutory Sick Pay and no employee receives Statutory Sick Pay for absences less than four days.
What was the consequence?
The SSP rules could economically force people to work when they are unwell, which can lead to spreading infectious diseases at work and lower productivity for businesses.
So what has changed?
Lower Earnings Limit removed
Removing the requirement to earn at or above the Lower Earnings Limit. This will mean the lowest-paid employees will now be entitled to Statutory Sick Pay.
New SSP rate of 80% of average earnings if lower than the fiat rate £123.25
For some lower earners, including those earning below the Lower Earnings Limit, their rate of Statutory Sick Pay will be calculated as a percentage of their earnings instead of the flat weekly rate.
The Government consulted on what this rate should be and, taking into account the responses to the consultation and discussions with stakeholders, this rate will be set at 80% of normal weekly earnings, or £123.25, whichever is lower.
Waiting days removed
Removed are the waiting period meaning all eligible employees can receive Statutory Sick Pay from the first day of sickness absence.
Time to recover from illness
Together these changes will support all employees to take the time off they need to recover by providing better financial security, whilst also limiting the costs to businesses and reducing the spread of infectious diseases.
Summary of changes
The Statutory Sick Pay measures included on the face of the Bill include:
- Removing the Lower Earnings Limit to make Statutory Sick Pay available to all employees regardless of their weekly earnings.
- The changes introduced by the Bill mean that the rate of Statutory Sick Pay will be 80% of an employee’s earnings or the current flat rate (£123.26 from April 2026) whichever is lower.
- Removing waiting days from the Statutory Sick Pay system and amending the Period of Incapacity for Work, so that eligible employees are entitled to Statutory Sick Pay from their first full day of sickness absence, rather than the fourth.
- Inclusion of Statutory Sick Pay (including the current enforcement and disputes process) within a newly established single enforcement body – the Fair Work Agency (FWA).
Resources on SSP
PAYadvice.UK have published a number of articles and resources on the SSP changes and will add additional resources and articles as and when the government issue further information.
PAYadvice.UK 22/12/2025 last updated 15/4/2026