Are you ready for the changes impacting sickness absences in social care?

Previously, SSP was only paid from the fourth day of absence, and eligibility was limited to those earning at least £125 per week. Starting from 6 April 2026:

• SSP will be paid from the first day of sickness, removing the three-day waiting period;
• the lower earnings limit of £125 per week will be removed, making SSP available to workers with lower hours and pay;
• the weekly SSP rate will rise from £118.75 to £123.25. Workers earning below this rate will receive 80% of their average weekly earnings.

In addition, non-compliance with SSP requirements will be enforced by the newly created Fair Work Agency, which will handle enforcement similarly to how HMRC manages NMW issues, meaning employees won’t need to go to an employment tribunal to resolve SSP disputes.

These updates will increase providers’ SSP liabilities, as many more short-term absences will qualify for SSP. Removing the lower earnings limit also expands eligibility, further increasing costs. Short-term sickness absences may become more common. For example, some employees who previously worked while sick might now take time off because of the new rules. There is also a risk of employees reclassifying other types of unpaid leave, such as time off for dependants, as sickness absence in order to access SSP.

Although these reforms are designed to support employees financially during illness, they are being introduced alongside rising employment costs, especially recent increases in the NMW, employer national insurance and ongoing pressure on care fees.

Care providers should review the past two years’ worth of sickness absence data to assess the potential financial impact. They should work with payroll teams to update their systems, plan for higher costs in budgets and forecasts and ensure a smooth transition. It is important to update sickness policies and procedures, train managers on handling absence effectively, and revise employment contracts to reflect the new SSP rules including a definition of what amounts to a qualifying day for SSP purposes. Employers offering enhanced sick pay should also check how their contracts interact with the new legislation and consider any needed changes.

RWK Goodman’s specialist Health & Social Care team can help with all of the above and provide strategic advice on how to prepare for and manage these changes.