SSP Is Changing: What Every Day Nursery Needs to Know for 2026

What is changing? 

Employees are currently eligible for statutory sick pay (SSP) if they are sick for a period of four days or more. Low-paid employees who earn less than the lower earnings limit are not eligible for SSP.

The Employment Rights Bill removes both these requirements:

• SSP will be available to employees from day one of their incapacity for work.
• All employees will be eligible, regardless of their earnings.

If an employee earns less than the weekly SSP rate (currently £118.75), they will be entitled to SSP at the rate of 80% of their normal weekly earnings.

Unlike most measures included in the Employment Rights Bill, the changes will apply in Northern Ireland, as well as England, Scotland and Wales.

Employers with no contractual sick pay will see the biggest impact

The change will have the most implications for employers that do not already provide contractual sick pay from the first day of illness.

These organisations should prepare for:

• a potential increase in sickness absence; and
• higher sick pay costs.

They will need to make sure their sickness absence policies and payroll systems are updated to reflect the new eligibility rules.

Training line managers on the managing short term absences will help settings to adapt smoothly to the new rules and keep any increase in absence to a minimum. Training should include how to monitor absence and how and when to carry out absence reviews and welfare meetings.

Thinking of introducing Company Sick Pay?

For the settings who are in the fortunate position to look at introducing Company Sick Pay, it can be a very good way to reward service. Employees who feel less financial pressure to come to work while sick can lead to:

• faster recovery from illness;
• increased productivity;
• higher engagement; and
• reduced transmission of sickness in the workplace.

There will be new enforcement powers

The new Fair Work Agency (FWA), which is established under the Employment Rights Bill, will have powers to enforce the payment of SSP. The FWA will be able to require employers to pay a penalty in addition to the unpaid SSP. Currently, it is down to employees to bring an employment tribunal claim if they are not paid the correct SSP.

What happens next?

In its roadmap for implementing the Employment Rights Bill, the Government confirmed that the changes to SSP eligibility will come into force in April 2026. The exact date is not yet known. At the time of writing (Nov 22 2025) we are still in what is officially known as ‘ping pong’ when the Bill is being batted between the House of Lords and House of Commons. It was expected to have received Royal Assent a month ago.

If you need assistance with any aspect of Managing Absence please do give us a call on 01527 909436.