The Department for Work and Pensions (DWP) is set to provide a £120 cash boost to people who need time off work due to illness, as Statutory Sick Pay (SSP) rates are confirmed to rise by 3.5% from April next year.
SSP is the legal minimum amount that employers must pay eligible workers, and it is payable from the first day of sickness absence. The payment is currently £123.25 per week, or 80% of normal weekly earnings—whichever is lower—and is paid for up to 28 weeks.
Rate Increase Details
The 3.5% uplift, aligned with the consumer prices index (CPI) inflation in the year to September 2026, will take the weekly rate from £123.25 to approximately £127.56 in the 2027 to 2028 tax year. For someone receiving the benefit for the maximum 28 weeks, this amounts to an overall boost of around £120.79.
Confirming the uplift in a review published following the Budget on October 28, Minister of State Baroness Sherlock said: "Other State Pension and benefit rates covered by my statutory review will be increased by 3.5%, in line with the increase in the consumer prices index in the year to September 2026."
"This includes most working-age benefits and other benefits for people below State Pension age; benefits to help with additional needs arising from disability; Statutory Payments including Statutory Sick Pay and Statutory Maternity Pay; and Additional State Pension. The Pension Credit Savings Credit maximum amount will also increase by 3.5%."
Changes to SSP Rules
The increased pay comes after a law change to SSP rules earlier this year, which removed the waiting period for sick pay and the minimum earnings limit to get paid for illness. Under the changes, SSP is available to all eligible employees regardless of earnings and is payable from the first day of sickness, rather than the fourth day as was previously the case.
Previous rules allowed workers to get SSP for up to 28 weeks, paid for all the days they are off sick that they normally would have worked, except for the first three. This three-day waiting period has now been scrapped.
Confirming the SSP changes in guidance published earlier this year, HMRC said: "From 6 April 2026 the Employment Rights Act 2025 introduces two major changes to Statutory Sick Pay (SSP)."
"Removal of the Lower Earnings Limit: All eligible employees will be entitled to SSP regardless of income. SSP will be paid at 80% of normal weekly earnings or the uprated weekly flat rate of £123.25 [£127.56 from April], whichever is lower. Removal of the Waiting Period: SSP will be paid from the first full day of sickness absence, not from day four."
"These changes make SSP more accessible and remove barriers for lower-paid employees, and will apply across the United Kingdom, including Northern Ireland."
"The relevant legislation will apply as to when the sickness absence took place. Absences starting before 6 April 2026 will follow the current system to determine eligibility and payment. Absences starting on or after 6 April 2026 will use the new rules, unless otherwise outlined in legislation."
Eligibility and Impact
Workers will be paid SSP for all full days they are off sick that they normally would have worked, and employers will use average weekly earnings over an eight-week period to work out how much is due. To qualify for SSP, a person must be classed as an employee, have done some work for their employer, and have been ill for at least one full working day. They must usually tell their employer they are unable to work before the deadline set, or within seven days if none has been set.
The DWP said the new "fairer rate" strikes the right balance between giving workers who fall ill financial security and the cost to businesses, while retaining incentives for people to return to work.
