Millions of UK workers are now covered by major changes to Statutory Sick Pay (SSP) after new rules came into force in April as part of the Labour Government's overhaul of employment rights. The changes, which took effect on April 6, 2025, mean eligible employees can now receive sick pay from the first full day of absence, ending the previous three-day waiting period. The reforms also remove the lower earnings threshold that previously prevented some lower-paid workers from qualifying for SSP, significantly expanding access to sick pay across the workforce.
Under the new rules, eligible employees will receive either 80% of their average weekly earnings or the statutory weekly rate of £123.25, whichever is lower. The government has described the changes as part of its plans to strengthen workplace protections and improve financial security for workers who fall ill.
Employers Must Update Policies and Payroll Systems
Employment law specialists have warned that the reforms will require businesses to make significant adjustments to their policies and payroll systems. Legal experts at Capital Law said almost every employer will need to update employment contracts and staff handbooks to reflect the new entitlement rules. They added that payroll systems must be adapted to calculate the new 80% earnings-based payment where applicable and to ensure sick pay is provided from day one of an employee's absence.
Higher Costs Expected in Some Sectors
Capital Law also warned that some sectors are likely to face higher costs than others as a result of the expanded eligibility criteria and earlier payment requirements. "Mapping out how the changes will affect you, to allow for accurate budgeting for the inevitable increase in SSP payments, will be an important job for HR departments," the firm said. Managers will also need training on the new rules, while employers are being encouraged to communicate the changes clearly to staff.
Government Says Reforms Are 'Biggest Upgrade in a Generation'
Prime Minister Sir Keir Starmer hailed the reforms as part of a wider package of workplace changes being introduced by Labour. "This Government is delivering the biggest upgrade to workers' rights in a generation," he said. "Our Employment Rights Bill is good for workers, good for businesses and good for the economy. It's a core part of our agenda to make people better off and will make a real difference to people's lives." The changes are expected to benefit millions of workers, particularly those in lower-paid roles who previously failed to qualify for statutory sick pay when they became ill.
