Statutory Sick Pay Changes Coming in April 2026 to Affect All Employers

Major changes to workers’ rights set for April 2026 could leave small businesses across Cornwall and beyond feeling the strain

From April 2026, all employees across the UK will be entitled to Statutory Sick Pay (SSP) from day one of their employment, and the lower earnings limit will be scrapped entirely. While this means up to 1.3 million low-paid workers will qualify for sick pay for the first time, concern is rising over how smaller firms will shoulder the cost.

Why It Matters to Local Employers

The government’s plan to scrap the current three-day unpaid waiting period for sick pay is part of a wider employment law reform. The Department for Business and Trade says the move will help ensure no worker has to face financial hardship while recovering from illness.

But for smaller businesses already squeezed by rising National Insurance, increased National Minimum and Living Wage rates, and general operating costs, the new rules could pile on extra financial pressure.

“As well-intentioned as this policy is, it is likely to financially impact local employers, especially smaller businesses with employees on low wages, minimal hours or part-time contracts,” said Claire Murray, Tax Partner at Azets, one of the UK’s top 10 accountancy and advisory firms.

Claire added: “We are already in discussions with worried businesses, from an employer solutions perspective, to look at options which help with tax/cost savings to alleviate additional costs to employers.”

📷Claire Murray, Azets

No Pay Threshold, No Grace Period

Currently, employees must earn a minimum amount and wait three days before becoming eligible for SSP. From next April, that’s changing. All employees will be eligible from their first day on the job, regardless of how much they earn.

Claire explained that many firms are already making difficult choices, with reports of hiring freezes and falling numbers of payrolled employees, even before the new policy takes effect.

“There have been reports of hire freezes and a fall in payrolled employees as they try to balance the books – and that’s before they face paying employees who will be entitled to sick pay from day one of their job start date from next April,” she said.

Wider Package of Workers’ Rights

The changes are part of a wider shift set out in Implementing the Employment Rights Bill – our roadmap for delivering change assets.publishing.service.gov.uk. Other upcoming measures include:

• Doubling the maximum period for protective awards in collective redundancy cases

• Day-one rights for paternity leave

• Day-one unpaid parental leave

• A ban on exploitative zero-hours contracts

• Protections against unfair dismissal from the first day of employment

Angela Rayner MP and Jonathan Reynolds MP wrote in the Ministerial foreword: “Measures such as a ban on exploitative zero hours contracts, the end of unscrupulous fire and rehire practices, parental leave and protections from unfair dismissal from day one will be truly transformative for many.”

Who Will Feel It Most?

According to official figures, there are around 5.5 million businesses in the UK. Of those, the majority are small firms with fewer than 50 staff. Around 1.16 million are classed as micro businesses, employing fewer than 10 people.

Claire warned: “It is the smaller businesses that are likely to be exposed most to the new changes because they often don’t have the deep cash reserves like the larger ones. The new package of workers’ rights from April risks breaking the camel’s back for some.”

For Cornish businesses operating on tight margins, the change may mean reevaluating how they manage staffing, payroll and future recruitment.

With just over eight months to prepare, many are now urgently reviewing their financial plans to ensure they can absorb the changes set to come into force next April.