Here at DPC we are preparing to action the new SSP changes through payroll processing.
We are however asking clients to also prepare for the changes and get ready to provide exact information, including single dates that employees are absent for sickness along with continuing to provide doctors notes after the 7 day self-certification period to avoid delays in processing.
It is advisable that all our clients review their absence policies and to ensure all employees are aware of the new changes and complying with your company rules.
The Key Changes To Be Aware Of
- SSP rises to £123.25 per week from 6 April 2026.
- 3 Waiting days removed
- SSP is payable from day one of sickness from 6 April 2026.
- The SSP Lower Earnings Limit is removed from 6 April 2026, widening SSP eligibility beyond previous earnings thresholds.
- SSP is capped at £123.25 per week, with lower payments where 80% of Average Weekly Earnings applies.
- Linked absences of 56 days (8 weeks) treated as one period
- Maximum SSP entitlement remains at 28 weeks
Impact and Actions to Consider
- The SSP 2026 reforms will affect almost all UK employers.
- Day-one SSP entitlement removes the buffer that previously filtered out short absences, while the removal of the Lower Earnings Limit brings large numbers of low-paid and part-time workers into scope for the first time.
- The highest risk areas during this period of change are likely to be incorrect eligibility assumptions, misapplying the 80% Average Weekly Earnings cap or late SSP1 forms.
- These issues may seem like minor errors but under the new regime, they could well trigger grievances, claims or enforcement action if not managed properly.
- Payroll systems will need to handle tiered SSP calculations alongside the flat rate.
- Potentially raise overall employer payroll costs.
Now is the Time to
- Review how absence dates are reported to payroll to ensure timely and accurate SSP payments.
- Check whether your payroll software will be able to manage day-one SSP and the new tiered calculation rules. If you are a payroll client of DPC’s, this will be covered for you.
- Consider budgeting for an increase in SSP-related costs from April 2026.
If you’d like to understand more on how these SSP changes will affect your payroll processes, reporting and compliance, please get in tough with the DPC Payroll team today: payroll@dpcaccountants.com
