Changes to Statutory Sick Pay to have the Greatest Impact on Employers

The Advisory, Conciliation and Arbitration Service (“Acas”) recently commissioned YouGov to survey employers and employees on which upcoming changes in the Employment Rights Act 2025 (“ERA 2025”) they expect to have the greatest impact. Acas published the findings on 26 February 2026.

Survey Findings

For employers, the top anticipated changes were:

• The introduction of statutory sick pack (“SSP”) from the first day of absence rather than day four (43%);
• Protection from unfair dismissal after six months of employment instead of two years (31%); and
• Eligibility for paternity leave from day one of employment (28%).

Employees selected broadly similar priorities. Their top three were:

• Access to SSP from day one (36%);
• Unfair dismissal protection after six months (30%); and
• Improved access to flexible working arrangements. (28%)

Statutory Sick Pay 

The survey indicates that reform of the SSP regime is expected to be the most impactful change for both groups. 

Under the current rules, employees qualify for SSP on the 4^th qualifying day of sickness, provided they earn at least the lower earnings limit per week before tax and meet notification requirements. Where eligible, employers must currently pay a minimum of £118.75 per week (as at March 2026) for up to 28 weeks, although many employers offer enhanced contractual sick pay. The weekly rate of SSP increases every April in line with any increase in the Consumer Prices Index.

Under ERA 2025, SSP entitlement will begin on day one of sickness absence and the lower earnings limit will be removed. Employees earning below this level will receive the lower of the current flat-rate SSP or 80% of their normal weekly earnings.

This change is scheduled to take effect on 6 April 2026. Employers should begin reviewing their policies and payroll systems to ensure compliance.

Information about paternity leave and unfair dismissal can be found in our previous post – Employment Rights Act 2025 – Update! – SE Solicitors.

If you have any questions regarding the changes to Statutory Sick Pay or any of the recent employment law updates, please do not hesitate to contact our specialist employment law team here. 

Sources

Statutory sick pay – Sick pay – Acas

New Acas survey on the Employment Rights Act reveals that sick pay changes will have biggest impact at work | Acas

Employment Rights Act 2025: statutory sick pay factsheet

Statutory Sick Pay (SSP) : Overview – GOV.UK

The contents of this article are a general guide only at the date of publication. It is not comprehensive, and it does not constitute legal advice. Specific legal advice should be sought in relation to the particular facts of a given situation.