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Care Providers’ Guide to UK Statutory Sick Pay Changes in 2026

This guide is written for employers and HR teams. If you're an employee looking for advice on your own situation, your employer's HR team or ACAS (acas.org.uk) are the right starting points.

Recent reforms to Statutory Sick Pay (SSP) are now in force and for care sector employers, the impact is immediate and significant. 

From April 2026, SSP is payable from day one of sickness absence and is available to a much wider group of workers. While these reforms are designed to support employee wellbeing, they also bring added cost, administrative demands, and operational considerations for employers. 

For the UK care providers sector, where margins are often tight and staffing is already a challenge, understanding and preparing for these changes is essential. 

The UK’s statutory sick pay changes 2026

The latest SSP reforms introduce several key changes: 

• SSP is now paid from the first day of sickness absence (removing the previous 3-day waiting period) * 

• The lower earnings limit has been removed, widening eligibility  

• Employees receive 80% of their normal wages or the flat statutory rate -whichever is lower  

• In short: more employees now qualify, and payments start sooner.   

*SSP still only applies where qualifying conditions are met. Employees must be off work due to incapacity, and the day in question must be a qualifying day based on their pattern. Employers must also continue to follow standard evidence requirements, including self-certification and fit notes. 

Why sick pay changes matter for the UK care sector  

Care providers are likely to feel the impact more than many other sectors due to: 

• A workforce that includes a high proportion of lower-paid and part-time employees  

• High reliance on zero-hours and flexible contracts  

• Ongoing recruitment and retention challenges  

• Higher levels of sickness absence linked to physically and emotionally demanding work  

This means a greater number of employees may now be eligible for SSP, increasing cost and complexity, highlighting the importance of specialist healthcare HR and employment law consultancy support. 

The potential impact on employers

1. Higher employment costs - With SSP starting from day one and applying to more employees, payroll costs are likely to increase. For providers working within fixed funding arrangements, this can put additional pressure on budgets. Greater administrative burden. 

2. More short-term absence  - Some employers may see an increase in short-term absences, as employees no longer lose pay during the first few days off. While this supports wellbeing, it can lead to more frequent gaps in rotas. 

3. Operational challenges - Even small increases in absence can have a noticeable impact in care settings, including disrupted rotas, increased use of agency staff or overtime, added pressure on existing teams and potential impact on continuity of care. 

4. Greater administrative demand - With more employees eligible for SSP, employers may also see an increase in payroll, HR admin, and absence reporting – placing additional strain on already busy teams. 

Are there any benefits for UK employers?

While the challenges are clear, there are some potential longer-term benefits. 

Encouraging staff to stay at home when unwell can help reduce the spread of illness - particularly important in care environments. There may also be less presenteeism, which can support productivity and reduce longer-term health issues. 

In addition, improved access to sick pay could have a positive impact on employee satisfaction and retention over time. 

What should employers do now? 

1. Review sickness absence policies 
Make sure these reflect day one SSP and the wider eligibility rules - and that they’re being applied consistently in practice. 

2. Understand the financial impact 
Assess what increased SSP costs could look like for your organisation and how this fits into wider budgeting and workforce planning. 

3. Strengthen absence management processes 
Clear reporting, monitoring, and timely intervention will be key - particularly if short-term absence levels begin to rise. 

4. Plan for staffing gaps 
Consider how you’ll manage short-notice absences, including access to bank staff or flexible resourcing options. 

5. Train managers 
Line managers play a critical role. They need to understand both the rules and how to apply them fairly and confidently. 

6. Check payroll and HR systems.  

Ensure SSP is triggered correctly from day one and calculated in line with the new rules, particularly where working patterns and pay vary.