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New UK Sick Leave Rule Cuts Waiting Period and Expands Coverage

Starting 6 April 2026, the UK government introduces landmark changes to Statutory Sick Pay (SSP), delivering the most substantial upgrade to workers’ rights in decades. This new rule eliminates the three-day waiting period and removes the earnings threshold, allowing more employees across all sectors to qualify for sick pay from the very first full day of absence.

Under the updated SSP framework, eligible employees will receive 80% of their average weekly earnings (AWE) or the revised flat rate of £123.25 per week—whichever is lower. This represents a significant shift aimed at improving financial security for workers during illness.

Businesses must act swiftly to comply. Employers will need to update contracts and handbooks to reflect these changes and ensure payroll systems calculate the new 80% entitlement correctly starting on day one of sickness absence. Human Resources teams are advised to assess the financial impact on their organisation’s budgets due to increased SSP payouts.

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Training for managers and clear communication with employees about the new sick leave provisions will be crucial in facilitating a smooth transition. This reform underscores the government’s commitment to enhancing employee welfare while supporting economic growth.

Prime Minister Keir Starmer emphasised the importance of these reforms, stating, “This Government is delivering the biggest upgrade to workers' rights in a generation. Our Employment Rights Bill is good for workers, good for businesses, and good for the economy. It will make a real difference to people’s lives.”

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