Legislation
Statutory Sick Pay (SSP) reforms
Date
Pending
Summary
As part of the government’s wider ‘Plan to Make Work Pay’, key reforms are being introduced to strengthen Statutory Sick Pay (SSP) – with two significant changes on the horizon.
Firstly, SSP is set to move from a fixed weekly rate to an earnings-based model, calculated at 80% of an employee’s average earnings. This aims to provide more meaningful financial support, particularly for lower-paid workers, without placing excessive pressure on employers.
Secondly, the government has confirmed that the Lower Earnings Limit (LEL) – the minimum earnings threshold to qualify for SSP – will be removed as an entitlement condition.
This change is designed to ensure that more employees, particularly those in insecure or lower-paid roles, are covered by the safety net of SSP. This reform reflects a broader shift towards greater employee protections – and for payroll teams, it’s one to watch closely.
What you need to know
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SSP will be calculated at 80% of average earnings instead of a flat weekly rate.
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The LEL will be scrapped, meaning employees will no longer need to meet a minimum income threshold to qualify for SSP.
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These changes will be introduced via an amendment to the Employment Rights Bill, which is currently progressing through Parliament.
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A timeline for implementation has not yet been confirmed, but the amendment will be considered at the Report Stage in the House of Commons.
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