From April 2026, the government is introducing key reforms to SSP to improve access and fairness. These changes will require updates to your internal policies and processes, and I’ll be here to support you every step of the way.
What’s Changing?
1. Removal of the 3-Day Waiting Rule
Currently, SSP is only payable from the fourth qualifying day of sickness, meaning the first three days are unpaid (unless covered by an occupational sick pay scheme).
From April 2026, this waiting period will be scrapped. SSP will be payable from the first day of absence, provided the absence qualifies under the existing SSP criteria.
Impact for Parish Councils:
You’ll need to budget for a potential increase in SSP costs, especially during periods of higher sickness levels. This change also supports early intervention and recovery by removing the financial burden on employees for short-term illness.
2. New SSP Calculation: 80% of Earnings or a Flat Rate (Whichever is Lower)
At present, SSP is paid at a fixed weekly rate (£116.75 per week for 2025/26, subject to annual review).
From April 2026, SSP will instead be calculated as:
80% of the employee’s average weekly earnings,
or the standard flat rate,
whichever is lower.
This aims to make SSP more proportionate to earnings and sustainable for employers.
E.g. If an employee earns £100 per week:
80% of £100 = £80
SSP flat rate (e.g. £116.75)
They would receive £80 SSP per week, as it is lower than the flat rate.
Impact for Parish Councils:
This change could reduce SSP costs for part-time or low-paid employees, but you may need to adjust expectations and communicate clearly with staff regarding changes to what they’ll receive.
What You Should Do Now
Although these changes won’t take effect until April 2026, it’s good practice to begin preparing early:
Worknest will be providing NALC with an updated policy to reflect these changes which will be available on the SALC member portal in due course.
Consider budget implications – Removing the 3-day waiting period may slightly increase annual SSP expenditure.
Communicate with staff – We recommend a brief internal update, so employees are aware of these future improvements.
I will ensure our payroll systems are updated and compliant well ahead of April 2026, and I’ll provide further guidance closer to the implementation date.
In the meantime, if you have any queries or would like to discuss how these changes may affect your council specifically, please don’t hesitate to get in touch.