The much-awaited statutory sick pay reform will officially take effect on 6 April 2026. This milestone marks a significant shift in the UK’s safety net. Under the new sick pay rules, the burden of short-term illness now shifts from the worker to the employer. For the 1.3 million workers previously trapped by the lower earnings limit, this sick pay reform offers a long overdue bridge to financial security.
When do the new sick pay rules start in the UK?
While the Employment Rights Act 2025 received Royal Assent in late 2024, the government has confirmed that the central provisions for the statutory sick pay in 2026 will begin at the start of the new tax year. The good news is that the new sick pay rules will start from 6 April 2026 in the UK.
Under the new sick pay reform eligibility criteria, every employee, regardless of their weekly pay, becomes entitled to support.
This means a retail assistant or a delivery driver will no longer have to earn their right to be ill by suffering three days of zero income. For years, the UK’s sick pay system has been criticized by organizations like Citizens Advice as ‘punitive’ and ‘byzantine’, The 2026 rollout of the statutory sick pay seeks to align the UK more closely with European counterparts, although skeptics argue the flat rate still lags behind.
More on sick pay reform eligibility
The second pillar of the Sick Pay Reform is the total removal of the Lower Earnings Limit (LEL). Previously, those earning less than £123 per week were entirely excluded from the system.
Under the new sick pay reform eligibility criteria, every employee, regardless of their weekly pay, becomes entitled to support. To manage the cost to small businesses, the government has introduced a dual-rate system. From April 2026, workers will receive the lower of:
- 80% of their average weekly earnings, or
- The standard weekly flat rate of £123.25.
This ensures that part-time and “gig” workers, who often balance multiple low-paying roles, finally fall within the protective scope of statutory sick pay changes.
Preparing for Statutory Sick Pay in 2026: Research suggests that the removal of waiting days could cost UK businesses an additional £450 million annually. For many SMEs, the administrative overhead of processing one-day claims will be as painful as the payments themselves.
What about Sick Pay Entitlement and Compliance
Employers must initiate auditing their payroll systems and employment contracts before April 6. Remember, sick pay entitlement will now trigger on the first qualifying day of absence itself. If your company offers contractual sick pay, ensure that it still exceeds the new statutory minimums. Ensure your payroll systems can handle the 80% vs. Flat Rate calculation. Coinciding with the Sick Pay reform start date is the launch of the Fair Work Agency, a new enforcement body with the power to fine employers that fail to pay correctly.
The statutory sick pay reform starting in April 2026 provides a safety net that discourages the act of working while ill and spreading infection. For employers in the UK, it demands a more empathetic approach to absence management and a recalibration of bottom-line costs.
Is your payroll system ready for the changes taking place this summer?
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