17/11/2025
New findings reveal that three quarters (75%) of UK businesses are concerned about the financial impact of upcoming Statutory Sick Pay (SSP) changes yet almost half (46%) acknowledge that they haven’t taken steps to prepare.
A new survey released by The HR Dept, polled over 600 businesses owners and decision makers across a wide range of sectors from construction to childcare, and found that 75% of businesses were financially concerned about the impending SSP changes due to take effect from 6th April 2026. 62% reported that they expect the changes to have a negative financial impact and a further 13% anticipate a highly negative impact.
The legislation fuelling this concern is the abolishment of the three-day waiting period, meaning SSP will be paid from the first day of sickness absence as opposed to day four. Furthermore, the Lower Earnings Limit will be removed, making 1-1.3 million more people eligible for the lower of the flat rate or 80% of their normal weekly earnings.
Despite these concerns, the research also revealed a significant lack of preparedness and investment in basic HR tools that could help to mitigate the potential impact of these changes. Over 56% of businesses do not have an Enhanced Company Sick Pay Scheme in place, and nearly 46% of businesses report being unprepared or neutral in their preparedness to manage these changes.
Michaela Gartside, Director of HR Dept Bracknell, Windsor and Heathrow argues that these changes will be far less impactful for those employers who have already been proactive about sick pay, commenting: “Our survey demonstrates that many UK businesses have avoided adopting a proactive approach to absence and have instead been relying on the three-day SSP waiting period as their de facto absence management policy. For the 54% of businesses who are prepared, the impact of the new rules will be marginal because they have already invested in fair systems and robust HR practices, which naturally curb unnecessary sickness rates.”
“For the 46% who are underprepared, the law acts as a necessary ‘stress test,’ forcing them to finally adopt professional HR governance,” Michaela adds. “The real risk isn’t the legislation; it’s the failure to manage people fairly and effectively. The hallmarks of a good sickness absence policy doesn’t change in April 2026; it simply becomes non-negotiable.”
With changes likely to come into effect in April 2026, Michaela is keen to stress that employers have plenty of time to put suitable preparations in place, and she also believes that more balanced language and guidance from the government would go a long way to easing concerns.
She says: “The fearmongering language surrounding the SSP changes isn’t constructive and creates a sense of unease, even for good employers. But rather than it being a source of panic, employers can use the coming months to put the right procedures in place now, which will reduce their workloads when these policies come into force. Many of the changes outlined in the Employment Rights Bill are essentially a constant evolution of what HR is already advocate business should do, so it is up to HR professionals and the government to make it clear that there is sufficient time for employers to make what for many, will just be tweaks to improve their processes.”
The HR Dept is encouraging businesses to act now by implementing essential best practices, including robust policy reviews, sickness reporting by telephone, maintaining good absence records and embedding return-to-interviews to set the expectation that every absence is noticed. Differentiating between employee sickness (eligible for SSP) and other unpaid leave e.g. time off for family issues will be an important step in managing the financial impact.
Michaela adds: “As HR professionals it is ultimately our job to ensure that our guidance to employers remains balanced and doesn’t add to some of the sensationalized rhetoric arising around the bill. As well ensuring that business uncertainty is kept in check by providing reassurance to employers that there is plenty they can do now, to be in best position possible for future changes.”
Original Article: HRnews
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