67% of employers say they needed more notice before the changes to Statutory Sick Pay
Summary
New GRiD research shows 67% of employers wanted more notice ahead of the April 2026 statutory sick pay (SSP) reforms. The Employment Rights Act 2025 (Royal Assent December 2025) brings SSP from day one rather than day four, removes the lower earnings limit and introduces an earnings-related calculation. While 60% of employees support the changes, 18% of employers expect the reforms to pose a significant business challenge in the next 12 months — rising to 24% for employers with more than 250 staff.
Among employers anticipating a challenge, common responses include cutting other benefits, raising prices, reducing employment costs and trimming employer pension contributions. GRiD’s spokesperson Katharine Moxham warns businesses had only around four months to update payroll and policies and urges employers to offer broader, proactive support (income protection, rehabilitation, GP access, EAPs and mental-health support) rather than relying on SSP alone.
Key Points
- 67% of employers said they needed more notice before the SSP reforms due in April 2026.
- Key legal changes: SSP payable from day one, removal of lower earnings limit, and a new earnings-related calculation method.
- 60% of employees support the reforms, signalling public approval despite employer concerns.
- 18% of employers expect significant operational or financial challenge; this rises to 24% for firms with 250+ staff.
- Planned employer responses: reduce other employee benefits (47%), increase product/service prices (42%), cut employment costs such as headcount (36%), and reduce employer pension generosity (31%).
- GRiD advises employers to adopt proactive, coordinated support (income replacement, vocational rehabilitation, timely medical access, EAPs and mental-health services) to reduce long-term absence and SSP exposure.
- Businesses had roughly four months between the Act’s Royal Assent and the April 2026 implementation — a tight window for payroll and policy changes.
Why should I read this?
Look — if you deal with HR, payroll or budgets, this isn’t just another headline. The SSP shake-up hits pay packets, payroll systems and benefits planning. Read this so you know what employers are actually thinking (and likely to do) — cut perks, pass on costs or rethink headcount. Short version: it affects your people and your bottom line.
Context and Relevance
The SSP reforms land amid sustained economic pressure and rising costs, so even well-meaning legal changes can create real operational strain. For HR and finance teams the story ties into two ongoing trends: tighter regulatory timelines and a shift towards holistic absence-management strategies. Employers that lean on reactive statutory payments alone may face higher costs and poorer return-to-work outcomes; integrating group risk benefits and proactive health support can mitigate those risks.
For policy watchers and HR leaders this is a useful snapshot of employer sentiment and likely market responses — useful for planning benefits, forecasting labour costs and shaping communication with staff before and after the changes take effect.