UK Statutory Sick Pay: 2026/27
UK Statutory Sick Pay (SSP) 2026/27: £123.25/wk + Reforms
Comprehensive guide for UK employers + employees navigating sickness absence in 2026/27. £123.25/week SSP rate, 28-week duration cap. Employment Rights Bill 2024/25 reforms abolish the 3-day waiting period (SSP from Day 1) and remove the £125/week Lower Earnings Limit threshold (extending SSP to ~1.3m additional low-paid workers). SSP1 transfer form, ESA + Universal Credit after 28 weeks, Occupational Sick Pay distinction, capability dismissal procedures. 4 worked absence scenarios. Statute: Part XI SSCBA 1992 + SSP (General) Regs 1982.
2026/27 SSP key figures
SSP weekly rate
£123.25
Up from £118.75 in 2025/26
Max duration
28 weeks
Per Period of Incapacity for Work
Employer reclaim
0%
PTS abolished April 2014 - full employer cost
Employment Rights Bill 2024/25 - the biggest SSP reform in decades
| Reform element | Pre-reform | Post-reform | Workers affected |
|---|---|---|---|
| Waiting period | First 3 days unpaid | SSP from Day 1 | ~5 million annually previously hit by waiting period |
| Lower Earnings Limit | £125/wk minimum | No LEL; 80% of pay for low earners | ~1.3 million low-paid workers newly eligible |
| Rate | £118.75 (2025/26) | £123.25 (2026/27) | All SSP recipients (standard CPI uprating) |
Royal Assent: late 2025. Commencement: staged into 2026/27 (exact dates may vary by reform element - confirm via current gov.uk guidance). Estimated employer cost increase: £1-2bn/year aggregate UK. SME impact significant - particularly hospitality, retail, social care where day-1 absences were previously unpaid. Many employers reviewing OSP policies to fold SSP changes in.
4 worked SSP absence scenarios
| Scenario | SSP/wk | Weeks paid | Total SSP | + OSP | Replacement % |
|---|---|---|---|---|---|
| Short illness, employer with OSP £720/wk normal, 2 weeks off 2 weeks at £600 OSP + £123.25 SSP. OSP makes up the difference for full-pay employer. | £123.25 | 2 | £247 | £1,200 | 100% |
| Long-term illness, SSP only £480/wk normal, 12 weeks off SME employer with no OSP scheme. 12 weeks × £123.25 = £1,479 total income vs normal £5,760 = 74% income drop. | £123.25 | 12 | £1,479 | — | 26% |
| Hits 28-week SSP limit £800/wk normal, 30 weeks off 28 weeks SSP + last 2 weeks ESA/UC claim. Issue SSP1 transfer form to DWP. | £123.25 | 28 | £3,451 | — | 14% |
| Low earner post-Employment-Rights-Bill £100/wk normal, 4 weeks off Pre-reform: ineligible (under LEL £125/wk). Post-reform: gets 80% of weekly pay = £80/wk for 4 weeks. | £80.00 | 4 | £320 | — | 80% |
Without Occupational Sick Pay (OSP) top-up, SSP alone replaces 15-30% of typical UK salary. Public sector + larger private employers usually provide enhanced OSP covering full pay for 6-26 weeks. Small/medium employers often offer SSP-only - exposing employees to significant income drop during sickness.
SSP1 form - the transfer to DWP
Form SSP1 is the EMPLOYER-issued notification triggering DWP-paid benefits. Two scenarios for issuing:
- Ineligibility from outset: employee fails an eligibility test. Issue SSP1 within 7 days of the absence claim, explaining why. Employee can claim ESA/UC from DWP using SSP1.
- 28-week SSP limit reached: issue SSP1 within 7 days of the 28th week ending, showing dates SSP was paid + transfer details. Employee takes SSP1 to DWP for ESA / UC claim.
Late SSP1 issuance can lose the employee ESA backdating (up to 3 months). Best practice: issue SSP1 a few weeks BEFORE the 28-week point so the employee has transition time to apply for DWP benefits + avoid income gap. HMRC penalty for non-compliance: up to £3,000 per case (Section 117 SSCBA 1992).
Frequently asked questions
What is the SSP rate for 2026/27?
£123.25 per week for 2026/27 (uprated annually by CPI September figure under Social Security Up-rating Order). Up from £118.75 in 2025/26, £116.75 in 2024/25. Paid by EMPLOYERS via PAYE. No employer reclaim since April 2014 (Section 159A SSCBA 1992 abolished the "percentage threshold" reclaim scheme). Maximum 28 weeks of SSP per "period of incapacity for work" (PIW). After 28 weeks, employee transfers to DWP-paid benefits (Employment Support Allowance or Universal Credit). Statute: Part XI Social Security Contributions and Benefits Act 1992 + Statutory Sick Pay (General) Regulations 1982. SSP is TAXABLE income for the employee + subject to NI (just like salary), but does NOT count toward State Pension qualifying year accrual on its own (the relevant test is overall earnings during the tax year).
What changed with SSP under the Employment Rights Bill?
Two MAJOR reforms under the Employment Rights Bill 2024/2025 (Royal Assent late 2025, commencement staged into 2026/27). (1) 3-day waiting period ABOLISHED: previously SSP started from day 4 of sickness (the first 3 days were "waiting days" with no SSP). The reform makes SSP payable from DAY ONE of sickness, matching the spirit of the 2020 COVID temporary suspension which the government has now made permanent. (2) Lower Earnings Limit (LEL) removed: previously SSP eligibility required minimum weekly earnings of £125/week. Reform removes this threshold - all workers earning ANY amount eligible. Low earners get 80% of weekly pay (capped at full SSP rate £123.25). These reforms expand SSP to ~1.3 million additional workers + provide first-day support to ~5 million previously hit by the waiting period. Employers face significant additional cost - estimated £1bn-£2bn/year aggregate across UK. Commencement dates may vary by reform element - check current gov.uk guidance for exact effective dates in 2026/27.
Who is eligible for SSP?
Three conditions ALL required (Section 152 + Schedule 11 SSCBA 1992, as amended by Employment Rights Bill). (1) Employee status: must be classified as an employee (not self-employed contractor, not most casual workers). (2) Period of Incapacity for Work (PIW): at least 4 consecutive days of sickness OR (post-reform) any day of sickness. (3) Notification of absence: must inform employer within the contractually specified time (commonly 1 day) - if no contractual provision, "as soon as reasonably practicable". Sickness can be physical or mental health condition. Self-certification: employee can self-certify for the first 7 days. From day 8 onwards, a Fit Note (Statement of Fitness for Work) from a doctor / nurse / pharmacist / physiotherapist / occupational therapist is required. Linking PIWs: two PIWs within 8 weeks count as a single PIW for SSP calculation - so the 28-week limit applies across the linked period, not per separate absence.
What is the difference between SSP and Occupational Sick Pay (OSP)?
SSP is the statutory minimum: £123.25/week, 28 weeks max, set by Parliament. OSP is contractual: typically more generous, varies by employer policy. Common OSP structures: (a) full pay for X weeks then half pay for Y weeks (e.g. 13 weeks full + 13 weeks half - typical NHS-style scheme); (b) full pay for 6-12 weeks then drop to SSP; (c) percentage of pay (e.g. 60% of salary for up to 26 weeks). OSP is NOT in addition to SSP - SSP forms part of OSP payment. Employer pays the higher amount = OSP. Worked example: OSP at full pay £600/week. SSP £123.25/week. Employer pays £600/week (OSP swallows SSP). Public sector + large private employers usually offer enhanced OSP; small businesses + zero-hours contracts typically offer SSP only. SSP is the FLOOR; nothing prevents employers offering more. Statutory protection: employer cannot pay LESS than SSP for an SSP-eligible employee even if contract says otherwise (Section 153 SSCBA 1992).
How long does SSP last?
Maximum 28 weeks per Period of Incapacity for Work. After 28 weeks the employer issues form SSP1 (within 7 days of the SSP ending) showing the dates SSP was paid + reason for termination. The employee uses SSP1 to claim Employment Support Allowance (ESA) from DWP or to apply for Universal Credit. 28-week clock: counts SSP paid not calendar weeks of absence. If you're absent for 30 weeks but the first 2 weeks were the pre-reform waiting period, you get SSP from week 3 to week 30 = 28 weeks SSP, then SSP1 transfer to ESA. Post-reform (no waiting period): SSP starts day 1, so 30 weeks absence = 28 weeks SSP then 2 weeks at ESA. Linking PIWs: if you return to work briefly then go off sick again within 8 weeks, the periods LINK for the 28-week SSP calculation. Worked example: 20 weeks sick, return to work for 4 weeks, then sick again. The 28-week SSP limit applies across the linked period - only 8 more weeks of SSP available before SSP1.
How is SSP calculated and paid?
Calculation: £123.25 × (working days off ÷ total working days in the week). Worked example: 5-day worker absent Mon-Wed only = 3 days SSP. £123.25 × 3/5 = £71.25 SSP for the week. Plus normal pay for Thu-Fri attended. Payment: via employer's regular PAYE payroll. Same payday as normal salary. Subject to Income Tax + Employee NI + Employer NI (at 15% from April 2025). Employer pays this on top of their normal employer NI on the SSP amount. Shown on payslip as a separate line typically labelled "SSP" or "Statutory Sick Pay". Tax treatment: SSP is taxable employment income (Section 660 ITEPA 2003). Doesn't reduce Personal Allowance differently from salary. Pension contributions: continue at the rate of the employee's NORMAL pre-sickness pay under Equality Act 2010 + Pensions Act 2014 - employer must continue full employer pension contributions on notional full salary during sickness absence, not on reduced SSP.
What is the SSP1 form?
Employer-issued form notifying that SSP is ending or that the employee is not eligible. Two scenarios trigger SSP1: (1) Ineligibility from outset: employee fails one of the eligibility tests. Employer issues SSP1 within 7 days of the absence claim, explaining why. Employee can claim ESA/UC directly from DWP using the SSP1 as evidence. (2) 28-week SSP limit reached: employer issues SSP1 within 7 days of the 28th week ending, showing the dates SSP was paid + transfer details. Employee takes SSP1 to DWP for ESA / UC claim. Common errors: employers don't issue SSP1 on time (employee may lose ESA backdating up to 3 months). Employer issues SSP1 with incorrect dates (DWP rejects claim, employee delays). Best practice: issue SSP1 BEFORE the 28-week point to give employee transition time. Disputes: if employee disagrees with SSP1 / SSP refusal, can refer to HMRC Statutory Payments Disputes Team for binding decision. HMRC enforcement: penalty up to £3,000 per case under Section 117 SSCBA for employer non-compliance.
Can self-employed people get SSP?
No - SSP is for EMPLOYEES only. Self-employed sole traders are not covered by SSP. Alternative protection options: (1) New Style Employment Support Allowance: contributory benefit available to self-employed who paid Class 2 NI in the relevant tax years (mainly 2023/24 + 2024/25 for current claims). New Style ESA pays £91.75/week assessment-phase rate, up to 1 year. (2) Universal Credit: means-tested, available regardless of employment status. (3) Personal Income Protection Insurance: private policy paying X% of income during sickness. Common premiums £20-£80/month for £30k cover, depending on age + occupation. (4) Critical Illness Cover: lump sum on diagnosis of specified conditions. From April 2024 Class 2 NI is no longer compulsory above the Small Profits Threshold (£7,105 for 2026/27) - self-employed with profits above SPT automatically get qualifying-year credits for State Pension AND New Style ESA eligibility without paying. Below SPT: voluntary Class 2 (£3.65/wk) preserves ESA eligibility. Most self-employed people seriously under-protect for illness risk; specialist financial advice useful.
What about long-term sickness beyond 28 weeks?
After SSP ends at 28 weeks, the employee transitions to DWP benefits: (1) New Style Employment Support Allowance (ESA): contribution-based benefit for those with sufficient NI record in the last 2-3 tax years. Pays £91.75/week assessment phase (13 weeks), then £91.75 or £138.20 depending on work capability assessment (Limited Capability for Work-Related Activity adds £42/wk). Time-limited to 365 days unless in support group. (2) Universal Credit: means-tested. £400.14/month standard allowance for single 25+, plus housing element + LCWRA element £400/month if assessed as having limited capability. Capital limit £16k - savings above this exclude UC entirely. (3) Personal Independence Payment (PIP): separate benefit for additional costs of living with health condition / disability. Not means-tested. Daily living component £73.90-£110.40/wk; mobility component £29.20-£77.05/wk. Can be claimed alongside ESA + UC. PIP application can take 6-12 months for decision. (4) Employment protection: Equality Act 2010 protects against disability discrimination - long-term sickness alone doesn't terminate employment, but the employer can fairly dismiss on capability grounds after reasonable adjustments + medical evidence following ACAS Code of Practice procedures.
Can employers reclaim SSP from HMRC?
No - the "Percentage Threshold Scheme" allowing employers to reclaim SSP if total SSP paid in a month exceeded 13% of their Class 1 NI bill was ABOLISHED on 6 April 2014 (Section 159A SSCBA 1992). Since then, employers bear the full cost of SSP. This was a significant change for small employers - particularly those with high-sickness-prevalence workforces (care homes, manufacturing, construction). The government's rationale: SSP is part of the normal cost of employment + the employer bears the burden equitably. One exception: small employers (Class 1 NI bill ≤£45k previous tax year) can still claim back STATUTORY MATERNITY/PATERNITY/ADOPTION/SHARED PARENTAL PAY at 103% (the 3pp uplift is "compensation"). But SSP itself: no reclaim. Practical implication: employers with chronic sickness issues face £6k-£20k/year of SSP cost per affected employee that comes straight off the bottom line. SME Insurance / Group Income Protection covers SSP costs in many cases - typical premium 0.5-2% of salary bill.
Can employees be dismissed during long-term sickness?
Yes, but with strict procedural protections. Long-term sickness absence (typically 6+ months) can be a fair reason for dismissal under Section 98 Employment Rights Act 1996 - "capability" reason. BUT employer must follow proper procedure: (a) consult with the employee about the absence and prognosis; (b) obtain medical evidence; (c) consider Reasonable Adjustments under Equality Act 2010 (if disability applies); (d) consider redeployment options; (e) warn the employee that dismissal is being considered; (f) hold a formal capability hearing with right to appeal. Equality Act protections: if the sickness amounts to a "disability" under Section 6 EA 2010 (substantial + long-term adverse effect on day-to-day activities), employer must make Reasonable Adjustments before dismissing. Cancer, MS, HIV are automatically disabilities; depression / chronic pain often qualify if long-term. Failure to follow process: Unfair Dismissal claim (up to 1 year salary capped at ~£93k 2025/26 + uplift). Discrimination claim: uncapped compensation including injury to feelings, future loss. ACAS Code of Practice followed = baseline procedural compliance.
What records does the employer need?
Section 12B TMA 1970 + Regulation 6 SSP (General) Regs 1982 - keep for 3 years after the tax year of SSP payment. Required records: dates of sickness absence; self-certification statements (first 7 days); Fit Notes (from day 8 onwards) including issued-by clinician details; SSP calculation showing weekly pay used + days SSP paid + total SSP; SSP1 forms issued (with date + reason); employee notification timestamps. HMRC's Statutory Payments Disputes Team can request records during enquiry. Most employers use payroll software (BrightPay, Moneysoft, Xero Payroll, Sage Payroll) that auto-generates compliant SSP records as part of standard payroll. Common deficiencies: employers fail to keep Fit Notes (employees should send originals or scanned copies). SSP calculation worksheets not retained. SSP1 forms not date-stamped. HMRC scrutiny on enquiry can extend back 3 years; deliberate underpayment can extend to 6 years under general Schedule 24 FA 2007 penalty rules. Penalty for record-keeping failure: up to £3,000 per case under Section 117 SSCBA 1992 (separate from underpayment penalty).
Related calculators and guides
- SSP calculator - interactive SSP eligibility + amount calculator.
- SMP comprehensive guide - related statutory pay framework.
- Statutory Redundancy comprehensive guide - long-term illness can lead to capability dismissal.
- Universal Credit calculator - benefit alternative after SSP ends.
- National Insurance rates - SSP is subject to NI like normal salary.
- Voluntary NI Class 3 contributions - protect ESA eligibility during low-earnings periods.
- Self-employed expenses checklist - SE workers excluded from SSP, need alternative protection.
- NMW employer guide - related employer-side employment law.