67% of Employers Say They Needed More Notice Before the Changes to Statutory Sick Pay

Over two-thirds (67%) of employers would have preferred more notice to deal with the forthcoming (April 2026) changes to statutory sick pay (SSP), according to GRiD research. The industry body for the group risk sector found that, despite this, 60% of employees support the changes that will introduce SSP from the first day of illness, rather than the fourth, remove the lower earnings limit, and require a new earnings-related method of calculation.

The research also highlighted the fact that 18% of employers believe that the changes to SSP will present a significant challenge to their business in the next 12 months – rising to nearly a quarter (24%) of large employers with over 250 staff.

Of those employers who feel the changes will be a challenge to their business, 47% said they will respond by reducing the generosity of other employee benefits, 42% will increase the prices of their products or services, 36% will look to reduce employment costs (such as reducing headcount), and 31% may look to reduce the generosity of employer pensions contributions.

Katharine Moxham, spokesperson for GRiD, said:

“The new statutory sick pay changes, part of the Employment Rights Act 2025, are well-intended and rightly seek to strengthen support for employees during periods of illness or injury. The Act, which received Royal Assent in December 2025, left employers with only around four months to overhaul payroll systems and update policies ahead of the April 2026 deadline. These are not insignificant operational challenges for businesses to absorb at a time when they are already contending with rising costs and sustained economic pressures. Indeed, the research has found that some businesses are not prepared to simply absorb the cost and will be looking to make cuts in other areas.”

GRiD cautions that although the changes are likely to be welcomed by employees, SSP alone is unlikely to provide sufficient financial security for those who need time away from work due to illness or injury, even when it is paid from day one.

The most effective way employers can support their workforce, is to take a proactive view of support, ensuring employees have access to a coordinated and comprehensive package that goes well beyond statutory payments and has the shared goal of enabling a sustainable return to work. This should include meaningful income replacement, vocational rehabilitation services, timely access to GPs and treatment, employee assistance programmes, and mental health support, all working together to expedite a return to the workplace.

Some employee benefits, such as group risk benefits (employer-sponsored life assurance, income protection and critical illness benefits), include these and other proactive services designed to reduce sickness absence before it happens, which could help an employer reduce their higher statutory sick pay costs expected from April.

Katharine Moxham continued:

“Even when statutory sick pay is paid from day one it is unlikely to make a significant difference for most employees. What actually makes an impact is well-designed, proactive support, support that helps prevent illness by encouraging healthier lifestyles, provides timely and effective help when people are off work, and is firmly focused on enabling a safe and swift return to work.”

“While many employers are underprepared for the pace of change and concerned about the practical and financial impact of the statutory sick pay reforms, it is vital they remain focused on what truly matters, ensuring their people are fully supported, both financially and otherwise, when they are off sick. This can only be achieved through well-designed and thoughtfully implemented employee benefits.”