Millions of UK workers will receive sick pay from the first day they fall ill from today, in a landmark shift designed to protect incomes and curb the spread of workplace sickness. The change, which abolishes the previous three-day waiting period, forms the centrepiece of a major overhaul of Statutory Sick Pay (SSP) coming into force.
The reforms, enacted under the Employment Rights Act 2025, represent the most significant expansion of sick pay rights in a generation. Alongside day-one entitlement, the government has also scrapped the Lower Earnings Limit, a rule that previously barred anyone earning less than £125 a week from claiming SSP at all. This dual change is forecast to benefit up to 9.6 million people across the country.
Targeted Support for Lower-Income Workers
The impact of these changes will be felt most acutely by lower-income households. According to an analysis by the Trades Union Congress (TUC), 8.4 million workers who already qualified for SSP will now receive it from day one, while 1.2 million more people—previously excluded by the earnings threshold—will gain eligibility for the first time.
This expansion will disproportionately benefit women, who are overrepresented in lower-paid and part-time roles. Analysis suggests around 3.9 million working women will gain from day-one sick pay, with over 830,000 becoming newly eligible for any SSP at all; women were twice as likely as men to earn below the old threshold. The TUC said the move would remove the pressure on lower-income households, who have historically faced the impossible choice between going to work ill or losing much-needed income.
The calculation for SSP itself has also been revised. Payments will now be the lower of 80% of an employee’s average weekly earnings or a flat statutory rate, set at £123.25 from today. This ensures lower-paid workers receive a sum more closely aligned with their usual take-home pay. The TUC estimates the economic benefits of day-one sick pay will be five times the costs, with one analysis suggesting a £10 billion boost to the economy from the reforms.
Business Concerns Over Cost and Implementation
Despite widespread public support—76% of voters surveyed by the TUC back day-one sick pay—the changes have sparked concern from some employers. Business groups warn that the new obligations are landing at a time of significant financial pressure.
Neil Carberry, the chief executive of the Recruitment and Employment Confederation (REC), said firms were already grappling with increases to the national minimum wage, payroll tax hikes, and energy price rises. He warned the cumulative pressure was forcing some bosses to cut staff and raise prices. “We are at a tipping point,” Carberry said. “The changes to statutory sick pay introduced this week will also cause chaos if not coupled swiftly with better guidance for firms, as a small minority of workers will try to defraud firms.”
A poll found almost half of small and medium-sized enterprises feel unprepared for the changes, with 75% fearing financial exploitation. Many had relied on the three-day waiting period as a de facto absence management tool. The REC has previously called for government support to help businesses, particularly those employing temporary staff, manage the increased costs.
The sick pay reforms are part of the first tranche of measures under the Employment Rights Act 2025. Other changes taking effect from today include making paternity leave and unpaid parental leave day-one rights, introducing a right to one week of unpaid bereavement leave, and extending whistleblowing protections to cover worker disclosures of sexual harassment. A new single enforcement body, the Fair Work Agency, is also being established.
Transitional provisions are in place for existing sickness absences. Workers whose absence began before April 6, 2026, and continues beyond it may be protected from a reduction in pay, particularly those earning between £125 and £154.05 per week who were already on SSP. Employees previously ineligible due to low earnings may become entitled from today if their absence started on or after September 22, 2025.
