From 6 April 2026, Statutory Sick Pay became payable from the first full day of sickness absence, the earnings threshold was removed, and the weekly amount became the lower of £123.25 or 80% of average weekly earnings. Paternity Leave and Unpaid Parental Leave also became day-one rights. Your payroll settings, absence records and policies need updating now. The chartered accountants in Stockport at U&W can review the impact.
The changes affect payroll figures, new-starter information and sickness absences that began around 6 April. Reliable payroll services in Stockport can reduce the risk of applying old waiting days or paying the wrong amount.
Absence dates, employee notices, average earnings and qualifying days should match each payroll entry. Bookkeeping services in Stockport make it easier to reconcile statutory payments, PAYE and cash flow.
What changed from 6 April 2026?
| Area | Current rule | Payroll check |
|---|---|---|
| SSP eligibility | No Lower Earnings Limit for eligible employees | Remove earnings-threshold exclusions |
| SSP start date | Payable from the first full qualifying day | Remove the previous 3 waiting days |
| SSP rate | £123.25 a week or 80% of average weekly earnings, whichever is lower | Check lower-paid staff calculations |
| Paternity Leave | Available from the first day of employment | Update starter and leave processes |
| Statutory Paternity Pay | The 26-week service and earnings tests still apply | Separate leave from pay eligibility |
| Unpaid Parental Leave | Available from the first day of employment | Accept requests from new starters |
| Bereaved Partner’s Paternity Leave | Up to 52 weeks of unpaid leave may be available from day one | Add a sensitive request process |
Check the SSP calculation
Do not assume every eligible employee receives £123.25 a week. That is the maximum flat rate. An employee with average weekly earnings below £154.06 will normally receive 80% of those earnings.
Suppose a part-time employee earns £110 a week. Their weekly SSP basis is £88. Payroll must convert this into the correct daily amount using their qualifying days. Applying the flat rate could create an overpayment.
Identify absences that began before 6 April 2026 because transitional rules can apply. Check the start date before replacing an existing calculation. U&W’s guide to 5 payroll problems small employers can avoid explains why payroll cut-off checks matter.
Separate leave from pay
Paternity Leave is now a day-one right, but Statutory Paternity Pay is not. An employee still normally needs 26 weeks of continuous employment by the qualifying week and average weekly earnings of at least £129.
A notice rule matters. For newly eligible birth parents whose baby is due between 5 April and 25 July 2026, the normal 15-week notice requirement is reduced to 28 days. Standard notice rules return for babies due on or after 26 July 2026.
Write this distinction into your policy. Otherwise, a manager may approve valid leave but incorrectly promise statutory pay. Related checks include tax codes covered in the BR tax code guide and deductions explained in the guide to employee National Insurance contributions.
Review recovery and cash flow
You cannot reclaim SSP from HMRC. In 2026/27, qualifying small employers can reclaim 109% of Statutory Maternity, Paternity, Adoption, Shared Parental, Parental Bereavement and Neonatal Care Pay. Other employers can generally reclaim 92%.
Do not confuse this with the Employment Allowance, which reduces eligible employer Class 1 National Insurance liabilities. Review it separately from employer National Insurance rates and statutory payment recovery.
If several employees take leave close together, monthly management accounts services can help forecast wages and recovery timing. Accurate corporation tax return services also depend on payroll costs being posted correctly.
Update your payroll checklist
Before the next pay run:
- Confirm your software uses the 2026/27 SSP rules.
- Review absences spanning 6 April 2026.
- Check qualifying days and average weekly earnings.
- Update paternity, parental and bereavement policies.
- Check whether family pay is recoverable at 109% or 92%.
- Reconcile payroll totals with your accounts.
Useful guides cover small business bookkeeping records, keeping bookkeeping organised, P60 responsibilities, tax-free mileage payments and why Xero still needs professional review. Working with Xero certified accountants can help ensure software settings match your employment arrangements.
Frequently asked questions
Can small employers reclaim SSP in 2026?
No. SSP cannot be reclaimed from HMRC. Qualifying statutory family payments can be reclaimed, with small employers able to recover 109% in 2026/27.
Is Paternity Leave now a day-one right?
Yes. Eligible employees can take Paternity Leave from the first day of employment. Statutory Paternity Pay still has separate service and earnings conditions.
How much is SSP in 2026/27?
The weekly amount is £123.25 or 80% of average weekly earnings, whichever is lower. The payment then depends on the employee’s qualifying days.
Get your payroll settings checked
A payroll error can continue for several periods. U&W can review your SSP settings, statutory family pay, records and HMRC submissions, while helping directors who need self assessment tax return support. Contact U&W to arrange a payroll review before your next pay run.
