SSP Is Changing in 2026, And It’s Going to Hit Agencies Harder Than They Expect
Most recruiters think of Statutory Sick Pay (SSP) as background admin — inconvenient, yes, but predictable.
April 2026 will challenge that assumption.
Under the Employment Rights Bill, SSP rules are changing in ways that will affect every employer, including employment businesses supplying PAYE temps. And if you’re used to operating with tight margins, fast turnaround times, and sick days that already cause disruption, now is the time to pay attention.
SSP will be payable from day one
The current 3-day waiting period is being abolished.
From April 2026, SSP kicks in from the first day of absence.
That means:
- Faster liability
- More admin
- Less buffer time
- Increased cost exposure for temp suppliers
Agencies with high-volume PAYE workforces will feel this most sharply.
Statutory payment rates are increasing
SSP will rise to £123.25 per week, and other statutory payments (maternity, paternity, adoption) will rise to £194.32 per week.
That’s more cost, more calculation complexity, and higher stakes for getting it wrong.
Contracts, payroll processes and software will all need updating
This is not a “wait until April” task. To remain compliant, businesses will need to review:
- Worker contracts
- Internal policies
- Payroll systems
- Absence processes
- Temp management workflows
This isn’t optional. It’s operational.
Agencies must prepare now, not next spring
The biggest mistake employers make with statutory change is assuming payroll will sort it out. This level of update impacts:
- Client terms
- Worker relations
- Internal SLAs
- Cost modelling
- Margin protection
The agencies that move early will absorb the change smoothly.
The ones that don’t will feel it everywhere.
Want clarity on SSP, the Employment Rights Bill, and what else is coming in 2026?
We’re holding a Seminar where we’ll be covering:
- SSP changes and what they mean commercially
- New employment rights
- Joint and several liability for umbrella employment taxes
- What hirers will expect from agencies
- How to prepare before these reforms reshape the market
Hear directly from Lawspeed specialists, HMRC and DBT on how to prepare your business.
📅 14 January 2026
📍 BMA House, London
🔗 Register here
We are Lawspeed. The UK’s original recruitment law specialist.
