The UK government is set to roll out a series of important changes that will benefit millions of low-paid workers, including potential reforms to Statutory Sick Pay (SSP) that aim to improve access and financial support from the very first day of illness.
While some headlines have referred to a flat-rate £100 per week payment, the facts reveal a more nuanced picture. The proposed changes are part of a broader legislative effort under the draft Employment Rights Bill, and although the most significant reforms are expected to come into effect in 2026, some measures may begin impacting workers as early as this year.
What’s Changing in 2025?
The Department for Work and Pensions (DWP) has confirmed that Statutory Sick Pay (SSP) will increase from £116.75 to £118.75 per week, starting 6 April 2025. This is part of the government’s routine annual uprating of statutory payments and reflects cost-of-living adjustments.
Under the current system, SSP is paid by employers for up to 28 weeks to eligible employees who are too ill to work. However, not all workers qualify. In 2024, to receive SSP, employees needed to earn at least £123 per week (the Lower Earnings Limit), and payments only began after three unpaid “waiting days.”
These rules have long been criticised for excluding the most vulnerable, especially part-time, freelance, or zero-hours contract workers, many of whom earn below the weekly threshold or cannot afford to miss pay for even a few days.
What’s in the Pipeline?
The Employment Rights Bill, currently under parliamentary review, proposes several key reforms:
- Removal of the Lower Earnings Limit
Around 1.3 million low-paid workers who currently earn below the minimum threshold would become eligible for SSP. This would allow more flexible and part-time employees to claim sick pay potentially for the first time. - SSP From Day One
The current three-day waiting period for SSP may be abolished, meaning workers would receive sick pay from the first day of illness. This change aims to encourage people to take time off when needed and reduce the spread of illness in workplaces. - Pro-Rated Sick Pay for the Low Paid
The bill also outlines that workers below the earnings threshold may receive 80% of their average weekly earnings, or the full SSP rate whichever is lower.
These proposed reforms would mark the biggest change to sick pay rights in decades, aligning with recommendations from think tanks and health policy advocates who have argued that the current system discourages sick employees from taking necessary leave.
Related reading:
- UK Government – Statutory Sick Pay (SSP) Rates and Eligibility
- Employment Rights Bill – Draft Overview
Is £100 Per Week a Guaranteed New Rate?
Despite reports that the government will provide a flat £100 per week sick pay from April 2025, this figure is not officially confirmed as a fixed rate under DWP policy.
The £100 figure may reflect an estimated average payout for certain categories of workers once the pro-rated system is introduced under the Employment Rights Bill. However, the official SSP rate remains £118.75 per week from April 6, 2025, for those meeting eligibility.
It’s important to note that the bill is still under development, and while the government has signalled its intent to improve sick pay coverage, the timeline for full implementation remains tentative.
External reference:
The Bigger Picture: Worker Protection and Health
The COVID-19 pandemic exposed significant shortcomings in the UK’s statutory sick pay system, especially in its inability to cover low-paid and gig-economy workers. A 2020 report by the Trades Union Congress (TUC) described the UK’s SSP as one of the lowest among developed nations.
Removing the three-day waiting period is particularly seen as a public health measure, ensuring workers don’t feel pressured to attend work while unwell. Critics argue that even a short delay in payment can make the difference between staying home sick and risking workplace contagion.
Frances O’Grady, former General Secretary of the TUC, said in a 2022 briefing, “No one should be forced to choose between their health and putting food on the table. Sick pay should be available to everyone, from day one.”
What Employers Need to Know
Employers will still be responsible for paying SSP to eligible staff, though the government may consider support for small businesses adjusting to the broader coverage.
Experts recommend that businesses:
- Review internal HR policies in anticipation of these changes.
- Monitor government announcements and final bill enactments.
- Prepare payroll systems for potential eligibility expansions and payment timing changes.
When Will the Full Changes Be Enforced?
While the increase in SSP rates will definitely take effect from 6 April 2025, the more substantial reforms under the Employment Rights Bill such as first-day payments and eligibility expansions are expected to take effect in 2026, depending on the bill’s progress through Parliament.
Final Thoughts
The upcoming changes to sick pay in the UK signal a positive step toward a more inclusive and fairer welfare system, particularly for low-paid and precarious workers. While some headline claims such as a flat £100 weekly payment may be misleading, the direction of reform is clear: better protection, wider eligibility, and quicker access to financial support during illness.
As legislation evolves, employees and employers alike are encouraged to stay informed through official channels such as GOV.UK and Parliament Bills and Legislation, ensuring readiness for these potentially transformative reforms.
Pankaj Kumar is a journalist at Chandigarh X, covering admit cards, recruitment, and government schemes. His articles provide readers with detailed insights into application processes, eligibility, and exam updates.
Outside of work, Pankaj enjoys traveling, fitness, and cricket, often participating in local matches on weekends.