From April 2026, statutory sick pay rules are being overhauled, and while the headlines focus on worker protection, the real impact may land squarely on employers. The lower earnings threshold of £125 per week is being removed, instantly widening eligibility.

In simple terms, far more employees will qualify for sick pay than before. At the same time, the payment model is changing. Instead of a flat weekly figure, sick pay will be set at £118.65 or 80% of weekly earnings, whichever is lower. The biggest shift, though, is the removal of the three unpaid waiting days.

Employees will now be paid from day one of illness. That single change alone has the potential to increase short-term absences and push up overall payroll costs, especially in large or shift-based workforces.

While the intention is to discourage people from working while sick, the flip side is clear. More eligibility plus immediate payment lowers the barrier to taking time off, which could translate into more frequent absences and reduced day-to-day productivity. Businesses that already struggle with staffing gaps may feel the pressure first.

There is also a financial contradiction built into the system. The payment is still capped at a relatively low level, meaning many lower-paid employees may not actually be able to afford extended time off. So employers could end up facing higher absence rates without necessarily solving the underlying issue of presenteeism.

For organisations, this is less about policy wording and more about operational risk. Absence tracking, return-to-work conversations, and proper documentation will stop being “nice to have” processes and become essential controls.

Companies that fail to tighten their sickness management now risk walking into 2026 with higher costs, thinner productivity, and very little visibility over why it is happening.