2026 Statutory Sick Pay: is your business ready?

If Statutory Sick Pay is something you only think about when someone calls in sick, it is probably being managed reactively. 

It is logged if someone remembers. Managed differently depending on the manager. Rarely reviewed unless it becomes a problem. 

And that is exactly where the risk sits. 

Because from April 2026, that reactive approach is going to get much harder to defend. 

The government has confirmed reforms to Statutory Sick Pay aimed at widening access and strengthening employee protection. While some detail is still being finalised, the direction is clear. 

SSP is becoming more visible. 
More consistent. 
And less forgiving of informal processes. 

This is not about adding red tape. 

It is about getting the basics right before absence issues quietly escalate behind the scenes. 

Why the 2026 SSP changes matter more than you think 

Many businesses see SSP as a payroll issue. 

Something that sits with the numbers rather than the people. 

But that is a mistake. 

Payroll can only ever be as accurate as the information it receives. If sickness absence is not recorded properly, payroll errors are almost guaranteed. 

Missed days. Wrong dates. Incorrect payments. 

That creates risk. Not just financially, but relationally too. Underpayments and overpayments quickly turn into complaints, frustration and loss of trust. 

From a people management perspective, the bigger issue is fairness. 

When one employee’s sickness is recorded properly and another quietly takes annual leave instead, consistency disappears. Even if your intention was to be kind, the impact is the opposite. 

These are the exact situations that resurface later, usually at the worst possible time. 

What is actually changing with Statutory Sick Pay? 

The key shift for businesses is this. 

SSP is becoming more accessible and more closely monitored. 

The reforms are expected to reduce barriers to eligibility and place greater emphasis on accurate recording and consistent handling of sickness absence. 

In simple terms, that means sickness absence data matters more than ever, payroll and HR records need to match and inconsistent practices will be harder to justify. 

For SMEs, this is where problems often arise. Not because anyone is doing the wrong thing deliberately, but because processes have grown organically over time. 

What worked when you had a small team often starts to creak as you grow. 

Where SMEs usually fall down 

In most small businesses, sickness absence management is not broken. 

It is just loose. 

Absence is not always recorded.  Reasons are vague. Fit notes are misplaced. 
Return to work conversations happen sometimes, but not always. 

Individually, these things feel minor. Collectively, they create risk. 

When absence levels increase or a difficult conversation is needed, there is nothing solid to fall back on. Decisions feel reactive. Managers feel exposed. Employees feel treated differently. 

And that is when problems escalate. 

What good sickness absence management really looks like 

This does not require a complex system or an HR department. 

It requires discipline. 

Every episode of sickness absence should be recorded. When it started. When it ended. And why the employee was off. If a fit note exists, keep a copy. 

This is not bureaucracy. It is basic protection for your business. 

Managers also play a key role. A short return to work conversation every time someone is off sick sets expectations, helps spot patterns early and shows that absence is noticed and managed. 

Many businesses already have a template for this. Even if it is not perfect, using it consistently matters far more than rewriting it. 

Regular monitoring makes a difference too. A simple monthly review and a brief mention in management meetings, keeps absence on the radar without making it feel heavy handed. 

Some businesses also use a scoring approach to trigger conversations once absence reaches a certain level. The value is not the score itself. 

It is the consistency. 

One rule. Applied fairly. Every time. 

One thing to be cautious of is the informal swapping of sickness for short notice holidays. It often feels supportive in the moment, but it quickly undermines trust when others realise different rules apply to different people. 

Is it time to rethink sick pay altogether? 

The SSP reforms are also a useful prompt to review what you offer beyond the statutory minimum. 

Some businesses stick with SSP only. Others offer a limited number of days at full salary before SSP applies. There is no one-size-fits-all answer. 

What matters is clarity. 

Whatever you offer needs to be documented, understood and managed properly. 

A common fear is that enhanced sick pay leads to people taking advantage. In reality, where absence is monitored, return to work conversations happen and expectations are clear, this risk is usually far lower than expected. 

What you can do now 

You do not need to wait until April 2026. 

In fact, waiting is where most problems begin. 

Now is the time to tighten recording processes, make sure managers understand their role and look honestly at how sickness absence is handled day to day. 

These steps are sensible regardless of legislative change. They give you clarity, consistency and control. 

And they make the 2026 SSP changes far less daunting. 

Want help getting this right? 

Inside Dakota Blue Academy, we have created a practical Sickness and absence management policy and procedure designed specifically for SMEs. 

It sets out a clear, compliant approach to managing sickness absence, helping you reduce risk and avoid inconsistency. 

Join Dakota Blue Academy today.