There are changes ahead both with Sick Pay & Student Loans, see below for more information.

From 6 April 2026, UK Statutory Sick Pay (SSP) changes under the Employment Rights Act 2025 will take effect, making it payable from the first day of illness, removing the three-day waiting period. The lower earnings limit (LEL) will be scrapped, extending eligibility to all earners, and payments will be 80% of earnings or the statutory rate, whichever is lower.

Key Changes from 6 April 2026

* Day One Entitlement: The standard 3-day “waiting period” is abolished. SSP will be paid from the very first day of sickness.
* Removal of Lower Earnings Limit (LEL): Workers no longer need to earn a minimum amount (previously £125/week) to qualify, opening access to low-paid and part-time workers
* New Calculation Method: For lower earners, SSP will be calculated as 80% of their average weekly earnings, or the statutory flat rate (expected to be £123.25/week), whichever is lower.
* Ongoing Absences: For illnesses that start before 6 April 2026 but continue after that date, the new rules will apply for days missed from 6 April onwards.

Action Needed for Employers

Employers should review their company sick pay policies, as they may need to update employment contracts and HR systems to remove references to the old 3-day waiting period and lower earnings limit.

Key Student Loan Changes (2025-2027)

* Plan 2 Thresholds (April 2026): The threshold will rise to £29,385 a year (£2,448/month)
* Plan 2 Freeze (April 2027): The threshold will remain at £29,385/yr instead of increasing
* Postgraduate (Plan 3) 2026: Repayment threshold confirmed at £21,000 annually
* Plan 5 (New Loans): Repayments begin April 2026, with a £25,000 yearly threshold (£2,083/month)

Due to this change HMRC have a New Starter Checklist that must be used from April 2026, which you can download from HMRC, or email Sarah who will send you a copy.

If you have any questions then please get in touch with Sarah sarah@jlpayroll.co.uk