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
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
