DWP hands pay boost to 15 million people after law change

A new law change in 2026 is set to hand workers more money if they are off sick.

The new Employment Rights Act will remove the waiting period for statutory sick pay (SSP) and remove the minimum earnings limit to get paid for illness. It means that from April, workers will be paid from the first day they’re ill rather than having to wait several days, and will be able to get sick pay even if they earn less than £125 a week, as the previous minimum is being abolished. The government says more than 15 million workers across the UK are set to benefit from the changes when the bill becomes law and goes into effect this spring.

Under current rules, workers can get £118.75 per week statutory sick pay for up to 28 weeks, and will be paid this for all the days they’re off ill that they normally would have worked - except for the first three. So at the moment, workers who are eligible for sick pay are only paid from their fourth working day of sickness.

Workers will only be paid sick pay for the first three working days if they’re off sick and have received SSP within the last eight weeks, and this must have included a three-day waiting period before being paid.

But from April, workers will receive a higher rate of £123.25 per week and will get this from the very first day of illness, rather than from the fourth.

Explaining the changes, the Department for Work and Pensions (DWP) said: “Up to 1.3 million employees earn below the Lower Earnings Limit, the changes we are making will bring these individuals into eligibility for Statutory Sick Pay providing them with a form of financial security during sickness absence.

“Around 25% of all employees receive only Statutory Sick Pay during a period of sickness absence, the changes being made by the Act mean these individuals will receive sick pay from their first day of absence.”

The government has said the changes will be introduced gradually from April 6 over a two-year period to allow businesses plenty of time to prepare.

According to the DWP, the removal of the waiting period means that no employees will be entitled to less SSP for the first three weeks of a sickness absence, which the DWP Employee Survey 2023 estimates to represent 87% of all sickness absences. As such, the employees are more likely to be better off overall as a result of the changes.

The new rights have been praised by unions and businesses, with the changes helping to ensure fair treatment for workers, no matter their employer.

Chris O’Shea, Chief Executive of Centrica said: "We’ve seen first-hand that a business thrives when its people thrive and so a stable, fair framework for work helps businesses plan, invest and grow with confidence. In the long run, what is good for workers is also good for business and that is ultimately good for the economy as a whole.

"We are delighted to see Royal Assent to the Employment Rights Act which provides greater clarity and certainty for employers and employees alike."