24/03/2025

The UK Government recently published its response to Making Work Pay: Strengthening Statutory Sick Pay (SSP) on 4 March 2025.  Then on 14 March 2025, the government responded to a report published by the House of Commons Work and Pensions Committee entitled Statutory Sick Pay

We have set out these key updates arising from these documents and the implications for Northern Ireland employers below.

Northern Ireland and SSP Changes

Although SSP is a transferred matter in Northern Ireland, meaning that it is the responsibility of the NI Assembly to decide how to proceed, historically we have always maintained parity with GB.

The Government’ response confirms that that will continue to be the case. It states:

“SSP is a transferred matter in Northern Ireland, however following extensive engagement with the Department of Communities, both governments agreed to bring forward amendments to extend these changes to Northern Ireland, including the percentage rate of 80%. Therefore, subject to the approval of a Legislative Consent Motion by the Northern Ireland Assembly, parity will be maintained in relation to SSP. We will continue to work closely with the Department for Communities in Northern Ireland as the Bill progresses.”

Therefore Northern Ireland will implement these changes in the same way and at the same time as GB.

Planned SSP changes

 The changes that will be made to SSP are as follow:

1. SSP Rate Adjustments: A new rate for SSP will be set at either 80% of weekly earnings or the existing flat rate (increasing from £116.75 to £118.75 per week as of April 2025). This new higher flat rate of SSP (£118.75) only comes into effect only in April 2025 in line with usual annual increases that we expect. The other, more fundamental, changes to the SSP regime currently have no date for implementation at this stage.
2. When the more fundamental changes come into effect it does mean that for some employees they maybe worse off under the when these changes take e as they will receive 80% of their salary rather than the flat rate. For example, an employee earning £125, which is slightly above the lower earning threshold, would currently receive £116.75. Under the new regime they will receive a lower sum of £100.

The Government refused calls to align SSP to levels of other benefit such as SMP (which increases to £187.18 or 90% of the employee’s average weekly earnings, whichever is lower in April 2025) for reasons that includes SMP is a planned absence that is paid for different reasons and small employers can recoup up to 92% of it.

3. Removal of the Waiting Period: SSP will be paid from Day 1 of absence rather than Day 4.

4. Elimination of the Lower Earnings Threshold: The Lower Earnings Threshold is currently £123 per week rising to £125.00 or more per week  in April 2025. When implemented, all employees, regardless of income, will qualify for SSP.

These changes will be made to the GB Employment Rights Bill, which is currently progressing through Parliament and currently being considered in the House of Lords with its Second Reading on 27 March 2025.

What’s Not Changing

Again despite calls for a rebate scheme the Government has confirmed that there will be no Rebate Scheme for Small Businesses.

Instead the Government has said it will consider how employers can be supported in promoting healthy workplaces that enable people to stay in, or return to, work.

The government has also confirmed that there will be no reduction in Self-Certification Period which will remain at 7-days when the employee can self-certify as being not fit and only expected to obtain a Fit Note from Day 8.

Timeline and Implementation

The GB Employment Rights Bill is expected to gain Royal Assent before the 2025 summer recess. However, SSP changes will not take effect immediately—they will be implemented only once the Act’s provisions are commenced. The government has assured that employers will have sufficient time to prepare for these changes. At this point (other than the annual increase to the rate) there is no date for implementation.

In Northern Ireland, the rollout of these changes is expected to align with the GB timeline, subject to the necessary approval processes.

We will keep you updated as the legislative process unfolds to ensure readiness for these significant SSP reforms. Clear communication with employees and adjustments to internal policies will be key to ensure a smooth transition.