Statutory Sick Pay has changed - What dental practice owners need to know (and why it’s OK to feel concerned)

By Sarah Buxton

Running a dental practice has never been simple. Cash flow pressures, rising employment costs, regulatory change, and the emotional responsibility of supporting your team all tend to land at the same time.

So if the recent changes to Statutory Sick Pay (SSP) have made you pause or even feel anxious then that reaction is entirely understandable.

From 6 April 2026, SSP has undergone the most significant reform in a generation under the Employment Rights Act 2025. The intention is to improve financial security for workers when they are ill - but for employers, particularly small and medium‑sized businesses, the changes bring genuine cost and operational implications.

What has actually changed?

There are three core SSP changes now in force:

1. SSP is payable from day one

Previously, the first three sick days were unpaid ‘waiting days’. That buffer is gone. Employees are now entitled to SSP from their first qualifying day of sickness. This means that short-term absences that once cost nothing now carry an immediate payroll cost.

2. The Lower Earnings Limit has been abolished

Employees no longer need to earn a minimum weekly amount to qualify. This extends SSP eligibility to part‑time, casual, zero‑hours, and lower‑paid staff who were previously excluded. If your workforce includes flexible or lower‑paid roles, SSP exposure may increase materially.

3. SSP is now percentage‑based for lower earners

SSP is calculated as the lower of:

• 80% of an employee’s average weekly earnings, or

• The flat SSP weekly rate (£123.25 for 2026/27).

This means that lower earners may receive proportionally higher support than before, but employers still fund the full cost.

Why this feels hard for business owners

It’s important to say this clearly that being concerned about cost does not mean you don’t care about your employees.

Many employers already:

• Pay enhanced company sick pay

• Manage tight margins

• Absorb wage increases, pension contributions, and NI changes.

  
  

SSP reform shifts more financial responsibility onto employers at a time when many businesses are already stretched. Removing waiting days means there is no longer a natural brake on very short absences, and universal eligibility increases both frequency and volume of payments. These are not abstract or political worries - they are practical, cash‑flow‑based concerns, and they are legitimate.

Practical steps to protect your business

You cannot avoid SSP - but you can manage the risk.

1. Review your sickness absence policy

Make sure it:

• Reflects day‑one SSP entitlement

• Distinguishes between short‑term and long‑term absence

• Sets clear expectations around reporting illness.

Clear rules reduce uncertainty and misuse.

2. Train managers on early conversations

Return‑to‑work discussions matter more than ever. Handled well, they:

• Reduce repeat short‑term absence

• Identify underlying issues early and tackle them with HR support.

If you’re looking for support in keeping on top of these types of changes, we can help.

Our Oracle Employment & HR Service members consistently tell us they value having us in their corner to take the headache out of HR and employment law compliance, giving them confidence that nothing gets missed and their policies stay up to date.

If the changes to SSP feel like just one more thing to manage on top of an already busy practice, you don’t have to navigate it alone. We can help you review your policies, support your managers, and put practical systems in place that protect your business and your team.

Find out more or contact us on 0330 088 2275 or info@buxtoncoates.com to see how we can support you.