SSP from day one: Practical steps UK employers need to consider now to reduce absence rates and costs

Absence management is under the spotlight with SSP changes coming in April 2026. The Employment Rights Act (ERA) will make Statutory Sick Pay (SSP) payable from day one and remove the lower earnings limit, meaning every employee will qualify. This is happening at a time when CIPD data shows absence rates are higher than ever, so many organisations are already under growing pressure that these reforms will ramp up further.

With SSP from day one impacting the bottom line, and short-term absence expected to increase with the new day one rights, managers, operations and budgets are feeling the strain. Updating absence policies and payroll systems has been priority one for HR, but going forward into the new legislative era, HR leaders need to be prioritising taking a data-driven and proactive approach to absence management.

The cost of SSP employers are facing

The SSP changes have increased the direct cost of sickness absence for many employers. The UK government’s impact assessment estimated that extending SSP from day one and removing the Lower Earnings Limit would add around £450 million a year in employer costs, although the impact varies significantly depending on workforce profile.

For organisations with large frontline workforces or high levels of short-term absence, even a small increase in one- and two-day absences can quickly add up. Absences that previously fell outside SSP eligibility may now require payment, making early intervention and effective absence management more important than ever.

The priority for HR is no longer simply updating policies and payroll systems to reflect the new legislation. It’s understanding how absence patterns are changing, identifying where costs are increasing, and giving managers the tools and confidence to intervene early. That starts with having the right data.

A data-driven approach to absence

Without accurate absence data, it’s difficult to understand how the new SSP rules are affecting your organisation. HR teams need a clear baseline to track changes in absence patterns, identify where costs are increasing and target interventions where they’ll have the greatest impact.

This requires robust, fit-for-purpose technology that ensures the right data is captured to identify the root causes of issues that may be impacting the wellbeing of employees, such as workload pressures or cultural issues. With the pressures of the modern workforce in the new legislative landscape, the HR operating model in general needs to evolve to help address issues like the impact of absence.

A fit-for-the-future operating model should give HR the insight they need to develop proactive absence strategies and empower managers to effectively support their teams. This requires a systemic approach to ER, which we have coined Employee Relations as a Service (ERaaS). ERaaS gives HR teams the ability to take a data-driven approach to absence management by:

• Detecting cultural issues linked to rising sickness
• Building evidence-based wellbeing strategies
• Targeting manager training to close capability gaps.

This deeper level of insight enables resources to be put where they are needed to support an agile and thriving workforce, helping boost motivation and minimise casual absence.

Technology and people-first guidance

ERaaS gives managers and HR teams a more structured, consistent and resilient way to manage absence cases effectively, without piling extra pressure onto internal teams. Technology and automation plays a critical role by prompting managers to take the appropriate action at the right time, such as:

• Welcome‑back conversations
• Early wellbeing check-ins
• Escalating of complex cases for expert support
• Discussing reasonable adjustments.

These prompts help reduce recurring short‑term cases and create space for honest, supportive conversations that help employees feel ready to return to work. Alongside this, leaders also need to understand the support available so they can signpost employees to wellbeing resources, such as EAP support or health benefits, to reduce prolonged sickness and to reinforce a culture of care.

Research shows that HR leaders have identified manager capability gaps which will be impacting sickness rates, so now it is vital to focus on building manager capability through clear training and equip managers with systems that support them in making confident, consistent decisions part of everyday operations.

Reduce absence rates by up to 10%

When organisations empower managers and strengthen their HR analytics capabilities, the impact on absence rates and costs can be significant.

Starbucks UK achieved a 10% reduction in absence within 12 months, returning 15,000 hours to frontline services, using our ERaaS operating model, which has our empower® technology at the heart.

By empowering managers to self‑serve routine people matters, backed by an HR Advice Line, the internal HR team gained valuable capacity to focus on strategic priorities, and empower® insights helped identify patterns and direct support where it could make the biggest difference.

Empowering our managers with guided journeys has been a huge win for us. It’s really boosted managers leadership, helped us cut absence rates by an incredible 10% in just one year, and freed up our HRBPs and district managers to focus on strategic priorities. What’s been especially impressive is the seamless integration and cultural alignment of the external advisers. – Senior HR Business Partner, Starbucks UK

This creates a scalable ER operating model for HR that lowers absence and costs while improving the employee experience overall.

Practical steps: Preparing for SSP reform

To fully benefit from a more proactive, data‑driven absence management strategy, and to ensure managers are ready for the new SSP rules, organisations should lay the groundwork now. Key actions include:

• Reviewing absence and SSP policies
• Updating employment contracts to reflect entitlement changes
• Educating managers to manage absence cases confidently
• Understanding your workforce profile, including zero‑hours, flexible working, SSP and leave accuracy.

During busy periods, our HR consultancy support can identify gaps in policies, processes and data to help organisations prepare.

The Employment Rights Act is here

Investing in proactive absence management now is a strategic opportunity to boost productivity, engagement and culture, and putting the right foundations in place early will pay off later.

Explore award-winning solutions that provide the consistency, HR insight and the people support needed to thrive under under the new ERA.

Watch this short video to discover the benefits of empower® and how it helps organisations reduce absence rates.

The short version

• The rules have changed: SSP is now payable from day one of sickness absence, and the removal of the Lower Earnings Limit means more employees are eligible.
• Absence is becoming more expensive: Short-term absences that previously attracted no SSP cost may now have a direct financial impact, making effective absence management more important than ever.
• Data should drive decisions: Tracking absence trends and identifying root causes helps HR target interventions where they’ll have the biggest impact.
• Managers need the right support: Technology, clear processes and expert guidance enable managers to handle absence cases consistently and confidently.
• A proactive approach delivers better outcomes: Combining people expertise with technology through an Employee Relations as a Service (ERaaS) model helps reduce absence, improve employee wellbeing and free HR to focus on strategic priorities.
• Now is the time to act: Organisations that strengthen their absence management approach today will be better placed to manage costs, support their people and adapt to ongoing employment law changes.