SSP Reform Is Here: What Employers in High-Impact Industries Need to Know

The government has confirmed significant reforms to Statutory Sick Pay (SSP) as part of the Employee Rights Bill (ERB) implementation roadmap. These changes mark a shift towards greater financial protection for workers — and greater responsibility for employers.

At TCW Payroll Bureau & Training Services, we’re here to break it down simply and help you take action before the costs catch you off guard.

✅ What’s Changing?

Two key changes have now been confirmed:

• No more lower earnings limit – All workers, regardless of income or hours, will now qualify for SSP.

• No more waiting period – SSP must be paid from day one of sickness, not day four.

These changes aim to ensure that illness doesn’t push workers into financial hardship. But for many employers, this means a bigger payroll bill and more admin.

🚨 Who Will Be Hit Hardest?

Certain industries, especially those with part-time, low-paid, or temporary workforces, are facing a steeper climb.

1. Hospitality

• Often employs zero-hour and casual staff

• Previously, many workers didn’t qualify for SSP but now they will

• Short-term absences will cost more and need tighter management

2. Retail

• High staff turnover and part-time roles

• Budgeting for SSP will become more complex, especially in multi-site businesses

3. Social Care

• Part-time carers and agency staff now fully eligible

• Already facing funding pressures — SSP costs may hit service quality

4. Logistics & Warehousing

• Shift work, flexible hours, and temporary contracts dominate

• Reliable absence processes are critical to avoid fulfilment disruptions

5. Cleaning & Facilities Management

• Mobile and often subcontracted workforce

• You’ll need to ensure every site and contract is SSP-compliant

6. Agriculture & Seasonal Work

• Temporary harvest workers now covered from day one

• Financial planning and cover arrangements will need to change

🛠️ What Should Employers Do Now?

At TCW, we recommend the following steps:

1. Review your workforce makeup

• Identify staff who were previously below the lower earnings limit

2. Update absence policies and employee guidance

• Make sure everyone understands their entitlements and responsibilities

3. Check your payroll system

• Ensure SSP is triggered correctly from day one of absence

4. Train your line managers

• Clear, fair, and consistent absence management is now more important than ever

5. Plan and budget for the changes

• For seasonal and shift-based industries, SSP may become a major new cost line

💬 How TCW Can Help

We’re already supporting clients to prepare for these changes with:

✅ Policy reviews

✅ Payroll system audits

✅ Manager training sessions

✅ Sector-specific strategy guidance

The SSP reform isn’t just a policy shift, it’s a chance to build a fairer, more supportive workplace. But it needs planning.

📞 Get in touch today to book a consultation or policy check-up with TCW.

TCW Accountancy & Training Services

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