From 6 April 2026, significant changes to Statutory Sick Pay (SSP) will affect how employers support employees who are off sick. These reforms represent the biggest overhaul of sick pay rules in years, and will impact production companies, post-production houses, broadcasters, and any screen industry business that employs staff. But before we get into the details, it is important to understand who is covered by Statutory Sick Pay. SSP is a legal entitlement only for employees. This means people who work for you under a contract of employment, for whom you deduct tax and National Insurance through the payroll.
Self-employed freelancers working for you on a contract for services
Workers engaged through umbrella companies or loan-out companies
People you engage via agencies (unless they're your direct employees)
Workers (as distinct from employees) - although they may have other sick pay rights included in their contracts.
Remember that “Worker” is a specific UK legal category that sits between employee and self-employed. Workers have some employment rights (e.g. holiday pay & minimum wage) but not others (e.g. unfair dismissal protection or, as here, SSP). ‘Workers’ might include agency temps, zero-hours contractors, or casual staff who aren't genuinely self-employed but don't have full employee status either. New regulations to help clarify this confusion are expected soon.
We know that in the screen industries, employment status can be complicated. Many crew members are genuinely self-employed, while others may work on short-term employee contracts. If you're unsure about someone's status, do seek advice, not just for sick pay, but for all your employment obligations. The new Fair Work Agency has broad enforcement powers.
For the rest of this article, when we say 'employee', we mean someone with full employee status who is entitled to SSP.
Just to be clear, SSP is not the same as Company (or Contractual) Sick Pay (CSP). CSP is the optional, employer-provided benefit offering better terms than the legal minimum SSP. It typically provides full or partial pay for a set period, and is set out in employment contracts or staff handbooks. Businesses usually "offset" CSP against SSP, meaning employees do not receive both at the same time.
Currently, employees must earn at least £125 per week before tax to qualify for SSP. But from April 2026, this ‘Lower Earnings Limit’ disappears altogether meaning that all employees will be entitled to sick pay, regardless of how little they earn. There’s a minimum SSP for those who would have fallen below the old £125 threshold, which will be calculated as the lower of either 80% of their normal weekly earnings, or the standard flat rate (currently £116.75 per week and not due to be increased in April).
Under current rules, an employee needs to have been off sick for at least 4 days in a row and let their employer know, and they only get SSP from that fourth day of sickness. The first three days are unpaid (unless there’s a more generous company sick pay scheme in place). But from April 2026, employees will be entitled to SSP from their first full day of sickness absence. If someone is off sick on Monday, they'll be entitled to SSP for Monday onwards - no more three-day gap.
The Government claims that these changes will help all employees to take the time off they need to recover by providing better financial security, whilst also reducing the spread of infectious diseases. This could reduce overall absence rates and protect productivity during shoots or tight post-production deadlines.
It is estimated that these changes will bring up to 1.3 million low-paid workers into SSP eligibility across all sectors.
That said, in screen industries, where short contracts and entry-level positions are common, the impact could be significant. Businesses who do not offer ‘day one’ CSP might see an increase in short term absences as a result of SSP becoming available from day one of sickness absence.
Part-time or low-hours staff like production runners, junior assistants, or part-time office staff earning under £125 per week will now qualify for SSP. Previously, they received nothing. Those on short-term employment contracts like someone on a short shoot or post-production contract that falls ill, will now get sick pay from day one, rather than having to work through illness or take unpaid time off. Those paid weekly or casually such as variable-hours employees who might have some weeks below £125 will now always qualify when they're off sick.
What does this look like in practice?
For example...
A production runner earning £100 per week
Current position - No SSP entitlement (below the £125 threshold).
From April 2026 - Entitled to SSP at 80% of £100 = £80 per week and paid from day one of sickness absence.
A part-time assistant earning £200 per week
Current position - Entitled to SSP (but only from day four of sickness) at £116.75 per week (the standard flat rate).
From April 2026 - Still receives £116.75 per week (because 80% of £200 = £160, which is higher than the flat rate, so the lower amount applies) but now paid from day one, not day four.
A production coordinator earning £500 per week
Current position- Entitled to SSP from day 4 at current SSP rate: £116.75 per week.
From April 2026 - Still receives £116.75 per week (80% of £500 = £400, which exceeds the flat rate, so the flat rate applies) but now paid from day one.
Thinking now about whether someone is employed or genuinely self employed is key. Some proactive absence management, implementing proper return to work check-ins or meetings with a manager may also help.
Communicate with employees letting them know about the changes, particularly anyone who currently earns less than £125 per week. They need to understand they'll now be entitled to sick pay, and that they should feel able to take time off when genuinely unwell rather than struggling.
Budget for increased costs and factor the additional sick pay costs into financial planning from April 2026 - the actual cost will depend on a business’s particular workforce and absence patterns.
Keep proper records of sickness absence dates, SSP payments made and how SSP for lower earners was calculated.
Liaise with accountants or payroll providers to discuss any procedural changes that may be required as soon as possible. Payroll software (or payroll providers) will need to remove the £125 per week earnings check, calculate SSP from day one of sickness absence, not day four and apply the 80% calculation for employees earning below the old threshold, capped at the flat rate.
Businesses who do offer enhanced sick pay or CSP should review their employment contract terms and any policy/handbook documentation updating to make sure they clearly state how this relates to or dovetails with the statutory minimum SSP.
(There used to be rebate schemes that helped small businesses claim back SSP costs but they’ve been discontinued as too complex and underused. The focus is now on the productivity benefits of healthier workplaces.)
SSP provides a basic safety net, but it won't replace most people's full wages. Employees who need additional financial support while off sick might be able to claim Universal Credit or other benefits, depending on their circumstances.
Businesses are not required to provide enhanced sick pay beyond the statutory minimum (though some employers choose to do so as a CSP). If considering introducing enhanced sick pay, take professional advice on how to structure it fairly and sustainably.
From April 2026, SSP disputes and enforcement will be handled by a new single enforcement body called the Fair Work Agency (replacing the current fragmented system where different government departments handle different aspects of employment law) and businesses will need clear records if there's ever a query or dispute.
This should make it simpler for both employers and employees to get advice and resolve disputes, though the Agency's full powers and procedures are still being developed.