The SSP Bombshell: Who Is Protected and Who Is Exposed
The SSP reforms land 6 April 2026. NHS and local authority staff are largely protected. Private care, outsourced services, and bank staff face the real cost. An HR Director breaks down who pays.
Emma-Jayne Perez Chies
Executive Career Coach | Founder, Optima Prep Lab
The Two-Tier Reality
The Employment Rights Act's SSP changes don't hit everyone equally. NHS and local authority substantive staff are largely shielded by Agenda for Change and the Green Book, which already provide occupational sick pay from Day One. Their staff were never sitting through three unpaid waiting days. The earnings limit was irrelevant because even the lowest-paid substantive staff earn above the threshold. The SSP rate change barely touches them because occupational pay already exceeds it.
The reforms land hardest on the workforce sitting right next to them in the same care ecosystem.
Who Is Actually Exposed
The gap between protected and exposed workforces runs through the centre of the health and social care system. Here is where the financial impact actually lands.
close Private Care Providers
90% of the independent care workforce lacks occupational sick pay. 62% of care establishments have no enhanced provision whatsoever. Every change hits at full force. For a 500-staff provider, additional liability runs to approximately +£50,000 per year.
close Outsourced NHS Services
Cleaning, catering, portering, security — typically SSP only or minimal occupational cover. Costs come back through contract prices.
close NHS Bank Staff
Predominantly SSP only. A Day-One cost that most Trusts haven't modelled.
close Domiciliary / Home Care Workers
SSP only. Many currently below the current lower earnings limit. From April, 1.3 million workers nationally become eligible for the first time.
check NHS & Local Authority Substantive Staff
Largely shielded by Agenda for Change and the Green Book. Occupational sick pay already exceeds statutory minimums. These reforms change very little for this group.
The Three Changes Landing Simultaneously
From 6 April 2026, three SSP reforms take effect at the same time:
Waiting days abolished. SSP is payable from Day One of absence. The previous three-day waiting period is removed entirely.
Lower earnings limit abolished. All employees now qualify for SSP regardless of earnings. There is no longer a minimum income threshold.
New rate structure. SSP is now the lower of the confirmed weekly flat rate or 80% of average weekly earnings. Low earners receive a proportionate rate rather than nothing.
Why This Matters
These three changes landing together create a compounding effect. Employers who previously had no SSP liability for low-earners now face Day-One obligations for every employee on their books. The financial modelling most providers ran in 2025 assumed these changes would be phased. They were not.
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The Supply Chain Effect
The NHS is protected by Agenda for Change. But it commissions services from providers who are not. When a care provider's SSP costs rise, that cost gets absorbed by the provider, passed back through council-commissioned contract prices, or results in reduced service capacity.
The public purse pays either way. The organisations sitting next to you at the ICS table are carrying the financial exposure that Agenda for Change shields you from.
Board Action Required
NHS and LA employers: Review outsourced contracts and commissioned care provider exposure.
Private care providers: Model SSP cost impact before 6 April.
ICS partnerships: Assess whether contract pricing reflects the new statutory obligations landing on your supply chain.
Related Articles
Related Reading
- April 2026 Employment Law Changes — Overview of all ERA changes taking effect this April.
- Top 3 HR Financial Risks for 2026 — Financial risk quantification for boards and HR directors.
- The Cultural Cost of Fire and Rehire — Related ERA reform and its impact on employer reputation.
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