What changing SSP landscape means for your organisation

Some of the biggest changes in a generation to sick pay are about to affect the finances, operations and reputations of every UK company. Acting now might help reduce any costs.

The changes to Statutory Sick Pay (SSP), particularly the shift to day one sick pay, marks one of the most significant developments in UK absence management strategies in a generation. For organisations that act now, this is an opportunity to build stronger, more resilient workforces. For those that wait, the cost - financial, operational and reputational - will be harder to manage.

The SSP changes, alongside the broader direction set by the Keep Britain Working Review, reinforce a clear and continued policy focus on workforce participation and employer accountability. These developments are interconnected and together make the case for a more proactive, structured approach to absence and wellbeing, stronger than ever.

A new cost reality for employers

Day one SSP will materially alter the financial dynamics of absence management. By removing the previous three-day waiting period, organisations will face an immediate increase in direct payroll costs, particularly in sectors with higher levels of short-term absence.

However, the impact goes beyond simply paying employees earlier. Businesses must also account for:

Increased administrative and reporting requirements, as the need for absence tracking becomes immediate
Greater payroll processing demands, ensuring payments are accurate from the first day
Potential shifts in absence behaviour, which may influence overall absence rates

These changes inevitably introduce additional ongoing costs and responsibilities, many of which are not yet fully quantified or embedded in existing operating models.

The hidden costs: Beyond payroll

While the direct cost of SSP is clear, the indirect business costs are often significantly higher. These include:

Lost productivity and workflow disruption
Increased pressure on people managers and team members
The need for temporary cover or overtime
Reduced employee engagement where absence is not effectively managed

For organisations with seasonal or shift-based workforces, these changes present additional complexities. In environments where employees have flexible or variable schedules, there can be a degree of informality in how absence is managed as employees may swap shifts, adjust working days, or make up hours rather than formally recording sickness absence.

While this can support operational continuity in the short term, day one SSP and increased reporting expectations make it far more important to accurately capture and classify absence from the outset.

Without clear processes and consistent oversight, businesses risk underreporting true absence levels, compromising payroll accuracy and weakening the integrity of absence data. This in turn limits an organisation's ability to identify trends, manage costs effectively and demonstrate compliance.

This highlights the need for more robust systems, clearer accountability and improved manager capability. This is an area we are seeing growing focus on across our client portfolio: WTW's 2026 Absence Management Survey found that 35% of employers are already prioritising absence trend analysis, a figure we expect to rise as organisations continue to embed these changes.

With policy developments increasingly emphasising workforce participation and employee obligations, organisations may also face greater scrutiny on how absence is managed and supported, further elevating the importance of a robust and transparent approach.

Why prevention and culture must be prioritised

In this evolving landscape, organisations must shift from a reactive approach to absence management, towards one that prioritises prevention, wellbeing and culture.

WTW's Absence Management Survey highlights this shift, with 57% of companies looking to better integrate absence management with their wider HR strategy. This is a clear signal that absence is no longer viewed in isolation, but as part of a broader people and business agenda.

This need is further reinforced by increasingly diverse and multi-generational workforces, alongside an ageing employee population, where health needs, expectations and workplace priorities can vary significantly. As a result, organisations must adopt more flexible, inclusive and tailored approaches to wellbeing and absence management that reflect these differing employee needs.

Investing in employee health, early intervention and supportive workplace environments can:

Reduce overall absence levels
Improve employee engagement and retention
Mitigate long-term cost exposure
Strengthen organisational resilience

Crucially, as external expectations increase, organisations will need to demonstrate that they are actively taking accountability for managing absence and supporting workforce health. This means not just responding when issues arise, but embedding prevention and wellbeing into the core of their organisational culture.

The critical role of leadership and people managers

Senior stakeholder commitment will be fundamental to driving meaningful change. Without visible leadership investment, absence strategies often fail to gain traction, despite the changing environment where policy and regulatory direction is encouraging stronger employer accountability.

Equally important is the role of people managers. They are on the front line of absence management and play a critical role in:

Supporting employees from the first day of absence
Identifying early warning signs and intervening appropriately
Creating inclusive and supportive team environments
Applying policies consistently and fairly

This is a consistent theme across our research. WTW's 2026 Absence Management Survey found that 60% of companies are planning to focus on manager effectiveness over the next two years, recognising that equipping people managers with the right tools and education is one of the highest-return investments an organisation can make.

WTW's 2026 Absence Management Survey illustrated 46% of companies are focusing on enhancing wellbeing and prevention and this is expected to continue to rise.

We partner with organisations to navigate these changes and build effective, future-focused wellbeing and absence strategies. Our approach is designed to minimise risk, control costs and demonstrate measurable return on investment, while supporting organisations to meet increasing expectations around accountability and employee support.

Turning change into opportunity

The changes to SSP present real challenges - but they also represent a significant turning point. Organisations that act now, with a clear strategy and the right support, will do more than manage rising costs.

They will build the structures, cultures and capabilities needed to respond confidently to future policy changes.

Organisations that thrive will be those that see this not as a compliance burden, but as an opportunity to invest in their people, place wellbeing at the centre of their culture and unlock long-term value. A healthier, more engaged and more resilient workforce is good for employees, good for business and increasingly, good for regulatory standing.