Statutory Sick Pay is changing from April 2026.
The weekly rate will rise to £123.25, the lower earnings threshold will be removed, and payments will begin on the first full day of sickness absence rather than the fourth.
At first glance, that sounds like progress. But when you compare £123.25 a week to the reality of mortgages, rent and household bills, it becomes clear that sick pay was never designed to replace a full income.
What £123.25 a Week Actually Means
Statutory Sick Pay (SSP) is paid by employers if an employee cannot work due to illness.
From 6 April 2026, SSP is set at £123.25 a week or 80% of average weekly earnings, whichever is lower, and it can be paid for up to 28 weeks.
The reforms also remove the Lower Earnings Limit, which means more lower-paid workers will be eligible to receive it.
Even with those changes, the amount remains relatively modest – £123.25 per week works out at about £534 a month.
According to the Office for National Statistics, the average UK household spends £623.30 per week, roughly £2,700 per month, on housing, food, transport and other essentials.
So while SSP provides a basic level of support, many households would still face a significant shortfall if their usual income were to stop for several months.
The Three Gaps SSP Leaves
For many people, the issue isn’t that sick pay exists. It’s the limits attached to it.
First, the income gap.
SSP pays far less than most people’s usual salary. Even at the full weekly rate, it may cover only a small portion of regular household expenses.
Second, the time limit.
SSP only lasts 28 weeks. If someone cannot return to work after that point, they may need to rely on savings or other support.
Third, who it applies to.
SSP is available to eligible employees on payroll. Self-employed people generally cannot claim SSP, and some contractors may not qualify depending on their employment status.
These gaps are often where people begin to think about other ways to protect their income.
What Income Protection Actually Pays
Income protection policies are designed to replace part of a person’s earnings if illness or injury prevents them from working.
A typical policy may cover around 50–70% of pre-tax income, paid monthly after a chosen waiting period. Payments can continue until the person returns to work, reaches retirement age, or the policy term ends.
Where premiums have been paid personally from taxed income, the benefit payments are generally tax-free.
In practical terms, the aim is simple: to help maintain normal household finances while someone recovers.
Final Thoughts
Statutory Sick Pay provides a safety net, but it was never intended to support a household on its own for long periods.
Income protection exists to help replace part of an income if illness stops someone from working.
If you’d like to discuss how income protection works, or review the protection you already have in place, call 020 8366 4400 or email enquiries@cedarhfs.co.uk to arrange a conversation.