- Up to 9.6 million UK workers could benefit from expanded sick pay rules.
- Payments will begin from day one, ending the three-day waiting period.
- Businesses warn rising labour costs could lead to job cuts and price hikes.
Millions of workers across the UK are set to see a shift in how sick pay works, with changes that could reshape both household finances and workplace expectations.
Under new rules coming into force on April 6, statutory sick pay will begin from the first day of illness rather than after three unpaid days. Analysis by the Trades Union Congress suggests around 8.4 million workers who rely on the minimum statutory payment will benefit from this change.
At the same time, eligibility is widening. Around 1.2 million workers previously excluded because they earned below £125 a week will now qualify for sick pay. This could have a noticeable impact on part-time workers and those in lower-paid roles, particularly in sectors such as retail, hospitality and care.
The reforms form part of the broader Employment Rights Act 2025, which also introduces measures around parental leave, sexual harassment protections and union recognition.
For many, the change may ease a long-standing dilemma: whether to stay off work and lose income, or continue working while unwell. The TUC has argued that removing the waiting period could reduce financial pressure and limit the spread of illness, reportedly stating this would support both workers and public health.
Who gains, and why it matters
The expansion is expected to disproportionately benefit women, younger and older workers, and those with disabilities, groups that are more likely to be in lower-paid or insecure roles.
Support for the policy appears to cut across political lines. According to TUC-backed polling, around 76 per cent of respondents favour sick pay from day one.
Labour market analysts have long pointed out that the UK’s statutory sick pay system is less generous than many European counterparts, particularly when it comes to eligibility and the level of support. These changes could be seen as a step towards narrowing that gap, though the overall payment level remains modest.
There is also a wider economic argument being made. Supporters suggest that better sick pay could reduce presenteeism, where employees work while ill, potentially improving productivity over time.
Businesses warn of mounting costs
Not everyone is convinced the shift will be smooth.
Business groups say the timing is difficult, with companies already dealing with rising wage bills, higher payroll taxes and increased energy costs. Some argue that the added burden of earlier sick pay could stretch finances further, particularly for smaller firms.
Neil Carberry, chief executive of the Recruitment and Employment Confederation, reportedly said businesses are “at a tipping point”, warning that additional costs may force employers to cut staff or raise prices.
He also raised concerns about the potential for misuse, suggesting that clearer guidance will be needed to prevent abuse of the system.
The debate now appears to centre on balance. While the policy aims to strengthen worker protections and financial resilience, questions remain over how businesses will absorb the added costs without wider economic consequences.
