If you work through an umbrella company like SmartWork, there’s a good chance you’ve wondered what happens when you’re too unwell to work. Do you get paid? For how long? And how does it all work in practice?

The Statutory Sick Pay (SSP) changes in April 2026 answer a lot of those questions, and for most contractors and temporary workers, the news is firmly in your favour. Here’s everything you need to know about what’s changing, why it matters, and what (if anything) you need to do.

What Is SSP and Does It Apply to You?

First, a quick bit of context. Statutory Sick Pay is a vital safety net for most employees, including umbrella company contractors. Because when you work through a compliant umbrella company, you are an employee of that umbrella, which means you’re entitled to the same statutory employment rights as anyone else on PAYE. SSP is one of those rights.

That said, a surprising number of umbrella workers don’t realise they’re entitled to it at all. So if that includes you, now is a great time to get up to speed, especially with these changes just around the corner.

What’s Actually Changing from 6 April 2026?

The Employment Rights Act 2025, which received Royal Assent in December, introduces significant reforms to Statutory Sick Pay from 6th April 2026. These represent the most substantial changes to SSP since the system was revised in 1985. There are three main things changing:

1. SSP kicks in from day one

Currently, employees must serve three “waiting days” before SSP becomes payable. From 6 April 2026, SSP will instead be payable from the first day of sickness absence. This means that even short absences of one or two days will trigger statutory sick pay.

This is a meaningful shift. Previously, if you were sick for three days or fewer, you received nothing. From April, that’s gone.

2. The earnings threshold is being scrapped

Currently, employees must earn at least £125 per week to qualify for SSP. From April, all employees will be eligible regardless of their earnings level, extending coverage to an estimated 1.3 million additional workers.

For contractors on short-term or lower-paid assignments, this is particularly relevant. If you previously earned below that threshold during a quiet patch, you may have had no SSP entitlement at all. That changes entirely.

3. How SSP is calculated is changing

Rather than the flat rate alone, employers will pay whichever is lower: 80% of the employee’s average weekly earnings, or the uprated flat rate of £123.25. Average weekly earnings are calculated over the relevant eight-week period prior to absence.

In practical terms, most umbrella contractors will receive 80% of what they’ve typically been earning, which, for many, will be close to or equal to the flat rate. The key point is that the calculation is now proportional, which is fairer for those on variable incomes.

Statutory Sick Pay Changes in Practice

A few things are worth keeping in mind when it comes to how the April 2026 SSP changes actually play out day-to-day for umbrella contractors:

How to claim SSP when you’re sick

As a contractor, to claim SSP if you are sick, you will need to inform your umbrella company in line with their procedures. It’s important to check exactly how this is required, for example, it might be via email, a telephone call or by calling a dedicated point of contact. You might also check if you need to notify your agency and end-client.

At SmartWork, we’ll always make sure you know exactly what to do, but it’s worth familiarising yourself with our reporting process before you need to use it. A sick note is not required for the first seven days, so for shorter absences, a straightforward notification is all that’s needed.

Know your rights and don’t be afraid to use them

Some umbrella companies may try to avoid paying SSP. If an umbrella company refuses to pay you SSP, don’t accept this at face value. Ask the umbrella to explain the decision in writing and keep their answer somewhere safe.

At SmartWork, we are committed to paying SSP in full where it’s owed; it’s not optional, and it never has been. But if you’re ever in doubt about what you’re entitled to, don’t hesitate to ask us directly.

The 28-week limit still applies

SSP can be paid for up to 28 weeks in total. In some cases, umbrella companies may not wish to continue employment for workers out of assignment for long periods, but this should not affect your right to SSP for any sickness that started while you were employed.

Transitional protection if you’re already off sick

Those already receiving SSP before 6th April 2026 will be transitionally protected to prevent any reduction in their payments. They will continue to receive the uprated flat rate of £123.25 until they return to work, exhaust their 28-week entitlement, or their contract ends.

A Word on the Wider Changes Happening in April

The SSP changes in April 2026 don’t exist in isolation. April also brings significant changes to how umbrella companies themselves are regulated, and this is worth knowing about, too.

From April 2026, new rules mean that if an umbrella company manipulates your tax, the liability for any unpaid tax, in most cases, should fall on the recruitment agency or sometimes the end-client, not you. These are known as “Joint and Several Liability” rules, and they represent a major step forward in protecting contractors from the kind of unscrupulous umbrella practices that have unfortunately been a problem in parts of the market.

Alongside these changes, the new Fair Work Agency will launch in April 2026. This body will oversee SSP compliance and enforce holiday pay and National Minimum Wage rules, indicating a stronger focus on employer accountability.

All of these point in the same direction: the UK government is raising standards across the board for temporary and flexible workers, and compliant umbrella companies like SmartWork are well-placed to navigate these changes smoothly.

What Should You Do Now?

Honestly? Not much. Other than making sure you’re aware of your rights and know who to contact if you’re ever unwell. Here’s a quick checklist:

• Find out how to report sickness to your umbrella company before you need to. Don’t wait until you’re unwell to figure out the process.
• Keep a record of any SSP-related communications, just in case you ever need to reference them.
• Check your average weekly earnings if you’re on a variable-hours contract, since SSP from April is calculated on an eight-week average; it’s worth knowing what that number looks like for you.
• If you change umbrella companies around this time, make sure you understand how your SSP entitlement transfers (or doesn’t) between assignments.

The Bottom Line

The April 2026 SSP changes are genuinely good news for contractors and temporary workers. Sick pay from day one, no earnings threshold, and a fairer calculation method all combine to make the safety net stronger — especially for those on shorter contracts or variable hours.

At SmartWork, we’ll always ensure our workers receive every penny they’re entitled to, and we’ll be updating our processes ahead of 6 April to make the transition as smooth as possible. If you have any questions about how the SSP changes in April 2026 affect you specifically, get in touch — we’re happy to help.

This article is intended as general guidance only. For advice specific to your situation, please speak to SmartWork directly or consult an independent employment adviser.