Here’s a quick overview of the key legislative changes taking effect from 6 April 2026, so you can prepare your payroll and policies in advance.
Statutory Sick Pay (SSP) changes
Two important updates to SSP will apply:
- The lower earnings limit will be removed. All eligible employees will be entitled to SSP, regardless of their income.
- SSP will be paid at the lower of:
- 80% of the employee’s regular weekly earnings, or £123.25 per week.
- The waiting period will be removed, meaning SSP will be payable from the first full day of sickness.
Student Loan updates
- From 6 April 2026, Student Loan Plan 5 will be introduced.
- The updated annual thresholds are:
- Plan 1 — £26,900
- Plan 2 — £29,385
- Plan 4 — £33,795
- Plan 5 — £25,000
- Postgraduate Loan — £21,000
Deduction rates remain:
- Plans 1, 2, 4, and 5: 9% on earnings above the relevant threshold
- Postgraduate Loan: 6% on earnings above the threshold
Day One entitlements from 6 April 2026:
- Paternity Leave will be available from day one of employment.
- Unpaid Parental Leave will also become a day one entitlement.
- If you manage leave policies in Bob, review your eligibility rules to ensure they align with the updated legislation.
For the full list of revised employer rates and thresholds for the 2026/27 tax year, see the official government guidance:
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027