UK Statutory Sick Pay and Maternity Pay Guide for Employers (2026/27)

In the UK, Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP) are legal obligations designed to support employees when they are unwell or starting a family. While employers must fund and manage both types of leave, you can only reclaim maternity payments directly from HM Revenue and Customs (HMRC), whereas sick pay cannot be recovered. For the 2026/27 tax year, SSP is capped at £123.25 weekly for up to 28 weeks, while SMP is payable for up to 39 weeks at a rate of 90% of earnings initially, followed by a flat rate of £194.32 or 90% of earnings.

Key Takeaways

• SSP Rates for 2026/27: Paid at the lower of £123.25 weekly or 80% of average weekly earnings for up to 28 weeks.
• SMP Rates for 2026/27: Paid at 90% of average earnings for the first 6 weeks, then the lower of £194.32 or 90% of average earnings for 33 weeks.
• SSP Reclaims: Strictly non-reclaimable; SSP is entirely a direct operational cost for the employer.
• SMP Reclaims: Fully or partially reclaimable through your payroll system by sending an Employer Payment Summary (EPS).
• Small Employers' Relief: Businesses with history of £45k or less Class 1 National Insurance can reclaim 109% of statutory parental payments.

How do statutory sick pay and statutory maternity pay work, and can I reclaim them from HMRC?

Both processes operate through payroll, but only maternity payments can be reclaimed from HMRC; you must absorb all sick pay costs. To compare their main functional differences, refer to the rates and rules applicable for the 2026/27 tax year below.

How does Statutory Sick Pay (SSP) work from April 2026?

From April 2026, SSP becomes an immediate day-one entitlement for all UK staff, removing previous statutory barriers to access. Under the changes brought in by the Employment Rights Act 2025, employees do not have to serve waiting days or meet minimum earnings limits.

1. Day-One Eligibility: Under the Employment Rights Act 2025, employees qualify as long as they are paid through PAYE, with no minimum wage threshold criteria.
2. No Waiting Period: The historic 3-day unpaid waiting period is completely removed; workers are eligible for SSP beginning on their first sick day.
3. Calculate Daily Rate: Calculate payment using the number of days they normally work. For a standard five-day week in 2026/27, divide the £123.25 cap by five to yield a daily rate of £24.65.
4. Apply Earnings Cap: For lower-paid employees, pay the lower of the flat £123.25 rate or 80% of their actual average weekly earnings.

How does Statutory Maternity Pay (SMP) work in the UK?

SMP acts as a secure social safety net for expectant mothers, stepping down in value over its 39-week duration. The program balances early earnings protection with a standardized statutory payment level for the remaining period of leave.

1. Confirm Eligibility: Check that the employee has 26 weeks of continuous service by the 15th week before her expected week of childbirth.
2. Verify Earnings: Ensure her average weekly earnings meet the defined Lower Earnings Limit threshold.
3. Receive Notification: Request a minimum of 28 days' written notice from the worker stating when she desires her SMP to commence.
4. Apply First Phase (Weeks 1 to 6): Pay 90% of her calculated average weekly earnings with no upper financial cap.
5. Apply Second Phase (Weeks 7 to 39): Pay either £194.32 weekly or 90% of her average earnings, applying whichever amount is lower.

How to reclaim statutory payments: Small Employers' Relief explained

While you cannot reclaim sick pay, UK businesses can recover statutory parental pay through regular payroll filings. The specific amount you can reclaim depends on your total annual National Insurance contributions, offering a boost to small businesses.

For the 2026/27 tax year, small employers recover 100% of the statutory parental payments plus an additional 9% compensation top-up. You submit these claims to HMRC through payroll software via an Employer Payment Summary.

What if you can't afford to pay SMP upfront?

If funding the SMP payments upfront strains your business cash flow, HMRC provides an official process to secure advance funding. This advance prevents employers from running into deficit while managing parent payments.

1. Access your HMRC online account up to 4 weeks prior to the date the first maternity payment is due.
2. Fill out the statutory pay advance application form online with exact payment details.
3. Wait for HMRC to issue the approved funds to your designated corporate bank account before you run your monthly payroll.

How do you request a direct refund if you cannot offset the full amount?

There are cases where your monthly recovery totals exceed your overall Pay As You Earn (PAYE) and National Insurance liabilities. If you cannot offset the entire amount by the end of the tax year, you can request a cash refund directly from HMRC. Please note that this direct refund application can only be submitted once the new tax year has physically started.

To request this direct payment, employers must write a physical letter to the tax authority. Postal requests of this nature must be addressed to the National Insurance Contributions and Employers Office, HMRC, BX9 1BX.