Rising Absenteeism and New SSP Rules Pose Challenges for Local Businesses
25 Apr 2025
Published in: Member News
Absenteeism is rising, driven by mental health issues and upcoming SSP changes. From 2026, sick pay starts on day one, increasing short-term absences. Businesses must adopt clear policies, train managers, and use tools like HR Chest to manage absence effectively.
Absenteeism continues to be a pressing concern for businesses across the UK, with recent data highlighting the significant impact this issue is having on productivity and operational efficiency. According to the latest figures from the Office for National Statistics (ONS), UK businesses lost an estimated 185.6 million working days to sickness absence in 2022, up notably from 149.8 million in 2021. This rise in absences creates considerable strain for businesses of all sizes, especially SMEs, where every employee's contribution is crucial.
Mental health remains a significant factor driving this upward trend. Recent NHS Digital data indicates that anxiety, stress, depression, and other psychiatric illnesses accounted for over a quarter (26.6%) of all recorded absences in June 2024 alone. This statistic reflects not just a wellbeing challenge but also a substantial cost to businesses in terms of productivity, morale, and financial performance.
Adding to this challenge, UK employers now face substantial regulatory changes regarding Statutory Sick Pay (SSP). Currently, employees must wait three consecutive days of illness, often called "waiting days", before receiving SSP. However, from April 2026, this waiting period will be abolished. Employees will become entitled to SSP from the first day of their sickness absence, removing the financial disincentive previously associated with short, term absences. This policy change, while beneficial for employee wellbeing, is likely to result in a notable increase in short, term absences, further heightening pressure on businesses already grappling with absenteeism.
Given these upcoming changes, local businesses must ensure they have robust absence management strategies in place. Clear and consistently applied absence policies will be essential in managing this anticipated increase. Employees who understand clearly defined expectations regarding absence reporting and documentation are far less likely to take advantage of the new rules.
Training line managers to recognise and sensitively address early signs of stress or illness among their teams will also become even more important. Managers who feel confident and well, supported in handling absence discussions can more effectively minimise prolonged absences and help employees return to work safely and quickly.
Monitoring absence accurately and efficiently will become critical as the volume and potential complexity of absence data increases. For SMEs, managing detailed records and documentation can be particularly burdensome without suitable tools. Platforms such as HR Chest offer practical solutions by providing comprehensive absence management resources specifically tailored for smaller businesses.
HR Chest’s dedicated absence screen simplifies the entire process for employers. It allows businesses to log each employee’s absence, securely store associated documentation, such as self, certification forms, GP notes, and medical records, directly within the employee’s file, and record detailed reasons and notes for each absence. These comprehensive records facilitate easy identification of patterns or recurring issues, enabling businesses to respond swiftly and appropriately to potential absenteeism concerns.
Ultimately, effectively managing absence isn't simply about controlling costs; it's about creating workplaces where employees feel genuinely supported. Businesses that successfully address absenteeism with clarity, compassion, and consistency will not only mitigate the risks associated with rising absence rates but will foster a more productive, motivated, and committed workforce.
As businesses prepare for significant SSP reforms, proactive absence management has never been more essential. Utilising supportive platforms like HR Chest to simplify monitoring and record, keeping will help local businesses thrive, even as they face new challenges ahead.
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