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Sickness absence is at its highest rate in 15 years with 150 million days lost,costing UK employers over £85 billion, annually. On average, each day ofsickness costs employers roughly £120 in lost profit, while long-term absencecan cost over £20,000 per employee annually, impacting productivity and increasing turnover costs.
The Chartered Institute for Personnel and Development reported in September 2025 that the average number of sick days per annum in the UK had risen to 9.4days, reflecting a trend of rising long-term absences due to mental health and musculoskeletal issues.
Increased economic inactivity due to long-term sickness is a major driver, withover 3 million people out of work due to health issues.
Statutory sick pay is currently £118.75 per week, rising to £123.25 from April2026, and is payable for up to 28 weeks. Currently the first 3 days of absence inany linked period of incapacity are classed as unpaid “waiting days”. From April 2026, these will be abolished and statutory sick pay will be payable from day oneof absence to all employees. The current requirement for employees to be paidthe lower earnings limit of £125 per week to qualify for SSP will also beabolished which means that all employees will be entitled to the statutory rateor 80% of their earnings, whichever is lower.
National Statistics predict that that will cost UK employers on average an additional £38 per employee per annum, which may not seem like much, but ontop of an increase in the National Minimum Wage rates in April, it’s yet another additional cost to be budgeted for. The National Living Wage (age 21 and over)will increase by 4.1% to £12.71 per hour. The rate for 18-20 year olds will rise by8.5% to £10.85 and the rate for 16 and 17 year olds will rise by 6% to £8.00 perhour.
Many employers are increasing their focus on early intervention and mentalhealth support whilst employees are still at work to mitigate the high costs ofabsence. Studies show that, once an employee has gone off sick, it becomes moredifficult to manage their absence and the longer they are off, the less likely theyare to return.
Initiatives include training internal mental health first aiders, providing accessto an employee assistance programme, gym membership and better workplacefacilities where employees can take adequate rest breaks. It’s important foremployers to encourage healthy working habits such as open communication,regular breaks, movement, spotting the signs of stress and taking early action tocombat them.
What do employers need to do now?
Happy and healthy employees are more productive and engaged at work and soit also makes commercial sense to look after them. Get in touch if you want todiscuss how to do that in your business.
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