Last reviewed 7 January 2022

Coming into force on 14 January 2022, the Statutory Sick Pay (Coronavirus) (Funding of Employers’ Liabilities) Regulations 2022 (SI 2022/5) provide for certain small and medium-sized employers to reclaim some or all of their Statutory Sick Pay (SSP) costs from HM Revenue & Customs (HMRC).

This is provided that the employee’s period of incapacity for work is related to coronavirus.

The full text of the regulations, which can be found at, explains that an eligible employer is one who, on 30 November 2021, had fewer than 250 employees enrolled in all PAYE schemes operated by the employer and, on 31 December 2019, was “not already in difficulty”.

The regulations state that such an employer may make a claim in respect of an employee’s period of incapacity for work related to coronavirus where any day of incapacity for work in that period falls on or after 21 December 2021.

They make further provision about which SSP costs an employer is entitled to reclaim and limits the amount which can be claimed per employee (£192.70) and in total (£192.70 multiplied by the number of employees enrolled in PAYE schemes of the eligible employer on 30 November 2021).

The situation where an employer is not entitled to claim by reason of exceeding limits on receipt of State aid under the Temporary Framework for State aid measures to support the economy during the current Covid-19 outbreak, set by the European Commission, is also covered, as is that where there is an entitlement to a government grant where an employee is furloughed from the employment for reasons related to Covid-19.