In a recent Acas survey, employers and employees were asked which three changes in the Employment Rights Act 2025 would have the biggest impact in their workplace.

Surprisingly, the new rights on Statutory Sick Pay (SSP) topped the list for both groups, named by 43% of employers and 36% of employees. The reduction in the unfair dismissal qualifying period from two years to six months was the second most significant change (31% of employers and 30% of employees). Employers ranked the new paternity leave day-one rights as the third-largest reform, whereas employees said it was easier access to flexible working arrangements.

The SSP reforms take effect from 6 April 2026, aiming to improve financial security, particularly for part-time employees and those in low-paid jobs. While more employees will qualify for SSP, employers will face increased costs and compliance requirements, particularly for small and medium-sized enterprises.

Before looking at the reforms and what employers can do to prepare for them, let’s consider the current arrangements.

What is the current SSP framework?

An employee must be an “eligible employee” and earn at least the Lower Earnings Limit (LEL), which is currently £125 per week. Even if employees are eligible, SSP is payable only from the fourth consecutive day of sickness, as the first three days are unpaid waiting days.

It is estimated that around 1.3 million employees receive no SSP at all, and many lose pay for only short periods when unwell. Some face the choice of working while ill or losing income. This can spread illness in the workplace and reduce productivity.

What is changing from 6 April 2026?

Approximately 25% of employees only receive SSP (rather than contractual sick pay), and the SSP changes below will have a significant impact.

• Removal of the Lower Earnings Limit, and employees will no longer need to meet the LEL to qualify for SSP.
• A new earnings‑linked calculation and SSP will be paid at 80% of normal weekly earnings (NWE) unless the SSP flat rate is lower.
• SSP will be payable from day one of sickness absence, as the Employment Rights Act 2025 abolishes the three unpaid waiting days.
• SSP will increase from £118.75 to £123.25 a week on 6 April 2026.

It is important to mention atypical workers, such as zero-hours and agency workers, as well as seasonal and irregular-hours staff. Establishing NWE is not always straightforward because of their fluctuating pay and variable working patterns. Employers can determine NWE, for example, by averaging pay over the previous 8-12 weeks or by following the relevant contractual arrangements to ensure SSP reflects actual earning patterns.

What do the SSP changes mean for employers?

The scope of SSP entitlements is significantly widened. As well as administrative adjustments to update policies and payroll processes, the reforms carry a cost implication for organisations of all sizes.

The Government estimates that removing waiting days and abolishing the LEL, combined with introducing the 80% earnings‑linked calculation, will increase employer SSP costs by around £450 million a year. Although a significant sum, it equates to roughly £15 more per employee according to the Government’s impact assessment. Crucially, earlier access to SSP may boost productivity by allowing employees to stay home when unwell without feeling compelled to attend work.

Employer concerns about increased sickness absence could be mitigated through strengthened sickness management. This includes conducting return‑to‑work interviews promptly, even after short periods of illness, which can help to identify underlying issues early and reduce avoidable absences. It can also include structured return-to-work planning, phased returns, and temporary adjustments.

How can employers prepare for the changes?

• Update payroll systems for earnings‑linked SSP and day‑one entitlement.
• Review and update sickness absence policies, contracts and employee handbooks and communicate these changes to employees.

• Budget for increased SSP.
• Identify roles or departments most affected by the wider eligibility rules.

• Train managers and HR on the new regime.
• Strengthen sickness absence management processes.
• Establish the number of atypical workers and how their normal weekly earnings are calculated.

Conclusion

The April 2026 SSP reforms represent a major shift in the UK’s approach to sick pay, expanding access and enhancing financial protection for employees. While these changes introduce additional costs and compliance requirements for employers, early preparation will support a compliant and well‑managed transition.

By reviewing systems and policies now, organisations can ensure they are ready for the new SSP regime and are equipped to support staff and manage sickness absence effectively.

Hannah Waterworth

Hannah Waterworth is an employment solicitor in Blake Morgan’s Employment, Pensions, Benefits and Immigration team.

The estate of late tech entrepreneur Mike Lynch is facing the prospect of being effectively wiped out after the High Court ordered it to pay $1.24 billion in damages and interest to Hewlett Packard Enterprise (HPE).

The ruling marks the latest development in one of the UK’s most high-profile corporate fraud cases, stemming from HPE’s $11.7 billion acquisition of Autonomy in 2011.

The court had already awarded HPE approximately £700 million in damages last year. However, the addition of interest, calculated at around $236 million, has pushed the total liability to $1.24 billion.

Mr Justice Hildyard confirmed the additional sum and rejected an application by Lynch’s estate for permission to appeal, although a further appeal could still be sought through the Court of Appeal.

The case dates back more than a decade, with HPE first alleging fraud in 2012. The company argued that Autonomy’s financial position had been misrepresented ahead of the acquisition, a claim upheld by the High Court in 2022.

The judge found that Lynch and his former chief financial officer Sushovan Hussain had misled HPE, although he also concluded that the US firm would likely have proceeded with the deal regardless due to Autonomy’s perceived strategic value.

Hussain, who was convicted in the US and served a prison sentence, reached a separate £77 million settlement with HPE last year.

The scale of the damages raises serious questions about the viability of Lynch’s estate, which is estimated to be worth around £500 million, significantly less than the amount awarded.

However, the ultimate impact may depend on the structure of family assets. Many holdings, including property and investments, are reportedly in the name of his widow, Angela Bacares. These include Loudham Hall in Suffolk and shares in cybersecurity firm Darktrace, which were sold for more than $300 million in 2024.

Legal experts suggest that HPE may seek to pursue those assets if it can demonstrate they were effectively controlled by Lynch, potentially extending the scope of recovery.

The ruling comes in the wake of Lynch’s death in August 2024, when he drowned alongside his daughter and others after a yacht accident off the coast of Sicily. The incident occurred shortly after his acquittal in a US criminal trial related to the same case.

Despite the scale of the damages award, the judge was critical of aspects of HPE’s approach, describing the company’s claimed losses as “exaggerated” and the litigation process as unnecessarily prolonged.

HPE welcomed the decision, stating it brings the company “another step closer to resolution” of the dispute.

For the Lynch estate, however, the focus now shifts to whether an appeal can be mounted, and how much of the remaining assets can be protected.

The case stands as a landmark in UK corporate litigation, not only for the scale of the damages but also for its long-running nature and the complex intersection of civil and criminal proceedings across multiple jurisdictions.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

The developer said demand had been stunted amid uncertainty in the lead up to November’s Budget

Housebuilder Bellway says it has grown half-year operating profits and the number of houses it has completed.

In an update to shareholders, it said total housing completions had grown 2.7% to 4,702 homes, up from 4,577 in the same period last year. Meanwhile underlying operating profit, before exceptional items and £10.7m legacy building safety issues costs, grew 1.5% to £159m.

Demand for Bellway’s homes was said to have been impacted by pre-Budget uncertainty in the run up to the Chancellor’s speech in late November. Chief executive Jason Honeyman said the firm had not experienced its typical pick-up in reservations during the autumn, but there had been increases in January.

The Newcastle-based firm, which is celebrating its 80th anniversary this year, said trading over the last six weeks had seen its private reservation rate per outlet per week, including bulk sales, fall slightly to 0.70 from 0.76. However, volume output in 2026 is expected to be ahead of previous expectations – at between 9,300 to 9,500 homes.

Average selling price is now expected to be about £325,000 – an increase owing, bosses said, to a change in the type of houses and expected conversions of completions from the firm’s bulk sales. Speaking to BusinessLive, Bellway’s chief commercial officer Simon Scougall said the firm was on track to deliver growth housing volume and profits this year.

Mr Scougall said the firm had not seen any marked deterioration in the market since the outbreak of war in Iran, with footfall to sites good and cancellation rates “steady”. He said: “It’s so far so good, but obviously it’s not lost upon us what’s happening out there and the troubles in the Middle East may have an impact in the next few months.

“It’s difficult to call that because you’ve got customers who’ve been coming out who will have made up their minds to buy a house from us about two months ago and have the benefit of a mortgage offer – and a pretty good mortgage offer further to that.

“So, we’re looking at recent history to a degree and we’re still in a comfortable position for year end, and we’re pretty well sold for year end. So we’ll see what the next few weeks bring – we’ll know more in April – and next weekend is probably when we’re going to see any impact, if at all.”

Jason Honeyman, chief executive, said: “Bellway has delivered a robust first half performance in a challenging market. While our industry continues to face several headwinds, we have seen an improvement in customer demand and reservations since the start of the new calendar year.

“At this stage, the situation in the Middle East has not had a material impact on trading and, supported by our forward order book, we are on track to deliver FY26 underlying operating profit within the range of £320m-£330m.

“The ongoing conflict in the Middle East heightens the risk of both inflationary cost pressures and an impact to customer demand, and we have already seen volatility return to the mortgage market. Notwithstanding this, I am confident that our self-help and drive for capital efficiency will help mitigate the impact on our strategy to increase cash generation and shareholder returns.

“Bellway has a strong balance sheet and land bank, and under stable market conditions, the Group is well-positioned to continue delivering volume growth and much needed high-quality new homes in the years ahead.”

The four-star property has been under the same family ownership for the last 40 years

An historic Cornwall hotel whose visitors have included Queen Victoria and the Beatles has been sold off for an undisclosed sum. The Atlantic, in Newquay, was established in 1892 and commands a dramatic clifftop position with panoramic views of the ocean and Cornish coastline.

The four‑star venue, which has been owned by the Cobley family for the last 40 years, was acquired by the Cornwall Hotel Collection. The group already owns three hotels in the Duchy: The Greenbank, The Alverton, and The Falmouth, the most recent of which was acquired in 2024.

Ben Young, managing director of Cornwall Hotel Collection, said: “We are delighted to bring The Atlantic Hotel, Newquay, into our family of Cornish hotels. This landmark property perfectly complements the Cornwall Hotel Collection, strengthening our commitment to exceptional Cornish hospitality, heritage, and guest experience across our portfolio spanning Cornwall.

“We’d like to thank the previous owners for their stewardship over the past 40 years and we look forward to preserving and maintaining their legacy.”

The Atlantic is set in some eight acres of landscaped grounds and private headland. The hotel comprises 57 ensuite bedrooms and suites, two apartments, a large three-bedroom owner’s apartment, and dining, events and entertainment facilities, accommodating 1,200 guests. The property also has leisure and spa facilities including two pools.

The Atlantic Hotel’s former owner, Lorraine Stones, said: “After many successful years of trading, our family are so pleased to be able to pass on our iconic hotel to the Cornwall Hotel Collection in the knowledge its legacy will be safe in their hands. We wish them all the very best for the future.”

Stephen Champion, director at property firm Christie & Co, which managed the sale process, added: “We are delighted to confirm the sale of The Atlantic Hotel, one of Cornwall’s most iconic hotels.

“The hotel generated significant buyer interest when it launched to the market, attracting competitive bidding from multiple parties. We are proud to have acted in this landmark transaction and look forward to seeing the next chapter of The Atlantic Hotel under the Cornwall Hotel Collection’s ownership.”

United Airlines is accelerating its sweeping push into premium travel as surging fuel costs driven by the conflict with Iran drive oil prices higher and put downward pressure on profits.

The carrier warned oil could remain above $100 a barrel through 2027 and reach as high as $175, a scenario that would increase its annual fuel bill by roughly $11 billion — more than double its best-ever profit, CEO Scott Kirby said.

United plans to cut about five percentage points of capacity this year while expanding higher-margin premium seating, betting wealthier travelers and corporate customers will continue paying elevated fares.

Passengers in United’s Elevated Premium Plus seating. (United Airlines)

The airline also expects to take delivery of more than 250 aircraft by April 2028 – the most by any airline over a two-year period – as it builds out premium offerings across its network.

A STATE-BY-STATE LOOK AT GAS PRICES AS IRAN CONFLICT PUSHES OIL HIGHER

“We’ve positioned ourselves to get through these storms that are inevitable, stay focused on the long term and keep investing for the long term,” Kirby said.

New Airbus A321neo “Coastliner” and A321XLR aircraft will feature lie-flat Polaris seats and larger premium cabins, significantly increasing high-end capacity. The A321XLR alone will double premium seating compared with the older Boeing 757 jets it is replacing.

A United Airlines Airbus A321 “Coastliner” jet. (United Airlines)

United said the expansion will leave it with nearly twice as many lie-flat seats as its closest competitor, reflecting a broader industry shift toward higher-paying customers who are less sensitive to rising prices.

Andrew Nocella, United’s chief commercial officer, said demand remains strong.

“I can tell you that the environment is strong,” Nocella said. “We’ve been able to pass through many of the price increases necessary to cover” rising fuel costs.

A passenger in United Airlines’ XLR Polaris Studio seating. (United Airlines)

United has already increased premium seats per North American departure by about 40% since 2021 while hiring more than 60,000 employees and overhauling much of its fleet.

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By cutting less profitable flying and expanding premium capacity, United is aiming to protect margins and offset billions in higher fuel costs without significantly weakening demand.

Reuters contributed to this report. 

As the USS Abraham Lincoln carrier strike group steams through the Arabian Sea, military planners are confronting a low-tech challenge with potentially high stakes: waves of inexpensive Iranian drones that could overwhelm billion-dollar defenses through sheer numbers.

Iran has invested heavily in its Shahed-series “kamikaze” drones, small unmanned aircraft that cost as little as $20,000 to $35,000 apiece yet carry enough explosives to damage ships or aircraft. Defense analysts say Tehran’s strategy of launching hundreds or even thousands at once — a “saturation attack” — poses a credible threat to high-value targets like U.S. supercarriers, even if sinking one outright remains improbable.

The debate has intensified in recent months amid escalating tensions. In February, an F-35C fighter jet launched from the Abraham Lincoln shot down an Iranian Shahed-139 drone that approached the carrier “aggressively” in the Arabian Sea, U.S. Central Command said. Iran later claimed its naval drones struck the Lincoln, forcing it to withdraw — assertions Washington dismissed as false while confirming U.S. strikes on Iranian assets, including the drone-carrying vessel Shahid Bagheri.

Iran’s drone fleet forms the core of its asymmetric naval doctrine, designed to counter America’s conventional superiority in the Persian Gulf and Strait of Hormuz. The Shahed-136, the most widely known model, has a range of roughly 1,000 miles, a top speed of about 114 mph and a warhead of 66 to 123 pounds. Newer variants, including jet-powered Shahed-238 models, are faster and harder to intercept. Iran can produce them rapidly in underground facilities using commercial components, allowing mass deployment at a fraction of the cost of Western munitions.

Cameron Chell, CEO of Canadian drone manufacturer Draganfly, warned in January that Iran’s low-cost unmanned systems enable “saturation attacks” against vessels like the Abraham Lincoln. “If hundreds are launched in a short period of time, some are almost certain to get through,” Chell told Fox News Digital. “Modern defense systems were not originally designed to counter that kind of saturation attack.”

A single Shahed drone is no match for a carrier strike group. But swarm tactics exploit economics: each U.S. SM-2 interceptor missile costs more than $2 million, while Iran can expend dozens of drones for the price of one. “These drones give Iran a very credible way to threaten surface vessels,” Chell said. U.S. assets are “large, slow-moving and easily identifiable on radar.”

The Lincoln, a Nimitz-class carrier commissioned in 1989 and recently modernized, displaces about 100,000 tons and carries more than 5,000 sailors and up to 90 aircraft. Its strike group includes guided-missile destroyers and cruisers equipped with the Aegis combat system, which can track and engage hundreds of targets simultaneously. Layered defenses include:

– Fighter jets on combat air patrol for early intercepts.
– Standard Missile-2 and SM-6 interceptors for mid-range threats.
– Close-in weapon systems like the Phalanx CIWS Gatling gun and Rolling Airframe Missiles for last-second defense.
– Electronic warfare jammers and decoys to confuse incoming drones.

The Navy is also fielding new counter-swarm tools. High-energy lasers such as the 60-kilowatt HELIOS and ODIN systems can burn through drone components using the ship’s own electricity — effectively unlimited ammunition. High-power microwave weapons like Epirus’ Leonidas can fry electronics across multiple drones at once. Loitering interceptors such as Raytheon’s Coyote and Anduril’s Roadrunner-M are designed to hunt drones in the sky before they reach the carrier.

Even so, analysts acknowledge vulnerabilities. A 2026 Gulf News analysis noted that a “1,000-strong” swarm could exhaust kinetic interceptors, forcing reliance on emerging directed-energy systems whose performance in real combat remains unproven at scale.

Robert Farley, a senior lecturer at the University of Kentucky’s Patterson School of Diplomacy and International Commerce, argued that actually sinking a modern supercarrier is extraordinarily difficult. “Modern aircraft carriers are far larger and more resilient than their World War II kin,” he said. A Ford-class carrier like the Gerald R. Ford is 150% the size of the largest WWII-era flattop and features sophisticated internal compartmentalization. “It’s a very tough hill to climb.”

Historical tests back his point. In 2005, the decommissioned USS America endured weeks of live-fire attacks before being scuttled by internal charges — with damage-control teams deliberately withheld. Real-world fires aboard carriers such as the USS Forrestal in 1967 caused heavy casualties but did not sink the ships.

A more realistic Iranian goal, experts say, would be a “mission kill” — damaging flight decks, catapults or hangar bays enough to sideline the carrier for repairs. Even a near-miss or symbolic hit could carry political weight in Washington, where public reaction to American casualties or visible damage can influence policy.

Iran’s approach draws lessons from its proxies. Houthi rebels in Yemen, armed with Iranian-supplied Shahed drones and missiles, harassed Red Sea shipping for months in 2024-2025 without sinking a U.S. warship. The experience highlighted both the persistence of drone threats and the effectiveness of layered carrier-group defenses. U.S. destroyers routinely downed incoming drones and missiles, but the operations underscored the cost imbalance.

Iran has also experimented with “drone carriers” — converted merchant vessels like the Shahid Bagheri capable of launching up to 60 Shaheds at once — alongside fast-attack boats and anti-ship ballistic missiles. The Islamic Revolutionary Guard Corps Navy views these as tools to saturate sensors and deplete magazines before a decisive strike.

U.S. officials maintain that no American carrier has been lost to enemy action since World War II and that current capabilities keep the advantage firmly with American forces. Yet the Navy is accelerating investment in drone countermeasures, including AI-driven targeting and autonomous interceptors, precisely because the threat is evolving faster than traditional systems anticipated.

For now, the Abraham Lincoln and its escorts continue operations in waters where Iranian drones have already probed defenses. Whether Tehran can translate its low-cost swarm doctrine into a carrier-killing capability remains an open question — one that defense planners on both sides are watching closely as tensions persist.

The economic asymmetry is undeniable: Iran can lose hundreds of drones and still launch more the next day. The United States can lose none. That calculus, experts say, is reshaping naval warfare in the 21st century, even if the world’s most powerful warships remain afloat.