Sick pay for the self-employed: what you need to know

We all get sick sometimes - it’s an unfortunate fact of life. And that means it’s pretty likely that at some point in your career, you’ll find yourself ill enough that it impacts your work. 

Luckily, the government does provide support when you’re not well enough to work. In this guide, we’ll highlight what support is available for small business owners and freelancers. 

Are small business owners entitled to sick pay?

Short answer: yes. Long answer: yes, but the type of sick pay you’re entitled to will depend on your business type (i.e. whether you are a limited company director, a partner in a partnership, or a sole trader). 

Limited company directors

Any employed workers, including limited company directors who are employees of their own company, are entitled to claim Statutory Sick Pay (SSP) from their employer. If you’ve been ill for at least one full working day, you’re entitled to claim SSP.

From April 2026, SSP is paid at a rate of up to £123.25 per week, or 80% of your normal average weekly earnings, whichever is the lower. For directors, any earnings you get from the business count towards your average weekly earnings, including director fees, dividends and wages. There are different rules for calculating SSP entitlement for directors who are not paid contractually by a regular salary.

Note: Employers cannot reclaim SSP from the government, unlike other kinds of statutory pay. If you’re a limited company director and don’t want your company to pay you SSP, you can apply for government support in the form of the Employment and Support Allowance (ESA). Employees cannot claim ESA if they’re receiving SSP from their employer. 

Sole traders and partners in partnerships

Sole traders and partners in a partnership cannot claim SSP (as they aren’t employees) but can apply for Employment and Support Allowance. 

What is Employment and Support Allowance (ESA) ?

ESA is a fortnightly benefit payment that’s designed to help you make ends meet until you’re well enough to return to work. You can claim for ESA if you meet all of the following criteria.

• You are under the state pension age.
• You have a health condition or disability that affects how much you can work.
• You are not currently claiming SSP through an employer.
• You are not currently claiming Jobseekers’ Allowance (JSA).
• You have paid enough National Insurance contributions in the last two to three years.

How much will I get paid through ESA?

Your ESA amount will depend on the stage of your application, as well as your age and whether you’re able to recover from your illness enough to get back into work. If you have money in savings, this won’t affect your claim. However, if you get more than £85 a week from a private pension, your ESA payments will be reduced. 

Once your claim has been assessed, you’ll be placed into the catchily-named ‘work-related activity group’ if you’re deemed able to get back to work in the future. If you’re deemed unable to return to work in future, you’ll be in the ‘support group’ and you’ll also be entitled to enhanced disability premium.

If your claim is successful, you’ll be paid every two weeks. If you’re in the ‘work-related activity group’, ‘New Style’ ESA lasts for 365 days. If you’re in the ‘support’ group, there’s no time limit.

What is ‘New Style’ ESA?

New Style ESA was brought in to integrate with Universal Credit, and removed the old income-related ESA which was means tested. So whether you see it called ESA or New Style ESA - it all refers to the same thing nowadays. 

Can I claim Universal Credit and ESA?

Yes, you can, depending on your level of savings and household income. If you get both benefits, your Universal Credit payment will be reduced by the amount of ESA you get. 

Can I still work while claiming ESA?

You can claim ESA while doing what the government calls ‘permitted work’. As a general rule, ‘permitted work’ means you can work up to 16 hours and earn up to £203.50 per week without affecting your ESA claim. 

If you’re claiming ESA and want to start work while still receiving payments, you’ll need to fill out a permitted work form and send it off (you should find the address at the top of any letters you’ve received about ESA).  

For more information on working while you claim ESA, take a look at the government’s guidance on ‘permitted work’.

How can I claim ESA?

Now we’re down to the really important bit! Bear in mind that the process for claiming ESA can take a while. You can apply for ESA online or, if you can’t apply online or you’re applying on behalf of someone else, you can apply by phone. 

To submit an application, you’ll need the following information:

• your National Insurance number
• your bank account number and sort code 
• your doctor’s name, address and phone number
• a fit note (aka a sick note) from your doctor if you’ve been unable to work for more than seven days in a row
• details of your income
• the end date of your Statutory Sick Pay (if you’re currently claiming this)

You’ll be contacted within 10 working days of submitting your application. If you’re eligible, you’ll be asked to schedule an appointment with a work coach from your local Jobcentre Plus office. This will usually be over the phone. The work coach will ask you to provide medical evidence and explain how your illness or disability impacts your ability to work. 

For more information on how to apply for ESA, take a look at the government’s instructions on claiming ESA. 

Now you know what kind of support is available to small business owners and freelancers when you’re not well enough to work. If that’s you right now: we hope you feel better soon!

2nd October 2026