More than one million low-wage earners in the UK are set for enhanced sick pay benefits as part of new proposals to improve living standards. Roughly 1.3 million individuals earning under £123 per week can expect to receive sick pay at 80% of their weekly wage, in a shift poised to roll out next year.
The policy is designed to reduce reliance on benefits with officials stating that it will enable workers to retain their positions while recuperating. Some may find themselves up to £100 better off each week, in comparison to the current system.
Work and Pensions Secretary Liz Kendall said: “For too long, sick workers have had to decide between staying at home and losing a day’s pay, or soldiering on at their own risk just to make ends meet. No-one should ever have to choose between their health and earning a living, which is why we are making this landmark change. The new rate is good for workers and fair on businesses as part of our plan to boost rights and make work pay, while delivering our plan for change.”
Additionally, individuals will be eligible for sick pay from the first day off ill, unlike the present requirement of being unwell for three consecutive days. A study by the Resolution Foundation has highlighted that the UK’s statutory sick pay ranks among the lowest in comparison with other developed countries.
Currently, individuals earning under £123 per week are not entitled to statutory sick pay (SSP), while full-time employees with higher wages receive only £116.75 weekly, which is scheduled to increase to £118.75 in April. Under proposed changes, low-income earners will receive the lesser of 80% of their average weekly earnings or the new SSP rate.
The British Chambers of Commerce, representing businesses, has hailed the policy as a “fair compromise”. Despite the endorsement, concerns were raised by the trade body about the potential impact on businesses if sick pay is available from the first day off.
Jane Gratton, deputy director of public policy at the BCC, said: “Employers often struggle to find shift cover at short notice, leading to disruption for customers. The Government’s impact assessment did not produce compelling evidence on the day-one rights issue, so there may yet be unforeseen consequences.”
Trades Union Congress secretary-general Paul Nowak commended the development but indicated that it was just the beginning, advocating for a subsequent enhancement of the SSP for the lowest-paid workers: “We urge ministers in future to raise the replacement rate for the lowest earners beyond 80% and undertake a wider review of the statutory sick pay rate.”
Amid expectations of significant revisions to the Government’s employment rights Bill, officials look poised to propose a nine-month probationary period for new hires, an extension from the previously suggested six months. Furthermore, ministers are purportedly set to scrap a key proposal that would empower workers with the right to “switch off” after office hours – a pledge that was a cornerstone of Sir Keir Starmer’s manifesto promise for enhanced employment protections.
This initiative aimed at giving employees the liberty to disregard emails and calls linked to work outside of their regular hours, including rejecting extra weekend tasks. Nonetheless, it is anticipated that in the forthcoming week, as amendments to the Bill are introduced, ministers will announce the policy’s elimination, as reported by the Sunday Times.
