More than one million of the UK’s least affluent workers will now receive sick pay from the first day of illness, accounting for up to 80% of their weekly earnings, under new reforms aimed at enhancing living standards.
In the UK, statutory sick pay is notably low compared to other developed nations, as highlighted by the Resolution Foundation.
Currently, individuals earning under £123 weekly do not qualify for any sick pay, and others receive a mere £116.75 per week, set to increase to £118.75 from April. However, this benefit traditionally starts only after three days of illness.
The forthcoming amendments, slated for introduction next year, will ensure that workers earning below the £123 threshold are entitled to 80% of their wages in sick pay.
According to the government, this adjustment will enrich approximately 1.3 million of the UK’s lowest-paid workers by up to £100 weekly compared to the existing scheme.
This move aims to prevent these individuals from leaving their jobs due to illness, thus reducing dependence on benefits.
The government had previously pledged to reform sick pay for the lowest earners, particularly benefiting those in multiple low-income roles such as cleaners, carers, or parents managing childcare. Initial considerations suggested a possible sick pay rate of 60% of weekly earnings, but the decision was ultimately made to offer a more generous 80%.
Liz Kendall, the Secretary of State for Work and Pensions, stated, “For too long, sick workers have faced the tough choice between losing a day’s pay by staying home or risking their health to meet financial needs.”
“This pivotal change eliminates the need for such choices, benefiting both workers and businesses as part of our strategy to enhance employment rights and ensure work is rewarding, whilst advancing our broader plan for change.”
However, some worker’s rights organisations might feel let down, as the TUC had advocated for a minimum sick pay rate of 95% of weekly earnings for those earning under £123.
Paul Nowak, the TUC’s Secretary General, welcomed the increased sick pay but remarked, “This shouldn’t be where progress ends. We call on ministers to consider further raising the replacement rate for the lowest earners above 80% and to conduct a comprehensive review of the statutory sick pay rates.”
These changes are part of a series of updates to the employment rights bill, set to be presented in Parliament this week.
Expected modifications to the bill include extending the probationary period for new employees to nine months from the previously expected six, and abandoning the proposed “right to switch off” from work during evenings and weekends.
