Partner Sue Dowling, head of our Employment Law team, outlines how lower paid workers may benefit from proposed changes to Statutory Sick Pay (SSP).
The government has unveiled proposed amendments to the Employment Rights Bill that would make 1.3 million of the UK’s lowest paid workers eligible for sickness payments from their employers for the first time. All workers would also be entitled to receive Statutory Sick Pay (SSP) from their employer from day one of being on sick leave.
What is the current situation?
Currently, to be eligible to receive Statutory Sick Pay (SSP) from their employer, a worker must earn at least £123 per week on average, before tax. From 6 April 2025 this threshold will rise to £125 per week.
Eligible workers are entitled to receive SSP at a rate of £116.75 a week, after three days of sickness. From April, this rate will increase to £118.75 per week.
What are the proposed changes?
The government’s proposed changes would mean that all workers, including those earning less than the current threshold, would be entitled to receive SSP from day one of being on sick leave, as opposed to after three days under the current rules.
Workers would receive whichever is lowest out of 80% of their average weekly earnings at the universal rate.
What impact would the changes have?
According to the government: “The move will mean some of the lowest earners are expected to be up to £100 better off per week, compared to the current system.”
Work and Pensions Secretary Liz Kendall said: “No one should ever have to choose between their health and earning a living, which is why we are making this landmark change.”
She continued: “The new rate is good for workers and fair on businesses as part our plan to boost rights and make work pay, while delivering our plan for change.”
The British Chambers of Commerce has cautioned that providing SSP from day one of sick leave could result in higher levels of absenteeism and affect smaller companies in particular.
Inevitably, many companies have raised concerns in relation to the reforms given the fact that employers will be required to foot the bill. Many employers are still getting to grips with other increases, including those affecting National Insurance and the National Minimum Wage and Living Wage.
It is important to note that the proposals are part of a number of updates to the Employment Rights Bill and may still be subject to change, with the Bill not yet through the first Commons stage, so please look out for any further updates in due course.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
