In its response to the consultation on sick pay reforms proposed in the Employment Rights Bill, the government defended its decision to not increase the rate for statutory sick pay.
, the response report released today (5 March), revealed that there were more than 1,200 duplicates of responses welcoming the elimination of the waiting period for employees to claim SSP and “a large number” of replies calling for an increased rate.
After unions, and charities complained that the rate was still too low despite reforms proposed in April at PS118.75 per week, the government reiterated the fact that removing earnings thresholds would allow 1.3 million additional workers to qualify for SSP. The government also stated that employers could go beyond the statutory requirements.
The government confirmed that the lowest-paid workers would receive 80% or the SSP rate (whichever is lower) after removing the PS123 weekly threshold for qualification. It said that this rate “strikes a balance between financial security and cost to business”.
The 80% rate, it said, would result in a “relatively minor cost increase” for employees and would have a significant positive impact on them.
A worker earning PS110 per weekly would not receive SSP at present, but would under the reform receive PS88.
This response addressed the concerns of small business owners, industry groups, and others about the right to SSP on the first day of illness. They are concerned that this will increase costs and rates of absenteeism.
There were some suggestions to replace this system with a tiered one, where employees would receive a higher percentage of their income at the end the period of absence self-certification (currently seven days), but no plans have been made to implement this.
The government recognized that small and medium businesses are more likely to pay sick leave at the statutory rates, which means they will be responsible for a larger proportion of cost increases. They may also have to cover someone absent.
It said: “While we acknowledge that there may be some small costs for employers, especially small and medium sized ones, these are likely to offset the benefits of the changes in reducing absenteeism, and therefore increasing productivity and efficiency.”
In the response, it was also stated that the removal of the waiting period will allow employees to “take the time needed to recover from a short-term illness without having to struggle through work and spread infectious diseases like influenza”.
It added that workers with long-term conditions or those with fluctuating health issues would be able take a full day off to manage their condition. This would reduce presenteeism and help to create a phased return to the workplace plan.
Angela Rayner, Deputy Prime Minister said: “Whatever we invest in our workforce we will get back plus more.” We’re making statutory sickness pay a legal right for all workers for the first-time so that people don’t have to risk quitting their jobs.
“This is the pro-worker and pro-business government at work – increasing productivity while making sure people don’t need to choose between wealth and health, helping us deliver our Plan for Change.”
Over 1,700 responses were received from charities, business, unions, and workers during the six-week period of consultation.
TUC General Secretary Paul Nowak expressed his hope that the changes will be the beginning of a reform of sick pay, and added that the union would continue its campaign to increase rates.
He said, “Nobody should face hardships when they fall ill. These reforms prevent millions of people from being thrown off a financial cliff if they become ill.
The Employment Rights Bill of the Government is important because it makes statutory sick pay accessible to all employees – from day one. You will be able to protect your family by having sick pay benefits available from the very first day you are ill. You can rest and recover if you wish.
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