The UK government has announced a landmark reform to statutory sick pay (SSP), aimed at improving the financial security of low-paid workers. This change, expected to take effect next year, will entitle workers earning less than £123 per week to receive 80% of their weekly salary as sick pay. This reform is part of a broader effort to enhance workers' rights and address the challenges faced by the lowest earners in the country.
Currently, the UK's SSP system is one of the least generous among developed nations. Workers earning below £123 per week are not entitled to any sick pay, while those earning above this threshold receive a flat rate of £116.75 per week, which will rise to £118.75 in April. Moreover, SSP is only payable from the fourth consecutive day of illness, leaving many workers financially vulnerable during the initial days of sickness.
Under the new policy, approximately 1.3 million low-paid workers will benefit from sick pay equivalent to 80% of their average weekly earnings or the new SSP rate, whichever is lower. Crucially, this entitlement will apply from the first day of illness, eliminating the current three-day waiting period. The government estimates that some workers could be up to £100 better off per week under the new system, reducing the need for individuals to quit their jobs and claim benefits due to ill health.
The reform has been welcomed by many as a significant step forward in improving living standards and supporting workers' health. Liz Kendall, the Secretary of State for Work and Pensions, emphasized the importance of this change, stating, "No one should ever have to choose between their health and earning a living." She highlighted that the new rate is both fair for workers and manageable for businesses, aligning with the government's broader plan to boost rights and make work pay.
However, the policy has also sparked debate among stakeholders. Trade unions have expressed support for the reform but argue that the replacement rate should be higher than 80% to provide greater financial security for the lowest earners. On the other hand, business groups, such as the British Chambers of Commerce, have raised concerns about the potential impact on employers, particularly small businesses. They warn that the requirement to provide sick pay from the first day of illness could lead to challenges in finding shift cover and increased costs for employers.
The reform is part of a wider set of updates to the Employment Rights Bill, which includes other measures such as extending the probationary period for new workers from six to nine months. While the sick pay reform has been widely praised, the government faces pressure to address additional issues, such as the overall adequacy of SSP rates and the rights of workers to disconnect from work outside office hours.
As the UK moves forward with these changes, the impact on workers, businesses, and the broader economy will be closely monitored. The reform represents a significant step towards a fairer and more supportive system for low-paid workers, ensuring that they no longer have to choose between their health and their livelihood.
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