DWP plans huge Statutory Sick Pay changes with just days left to have your say

Major changes are being planned to the levels of Statutory Sick Pay - and there are just days left to have your say. Employees, employers and others are being urged to look at the proposals and give their feedback.

The Labour Government says that by removing the lower earnings limit, it will extend SSP eligibility to around 1.3 million people. Millions aacross the country will benefit from this overhaul of workers' rights as the Government's Employment Rights Bill returns to Parliament, it said.

A DWP consultation on the planned legislation is seeking people's views on the rate of sick pay that should be paid for the lowest earners. The UK has one of the least protected labour markets in the OECD, falling far behind countries like France and Germany, Labour says.

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Under measures proposed in the Employment Rights Bill, over a million people will become eligible for the payment as the Lower Earnings Limit - currently at £123 - is set to be scrapped. Women and young people will particularly benefit from these changes, which will see people paid Statutory Sick Pay from day one of their absence, the government explained.

Employees will either be entitled to a percentage of their average weekly earnings or the SSP flat rate, set to be £118.75 from April 2025, whichever is lower.

DWP Minister for Employment Alison McGovern said: "The current system means too many employees across the UK are currently being failed, forced to choose between their health and financial hardship. Strengthening Statutory Sick Pay is an important step as we kickstart economic growth and break down barriers to opportunity.

"We will work in close partnership with employers and employees to get these changes right and I encourage everyone to share their views before the consultation ends."

The DWP said its consultation aims to ensure that the new percentage rate paid to the lowest earners strikes the right balance between providing the financial security that people need when they are off sick and retaining the incentives to return to work and balancing the costs to businesses.

The government says evidence shows that if Statutory Sick Pay is at the right level, it can be effective in helping people return to and stay in work and preventing them from becoming economically inactive.

The Employment Rights Bill is intended to match the needs of the modern economy and help people to make sure they are better off. Labour says it is expected to benefit workers in some of the most deprived areas of the country and deliver a potential £600 cash boost for those in the lowest-paid roles or in insecure work.

Consultation closes at 23.59pm on Wednesday, December 4, 2024. Responses to the proposals can be provided using an online form that can be found here.

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