08/04/2024

STATUTORY SICK PAY: COMMITTEE REPORT WITH RECOMMENDATIONS (April 2024)

The House of Commons has published a Committee report, Statutory Sick Pay (SSP) with recommendations to the Government on how to reform SSP. The Government now has two months to respond to those recommendations.

The Report, from the Work and Pensions Committee,  notes that successive Governments have consulted on the need to reform SSP in response to criticisms that the rate of SSP is too low and too many people are excluded as they do not earn enough or have an absence lasting fewer than 4 days.

The Report’s Recommendations and Conclusions include:

1. SSP does not provide adequate support for those most in need against financial hardship during periods of sickness absence.
2. SSP rate is too low and suggests a modest increase to the payment in line with Statutory Maternity Pay (to strike a balance between providing additional financial support and not placing excessive extra costs on businesses.)
3. The Lower Earning Limit should be removed for entitlement to SSP.
4. Whilst there was some support for removing the 3 waiting Days, the Report recommends retaining the waiting days as removing them could have unpredictable consequences. Furthermore the Report notes that there is no way of knowing if removing the waiting days would increase or decrease sickness absence rates.
5. The Law should be amended so that SSP can be paid with usual wages. The Report suggests this could help those with fluctuating health conditions as it would allow them to reduce their hours periodically and better manage their condition.
6. There is a need to consult small and medium-sized businesses to design of a small business rebate for SSP to be introduced alongside our other proposed reforms.
7. That more should be done for self-employed persons who are not eligible for SSP so that they are no worse off than employees who receive the payment; the Committee recommends that the Government should establish a contributory sick pay scheme for self-employed people to provide them with the same level of income protection as would be available under SSP.

COMMENT

It will be interesting to see the Government’s response to the Committee Report and how (or if) they choose to implement the recommendations. We expect any changes however to form part of the overall Government strategy (with the review of occupational health) to get people back in to, and to remain in, work. Any changes to SSP would apply to all of the United Kingdom.