The UK government has announced a significant overhaul of its statutory sick pay system, promising to guarantee sick pay worth up to 80% of weekly salaries for over 1 million of the lowest-paid workers. This change, aimed at boosting living standards, will benefit those earning less than £123 a week, who are currently not entitled to statutory sick pay. The updated policy is part of a series of modifications to the employment rights bill set to be introduced in parliament this week, with implementation expected next year.
The UK has long been criticized for having one of the most meager statutory sick pay rates among developed nations. Currently, statutory sick pay stands at £116.75 per week, which will rise to £118.75 or £3 an hour for full-time workers from April, but only after three days of sickness. The new changes ensure that workers earning below the threshold will receive 80% of their wages from the first day of illness, a significant increase from the government's previously considered 60% replacement rate.
This adjustment is expected to improve the financial situation of 1.3 million of the UK's lowest earners, making them up to £100 a week better off compared to the current system. It is also anticipated that fewer individuals will find themselves needing to rely on benefits, as they will not be forced to quit their jobs when unwell.
Secretary of State for Work and Pensions, Liz Kendall, emphasized the importance of the changes:
“For too long, sick workers have had to decide between staying at home and losing a day’s pay or soldiering on at their own risk just to make ends meet. No one should ever have to choose between their health and earning a living, which is why we are making this landmark change.” – Liz Kendall
Despite these improvements, there are calls for further action. Paul Nowak, secretary general of the TUC, urged the government to continue enhancing the sick pay system:
“This shouldn’t be the end of the story. We urge ministers in future to raise the replacement rate for the lowest earners beyond 80% and undertake a wider review of the statutory sick pay rate.” – Paul Nowak