Zarah ChoudharyThe Government has proposed changes to statutory sick pay (SSP) that would remove the earnings threshold, making all workers eligible for sick pay from the first day of absence.
However, the Trades Union Congress (TUC) raised concerns about the adequacy of these payments, particularly if rates are set as low as 60% of wages, which could leave low-paid workers struggling financially.
Currently, SSP provides £116.75 per week from the fourth day of absence, while more than a million workers do not qualify due to earning below the current threshold.
The proposed reforms aim to address this gap, but recent consultations revealed that some workers who currently qualify for full SSP may receive less under the new system if payments are tied to a percentage of their wages rather than the fixed SSP rate.
The TUC urged the Government to ensure no one is left worse off, recommending that workers receive the lower of their full SSP entitlement, or 95% of their earnings.
The TUC outlined that a part-time worker earning below the current SSP threshold would benefit from the new rules, but could face significant financial strain if payments were reduced to 60% of earnings.
A single parent on the national minimum wage could struggle to cover basic living costs, like groceries, under the lower payment rate.
Advocates argued that the lessons of the Covid-19 pandemic should guide reforms, and emphasised that the payment rate must be sufficient to prevent hardship for low-paid workers.
Workplace advocates continue to call for payments to be pegged to the lower of SSP or wages, ensuring no worker is worse off under the new system, while also urging a long-term increase in the overall SSP rate to better support workers during illness.
Tim Sharp, senior policy officer – trade union and employment law at the TUC, said: “The coronarvirus outbreak showed the dangers of an inadequate sick pay system.
“Lots of frontline workers were forced to choose between falling into poverty because they got no or little sick pay, or continue to work and risk spreading the virus.
“Four years on and many workers continue to face similar dilemmas every week.
“The Government is making the right choice in extending sick pay to all workers, without an income test.
“But when ministers announce payouts for low-paid workers in the coming weeks, they should peg them to SSP or wages, whatever is the lower.
“And no one should be entitled to less after the changes, than they are now.
“Then the next stage will be ensuring that the headline rate of SSP is improved.”
