More than one million of the UK’s lowest-paid workers will soon receive sick pay worth up to 80% of their weekly earnings from the first day of illness, in what the government is calling a significant boost to living standards. The proposed changes, expected to be introduced next year, will ensure that those earning below the £123 weekly threshold – who currently receive no statutory sick pay – are eligible for financial support when they fall ill.
This reform seeks to address longstanding criticisms that the UK has one of the least generous sick pay systems in the developed world. Under the current framework, only those earning above £123 per week qualify for statutory sick pay (SSP), which stands at £116.75 per week and will rise to £118.75 in April. However, this payment only kicks in after the first three days of sickness, leaving many workers financially vulnerable.
The government estimates that around 1.3 million low earners, including many cleaners, carers, and parents juggling multiple jobs, will be up to £100 better off per week under the new system. Officials argue that the move will also reduce the number of people needing to quit their jobs and claim benefits due to ill health.
A Long-Awaited Boost for the UK’s Lowest Earners
The introduction of this policy follows a government pledge last year to improve statutory sick pay for the lowest earners. Initial reports suggested that ministers were considering setting the new sick pay rate at just 60% of weekly earnings, but they ultimately opted for the more generous 80% level.
Liz Kendall, the Secretary of State for Work and Pensions, hailed the change as a necessary and long-overdue step forward:
“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. The new rate is good for workers and fair on businesses as part of our plan to boost rights and make work pay, while delivering our plan for change.”
Wider Reforms to Employment Rights on the Horizon
The changes to sick pay will form part of a broader set of updates to the employment rights bill, which is expected to be laid before Parliament this week. Other anticipated measures include extending the probationary period for new workers from six months to nine months and dropping plans for a proposed “right to switch off” outside of working hours.
The reform package comes at a time of increasing debate over workers’ rights and the cost of living, with campaigners pushing for further protections to ensure financial security for those in precarious employment. As the government moves forward with these changes, both workers and businesses will be closely watching how the new policies impact job security and economic stability.
The Workers Union Says…
“While this policy marks a step in the right direction, it remains to be seen whether it will provide sufficient support for the lowest earners. The decision to grant 80% sick pay from day one will be a lifeline for many workers who previously faced financial hardship when falling ill. However, with ongoing concerns about the adequacy of statutory sick pay across the board, further improvements may still be needed to ensure fairness for all UK workers.”
