Source · Select Committees · Welsh Affairs Committee
Recommendation 5
5
Paragraph: 81
The UK Government must urgently review the level at which Statutory Sick Pay (SSP) is...
Conclusion
The UK Government must urgently review the level at which Statutory Sick Pay (SSP) is set. At only £96.35 per week, it is equivalent to only 20 per cent of the average wage—compared to 100 per cent in Germany and 90 per cent in France. In the interest of public health and to ensure that nobody is forced to choose between keeping themselves and others safe or putting food on the table, the UK Government must commit to increasing the level of SSP. The DWP should write to the committee with an update on progress within 6 months.
Paragraph Reference:
81
Government Response
Acknowledged
HM Government
Acknowledged
The UK Government rejects this recommendation. The Secretary of State for Work and Pensions is required by law to undertake an annual review of benefits and pensions. The Consumer Prices Index (CPI) in the year to September is the latest figure that she can use to allow sufficient time for the required operational changes before new rates can be introduced at the start of the new financial year. Benefit up-rating since April 1987 has been based on the increase in the relevant price inflation index in the year to the previous September. Over the past 35 years, there have been a number of occasions where up-rating decisions were implemented at a higher rate than the prevailing inflation when they come into force, as the index balances over time. For example, in 2012 benefits were increased by 5.2% whereas by the following April CPI was 3% and in 2020 the increase was 1.7% while CPI fell to 0.8% by April. Forecasts currently project inflation to be falling by Spring 2023. The Secretary of State’s decisions regarding benefits and pensions for 2022/23 were announced to Parliament on 25 November 2021 and the increase of 3.1% from April 2022 was debated and approved by both Houses of Parliament earlier this year. In 2022/23 welfare expenditure in Great Britain is forecast to be around £243bn. The Secretary of State’s annual review of benefits and pensions for the tax year 2023/24 will commence in the autumn as per convention. Following the completion of her review the Secretary of State’s decisions will be announced to Parliament in the normal way. In terms of metrics for developing benefits level, there is no objective way of deciding what an adequate level of benefit should be, as everyone has different requirements. Income- related Benefit rates are not made up of separate amounts for specific items of expenditure, but rather strike the balance of fairness between those who fund the system and those who rely on it, ensuring that work pays for those who are able to work, and that additional support is available for those who cannot.