Source · Select Committees · Welsh Affairs Committee
Recommendation 6
6
Given the comparatively high proportion of low paid workers in Wales, we were concerned to...
Conclusion
Given the comparatively high proportion of low paid workers in Wales, we were concerned to hear of issues regarding the eligibility criteria for Statutory Sick Pay. While we acknowledge that there may be other support available to unwell workers, the pandemic has highlighted the dangers of someone attending work when they are unwell. Sick pay benefits wider society, not just the sick, and we would welcome the UK Government reviewing the eligibility criteria for this benefit. (Paragraph 82) The Benefits System in Wales 43
Government Response
Acknowledged
HM Government
Acknowledged
The UK Government has already taken action in response to Baroness McGregor-Smith’s report, commissioned by the Secretary of State, to significantly improve the work incentives in Universal Credit. Since last November, the UK Government has cut the Universal Credit taper rate from 63% to 55% and increased Universal Credit work allowances by £500 per year. These two measures mean 1.7m households will keep on average, around an extra £1,000 a year. These changes represent an effective tax cut for low income working households in receipt of Universal Credit worth £1.9 billion a year in 2022-23. They will allow working households to keep more of what they earn and strengthen incentives to move into and progress in work. Moreover, work allowances have been further increased as part of the annual up-rating exercise in April.