Source · Select Committees · Women and Equalities Committee
Recommendation 11
11
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Previous Governments have done much work to improve the zero-hours contract policy, however, this work...
Recommendation
Previous Governments have done much work to improve the zero-hours contract policy, however, this work has not gone far enough. The coronavirus pandemic has sharpened the focus on the systemic issues with the zero-hours contracts policy, including the disproportionate number of BAME people on zero-hours contracts. The pandemic has highlighted the unequal way that zero-hours contracts operate: employers can deny furlough to employees and instead reduce their working hours to zero. In some cases, workers on zero-hours contracts are ineligible for Statutory Sick Pay. We recommend that the Government extends the eligibility criteria for Statutory Sick Pay to ensure all workers on zero-hours contracts can claim Statutory Sick Pay.
Paragraph Reference:
87
Government Response
Acknowledged
HM Government
Acknowledged
The government is committed to helping the lowest paid through the pandemic. The welfare system is best placed to provide this support and lower earners who already claim 12 UKRI: Researching Factors Affecting Ethnic Minority Groups During COVID-19 Universal Credit (UC) will automatically see their benefits adjust to compensate for lower earnings. The government has also announced extra support to those who will have to rely on the welfare system by increasing the 2020–21 UC standard allowance, WTC basic element, and LHA rates. According to Office for Budget Responsibility estimates, this represents a £7.4bn investment In the welfare system in 2020/21. Where an individual is not already in receipt of benefits, and they require further financial support while off work sick (for example where their income is reduced while on SSP or they are not eligible for SSP), they may be able to claim Universal Credit and/or new style Employment and Support Allowance (ESA). The government has made it easier for people to claim new style ESA by removing the seven-day waiting period which means people can get support from day one. The Health Is Everyone’s Business consultation which was published in July 2019, set out a number of proposals for reforming SSP. The government received a good response to the consultation from a range of stakeholders and is considering these. A response is expected to be issued shortly.