Select Committee · Work and Pensions Committee

Statutory Sick Pay

Status: Closed Opened: 9 Nov 2023 Closed: 23 May 2024 9 recommendations 1 conclusion 1 report

Statutory Sick Pay (SSP) is the basic minimum statutory payment an employee is entitled to for periods where they are unable to work because of illness. A person is eligible for SSP from the fourth day they are off sick. To be eligible for SSP a person must be classed as an employee and earn …

Clear

Reports

1 report
Title HC No. Published Items Response
Fourth Report - Statutory Sick Pay HC 148 28 Mar 2024 10 Responded

Recommendations & Conclusions

4 items
1 Conclusion Fourth Report - Statutory Sick Pay Accepted

Statutory Sick Pay provides inadequate financial protection during periods of sickness absence.

Statutory Sick Pay does not currently provide adequate protection for those who most need protecting from financial hardship during periods of sickness absence. It consequently fails to perform its primary function of providing a basic level of income protection.

Government response. The government agrees that the current SSP system fosters economic insecurity and is taking specific actions to provide wider access, including extending eligibility to those earning below the Lower Earnings Limit (who will receive 80% of normal earnings) and removing …
Department for Work and Pensions
3 Recommendation Fourth Report - Statutory Sick Pay Accepted

Remove the lower earnings limit for Statutory Sick Pay eligibility for all employees.

All employees should be eligible for Statutory Sick Pay, not just those earning above the lower earnings limit (LEL). We accept that, as the Government says, those earning below the LEL may be entitled to Universal Credit, but there remains a compelling case for removing it. It would enable people …

Government response. The government committed to removing the Lower Earnings Limit from the SSP system through the Employment Rights Bill, which will make up to 1.3 million more employees eligible. They have also introduced an amendment to set the new rate for …
Department for Work and Pensions
5 Recommendation Fourth Report - Statutory Sick Pay Accepted

Amend legislation to permit Statutory Sick Pay payment alongside usual wages for phased returns.

We understand why the Government decided that the Covid-19 pandemic was the wrong time to introduce changes to Statutory Sick Pay, as these would have placed immediate additional costs on employers. This argument, which we believe is now less valid than during the pandemic, does not apply to enabling employees …

Government response. The government agrees with the recommendation and will amend the Period of Incapacity for Work through the Employment Rights Bill, allowing employees to receive SSP for individual days of incapacity and thus facilitate phased returns to work.
Department for Work and Pensions
7 Recommendation Fourth Report - Statutory Sick Pay Accepted

Publish strategy to raise awareness of Statutory Sick Pay entitlement and measure progress.

According to statistics, the enforcement of Statutory Sick Pay through HMRC appears to be reasonably effective. However, there is evidence which suggests that some workers are either too afraid to ask for SSP or not aware of their entitlement, indicating that the enforcement statistics do not tell the whole story. …

Government response. The government committed to establishing the new Fair Work Agency, which will take on SSP enforcement and increase awareness and accessibility of workers' rights as a single point of contact. They also mentioned continued engagement with employers and existing digital …
Department for Work and Pensions

Oral evidence sessions

2 sessions
Date Witnesses
31 Jan 2024 Jo Churchill · Department for Work and Pensions, Lorraine Jackson · Department of Health and Social Care, Mathew Akrigg · Chartered Institute of Payroll Professionals, Rachel Suff · Chartered Institute of Personnel and Development (CIPD), Rebecca Deegan · Association of British Insurers, Sean Povey · Department of Health and Social Care, Tina McKenzie · Federation of Small Businesses View ↗
17 Jan 2024 Amanda Walters · Centre for Progressive Change, Dr Gareth Millward · University of Southern Denmark, Nicola Smith · TUC, Professor Chris Rauh · University of Cambridge, Professor Matt Padley · Loughborough University, Thomas Hamilton-Shaw · Scope View ↗

Correspondence

1 letter
DateDirectionTitle
6 Mar 2024 Correspondence with Minister for Employment relating to Statutory Sick Pay