Recommendations & Conclusions
4 items
1
Conclusion
Fourth Report - Statutory Sick Pay
Accepted
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.
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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.
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Government response AI summary
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 the waiting period for payment …
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Department for Work and Pensions
3
Recommendation
Fourth Report - Statutory Sick Pay
Accepted
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 …
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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 who have multiple jobs, each earning below the LEL, to receive SSP, and it would support those not claiming benefits. It would also help to maintain the link between employers and employees. Since employees with more than one job, each earning above the LEL, already qualify for SSP more than once, we are not persuaded that removing the LEL would result in too much complexity. The Government should remove the lower earnings limit for Statutory Sick Pay ahead of financial year 2025–26.
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Government response AI summary
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 lowest earners at 80% of …
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Department for Work and Pensions
5
Recommendation
Fourth Report - Statutory Sick Pay
Accepted
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 …
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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 to receive a combination of SSP and usual wages in order to facilitate phased returns to work. Given how many employers permit phased returns where they can, as part of their own occupational sick pay arrangements, we can only assume, as the Minister said, that they find phased returns a useful tool in supporting employees back to work. Such flexibility, if not limited only to employees returning from periods of sickness absence, could also help people with fluctuating conditions to manage their Statutory Sick Pay 35 conditions better by reducing their hours periodically, as required, where this is in the interests of both them and their employer. The Government should amend legislation to permit Statutory Sick Pay to be paid in conjunction with usual wages ahead of financial year 2025–26.
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Government response AI summary
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.
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Department for Work and Pensions
7
Recommendation
Fourth Report - Statutory Sick Pay
Accepted
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. …
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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. We are disappointed that the Minister could not provide us with details of the Government’s awareness-raising work. The Government should set out what it is doing, and what else it plans to do, to raise awareness of entitlement to Statutory Sick Pay among employers and employees, and explain how it plans to measure its progress in this area.
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Government response AI summary
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 guidance services.
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Department for Work and Pensions