Recommendations & Conclusions
4 items
2
Recommendation
Fourth Report - Statutory Sick Pay
Rejected
The rate of Statutory Sick Pay is too low. Of all the proposals for increasing the SSP rate, we think a rate in line with the flat rate of Statutory Maternity Pay would strike the best balance. It would increase the rate to £172.48 per week (using the 2023–24 rate), …
Government response. The government rejected the recommendation to increase the Statutory Sick Pay rate in line with Statutory Maternity Pay, citing the different nature and estimated £500 million annual cost implications for employers, and the lack of reclaim mechanisms, while noting it …
Department for Work and Pensions
4
Recommendation
Fourth Report - Statutory Sick Pay
Rejected
Of all the reforms proposed to Statutory Sick Pay, removing the three-day waiting period would, we believe, have the most unpredictable consequences, since it could result in significant behavioural change by employees. It is uncertain whether removing the three-day waiting period would result in the increases in productivity across the …
Government response. The government rejected the recommendation to maintain the three-day waiting period, stating they will remove it from the SSP system through the Employment Rights Bill to allow employees to access SSP from their first day of sickness absence.
Department for Work and Pensions
8
Recommendation
Fourth Report - Statutory Sick Pay
Rejected
Far too many people lack a financial safety net during periods of ill health as a result of being self-employed. In this respect, if no other, Statutory Sick Pay does not reflect modern working practices, given the increasing number of people classed as self- employed. Their exclusion is all the …
Government response. The government rejected the recommendation to establish a contributory sick pay scheme for self-employed people, stating that many already have private insurance and existing benefits like New Style ESA and Universal Credit are available.
Department for Work and Pensions
9
Recommendation
Fourth Report - Statutory Sick Pay
Rejected
Group income protection (GIP), though not an alternative to Statutory Sick Pay, can help small businesses to manage the cost of long-term sickness absence and increase the chances of employees making a full return to work. We welcome the Government’s plans to work with employers to raise awareness of the …
Government response. The government rejected the premise of "double taxation" for Group Income Protection salary sacrifice arrangements, explaining the current tax treatment. For promoting GIP, they referred to the independent "Keep Britain Working" review, which will engage with health and work stakeholders …
Department for Work and Pensions