Select committee: Work and Pensions Committee
Recommendation 5
Fourth Report - Statutory Sick Pay
Published 28 Mar 2024
Paragraph 54
Addressed to Department for Work and Pensions
Work and Pensions Committee Statutory Sick Pay All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
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.
From: Work and Pensions Committee, Fourth Report - Statutory Sick Pay (HC 148), paragraph 54, 28 March 2024
Government response
The government responded to the whole report on 14 May 2024 (deadline 28 May 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government states that it "firmly believes that there is a case to strengthen SSP" and is delivering changes through the Employment Rights Bill, while it does not adopt the Committee's recommendations to keep the waiting period or to raise the SSP rate in line with Statutory Maternity Pay.
- On the Lower Earnings Limit, the Government is extending eligibility to those earning below it, and has brought forward an amendment setting the rate at "80% of average normal weekly earnings, or the flat rate, whichever is lower". It says this means "up to 1.3 million more employees" become eligible.
- On the waiting period, the Government notes the recommendation came under the previous administration and says it "will remove the three-day waiting period from the SSP system through the Employment Rights Bill".
- On the SSP rate, the Government does not commit to align it with Statutory Maternity Pay, citing an estimated additional cost of "c.£500 million per year" to business. It says it "continues to review the rate of SSP each year as part of the annual uprating process".
- On a small business rebate, the response notes the Percentage Threshold Scheme was "seen as administratively complex and was underused" and points to the independent Keep Britain Working review. On agency workers, it will update guidance "in due course".