Source · Select Committees · Work and Pensions Committee
Recommendation 6
6
Deferred
Consult small and medium-sized businesses on the design of a Statutory Sick Pay rebate.
Recommendation
The overall impact on business of reforming Statutory Sick Pay is hard to predict, but even if it did not result in the kind of net benefits some have predicted, we believe that larger businesses would be able to absorb the costs of the modest reforms we have recommended. For smaller businesses, however, a rebate of SSP costs would be an essential component of any set of reforms. If made conditional, such a rebate could also encourage businesses to manage sickness absences better. A conditional rebate would also align neatly with the Government’s recent commitments to improving access to occupational health services for employees of small businesses, and could be introduced alongside those other changes. The Government should consult small and medium-sized businesses on the design of a small business rebate for Statutory Sick Pay, including the eligibility criteria and any conditions that could apply, and introduce the rebate along with the other reforms we have recommended ahead of financial year 2025–26. (Paragraph 55) Other matters
Government Response Summary
The government did not commit to consulting on or introducing a small business SSP rebate, instead referring to the recently announced independent "Keep Britain Working" review which will broadly consider how employers can be supported in promoting healthy workplaces.
Government Response
Deferred
HM Government
Deferred
Employers having responsibility for paying sick pay helps maintain the strong link between the workplace and the employee, with employers encouraged to support employees to return to work when they are able. By reducing presenteeism and the spread of infectious diseases and allowing employees the time off work they need to recover, the Government believes that Strengthening Statutory Sick Pay will increase productivity. Until 2014, the Percentage Threshold Scheme was in place to enable employers to reclaim any amount of SSP which exceeded 13% of their National Insurance contributions bill for the month. The scheme was seen as administratively complex and was underused. The Government recently published the Get Britain Working White Paper which announced an independent review, Keep Britain Working, which will consider how UK employers can be supported in promoting healthy and inclusive workplaces and help more people to stay in, or return to, work.