Select committee: Work and Pensions Committee
Recommendation 8
Fourth Report - Statutory Sick Pay
Published 28 Mar 2024
Paragraph 67
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)
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 more egregious as many of them will be working in some of the lowest-paid and least secure parts of the economy. We recognise that self-employed people cannot be made eligible for SSP, but we strongly believe that the Government must do more to ensure they are no worse off financially during periods of sickness than employees on SSP. Our preference is for the Government to establish a contributory sick pay scheme for self-employed people. The Government should establish a contributory sick pay scheme for self-employed people to provide them with the same level of income protection as would be available under SSP.
From: Work and Pensions Committee, Fourth Report - Statutory Sick Pay (HC 148), paragraph 67, 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".