Source · Select Committees · Work and Pensions Committee
Recommendation 8
8
Rejected
Paragraph: 67
Establish a contributory sick pay scheme for self-employed people mirroring Statutory Sick Pay protection.
Recommendation
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.
Government Response Summary
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.
Paragraph Reference:
67
Government Response
Rejected
HM Government
Rejected
While the Committee acknowledged that self-employed people cannot be made eligible for SSP, it is important to highlight that many self-employed people already choose to take out some form of insurance or income protection to financially support them during periods of sickness absence. Further information on the Government’s work in this area is provided in response to recommendation nine. Self-employed people who are unable to work due to a health condition or disability and are without their own insurance may be eligible for New Style Employment and Support Allowance (NS ESA) if they satisfy the basic conditions of entitlement and the contribution conditions. Although it is not paid at the same rate as SSP, New Style ESA is an earnings replacement benefit for working age people who are unable to work due to a health condition or disability. Universal Credit is also available to those who are self-employed and are unable to work due to sickness, eligibility is subject to a means test and depends on individual circumstances.