Select committee: Work and Pensions Committee
Recommendation 10
Fourth Report - Statutory Sick Pay
Published 28 Mar 2024
Paragraph 76
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)
The statutory framework for Statutory Sick Pay is causing particular problems for recruitment companies in respect of the payment of agency workers. It is not sufficiently clear when a day is a qualifying day for agency workers or how a recruitment company might properly end their liability for paying SSP in respect of such workers. The Government should review the operation of Statutory Sick Pay in respect of agency workers and if necessary set out proposals for amending secondary legislation to provide the necessary clarity to those employing them.
From: Work and Pensions Committee, Fourth Report - Statutory Sick Pay (HC 148), paragraph 76, 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".