Source · Select Committees · Work and Pensions Committee
Fourth Report - Statutory Sick Pay
Work and Pensions Committee
HC 148
Published 28 March 2024
Recommendations
3
Accepted
Para 52
Remove the lower earnings limit for Statutory Sick Pay eligibility for all employees.
Recommendation
All employees should be eligible for Statutory Sick Pay, not just those earning above the lower earnings limit (LEL). We accept that, as the Government says, those earning below the LEL may be entitled to Universal Credit, but there remains …
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Government Response Summary
The government committed to removing the Lower Earnings Limit from the SSP system through the Employment Rights Bill, which will make up to 1.3 million more employees eligible. They have also introduced an amendment to set the new rate for lowest earners at 80% of average normal weekly earnings or the flat rate, whichever is lower.
Department for Work and Pensions
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5
Accepted
Para 54
Amend legislation to permit Statutory Sick Pay payment alongside usual wages for phased returns.
Recommendation
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 …
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Government Response Summary
The government agrees with the recommendation and will amend the Period of Incapacity for Work through the Employment Rights Bill, allowing employees to receive SSP for individual days of incapacity and thus facilitate phased returns to work.
Department for Work and Pensions
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7
Accepted
Para 62
Publish strategy to raise awareness of Statutory Sick Pay entitlement and measure progress.
Recommendation
According to statistics, the enforcement of Statutory Sick Pay through HMRC appears to be reasonably effective. However, there is evidence which suggests that some workers are either too afraid to ask for SSP or not aware of their entitlement, indicating …
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Government Response Summary
The government committed to establishing the new Fair Work Agency, which will take on SSP enforcement and increase awareness and accessibility of workers' rights as a single point of contact. They also mentioned continued engagement with employers and existing digital guidance services.
Department for Work and Pensions
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Conclusions (1)
1
Conclusion
Accepted
Para 50
Statutory Sick Pay does not currently provide adequate protection for those who most need protecting from financial hardship during periods of sickness absence. It consequently fails to perform its primary function of providing a basic level of income protection.
Government Response Summary
The government agrees that the current SSP system fosters economic insecurity and is taking specific actions to provide wider access, including extending eligibility to those earning below the Lower Earnings Limit (who will receive 80% of normal earnings) and removing the waiting period for payment from the first day of sickness absence.