Source · Select Committees · Work and Pensions Committee
Fourth Report - Statutory Sick Pay
Work and Pensions Committee
HC 148
Published 28 March 2024
Recommendations
2
Rejected
Para 51
Increase Statutory Sick Pay rate in line with flat rate of Statutory Maternity Pay.
Recommendation
The rate of Statutory Sick Pay is too low. Of all the proposals for increasing the SSP rate, we think a rate in line with the flat rate of Statutory Maternity Pay would strike the best balance. It would increase …
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Government Response Summary
The government rejected the recommendation to increase the Statutory Sick Pay rate in line with Statutory Maternity Pay, citing the different nature and estimated £500 million annual cost implications for employers, and the lack of reclaim mechanisms, while noting it continues to review the rate annually.
Department for Work and Pensions
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4
Rejected
Para 53
Maintain the three-day waiting period for Statutory Sick Pay, subject to periodic review.
Recommendation
Of all the reforms proposed to Statutory Sick Pay, removing the three-day waiting period would, we believe, have the most unpredictable consequences, since it could result in significant behavioural change by employees. It is uncertain whether removing the three-day waiting …
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Government Response Summary
The government rejected the recommendation to maintain the three-day waiting period, stating they will remove it from the SSP system through the Employment Rights Bill to allow employees to access SSP from their first day of sickness absence.
Department for Work and Pensions
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8
Rejected
Para 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 …
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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.
Department for Work and Pensions
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9
Rejected
Para 73
Publish plans to promote Group Income Protection for small businesses and rectify double taxation.
Recommendation
Group income protection (GIP), though not an alternative to Statutory Sick Pay, can help small businesses to manage the cost of long-term sickness absence and increase the chances of employees making a full return to work. We welcome the Government’s …
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Government Response Summary
The government rejected the premise of "double taxation" for Group Income Protection salary sacrifice arrangements, explaining the current tax treatment. For promoting GIP, they referred to the independent "Keep Britain Working" review, which will engage with health and work stakeholders including insurers.
Department for Work and Pensions
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