1st Special Report - Statutory Sick Pay: Government Response

This is the government's response, published 14 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".

Read the government's response ↗ Report an error