Consultation on sick pay rates for low earners

Plans to extend statutory sick pay (SSP) from day one of sickness to all workers regardless of pay rate and hours worked are out for a brief four-week consultation

The government is consulting with key stakeholders on the details of the extension of sick pay rights to all employees, including the rate of SSP which would be paid to low earners, known as the percentage rate of earnings.

The consultation only runs for four weeks until 4 December so it looks as if the government is keen to push ahead with the new rules sooner rather than later.

Under the proposals in the Employment Rights Bill, all workers will be entitled to SSP from the first day of sickness, rather than the current fourth day, abolishing the current ‘waiting period’.

The government acknowledged that the change would cost small and micro businesses the most as they currently pay around 60% of the total annual SSP in the UK, and many will not give staff enhanced employee contracts where sick pay could be part of the benefit package. It also expects the extension to SSP entitlement in the round will cost at least £1.04bn a year to employers, up from £0.65bn a year currently.

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