Dozens of charities, businesses and trade unions have criticised that some low earners who are currently eligible for Statutory Sick Pay will have this right taken away
Thousands of low-paid workers could see their sick pay drop to as little as £93 a week under Labour’s employment rights plans, campaigners warn.
Dozens of charities, businesses and trade unions have criticised that some low earners who are currently eligible for Statutory Sick Pay (SSP) will see the amount they receive reduce. SSP is currently worth £116.75 a week, but will rise to £118.75 in April.
Economists and health experts have repeatedly warned that SSP as it is remains inadequate at current levels and forces unwell employees to return to work prematurely, leading to deteriorating health, lower productivity, and slower economic growth. And a bowel cancer sufferer has today warned sick pay nearly caused him “financial ruin” because it is so low.
Under current rules, workers do not qualify for SSP if they earn under £123 a week on average. Labour’s changes to sick pay rules, which were announced last week, will now mean 1.3 million people on low wages will get whichever is lowest out of 80% of their average weekly earnings or SSP.
The Safe Sick Pay coalition welcomed that all employees will now be eligible for sick pay, but warned that some workers who currently receive SSP will instead receive a percentage of their wage. It said for 300,000 workers this will be a weekly amount lower than the existing rate, with some receiving as little as £93 instead of £116 when ill.
Alan Barton, who is going through treatment for bowel cancer and working with the Safe Sick Pay campaign to raise the issue with MPs, said: “After paying taxes for my 40 year career, SSP nearly caused me financial ruin. It should rise to be more in line with the minimum wage. Ministers need to listen to the stories of the countless ordinary people affected. Working people shouldn’t have to choose between harming their health by going back to work too early or paying the bills.”
Amanda Walters, Director at the Centre for Progressive Change, said: “Ensuring that workers will get sick pay from day one is a fantastic first step by the Government, but hundreds of thousands of working people will still be left on sick pay that is too low to be safe. People suffering with serious illnesses like cancer or broken bones or recovering from operations will be forced back to work too soon.”
It comes as separate research by the TUC today shows work-related ill-health is costing the UK economy over £415million a week. The analysis of official statistics shows the number of days lost due to health conditions – including stress, depression and anxiety – has shot up by a third since 2010. The union organisation said that in 2023 to 2024, around 34 million working days were lost to work-related ill health, compared with 22 million in 2010.
TUC general secretary Paul Nowak said: “Work-related ill health is costing us hundreds of millions each week. That’s why the government’s Employment Rights Bill is so important. Cracking down on exploitative practices like zero-hours contracts and giving people more security will boost workers’ health, wellbeing and productivity. It will also help more people stay in work.”
A Government spokesman said: “No one should be forced to choose between their health and financial hardship. That’s why for the first time we will deliver statutory sick pay for 1.3 million of the lowest earners who previously received nothing, and ensure employees have the right to payments from the first day they are ill.
“These landmark reforms, as part of the Employment Rights Bill, will support over a million employees to stay in work, raise living standards and create opportunities as we deliver on our Plan to Make Work Pay for all.”