New proposed changes to sick pay rules could provide help to over one million workers

Daily Record

14-05-2025

The new Employment Rights Bill would see sick pay kick in from the first day of absence for all workers.
Employers will struggle with growing staff absenteeism under proposed UK Government plans to introduce sick pay from the first day of illness, critics have warned in Parliament. Concerns were raised in the House of Lords on Tuesday over the impact of scrapping the current three-day waiting period and removing the lower earnings limit to qualify for the payment.
The measures relating to Statutory Sick Pay (SSP) - worth £118.75 per week - form a key part of flagship workers' rights reforms. Labour argues the existing situation can force people to work when they are unwell, leading to the spread of infection and poorer productivity for businesses.
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Under the changes proposed in the Employment Rights Bill, sick pay will kick in from the first day of absence - while around 1.3 million on low wages would become eligible.
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However, Conservative shadow business minister Lord Hunt of Wirral argued the legislation brought with it 'a raft of unintended consequences'.
He said: 'Absenteeism is a critical issue for many businesses especially those in hospitality, retail and other service-based industries, where staff shortages can lead to disruption, cancellations and even closures.
'With the removal of waiting days for SSP and the expansion of eligibility it is essential that all of us should understand fully how these changes are going to affect absenteeism patterns across various sectors.
'One of the sectors most concerned with the potential rise in absenteeism that these changes will cause is of course hospitality.'
He added: 'The concern is that the reforms could result in workers taking sick leave when it may not be strictly necessary as the financial implications of their doing so would be mitigated by the statutory sick pay payment.'
'We believe it is essential that the Government thoroughly evaluates how these statutory sick pay provisions would affect absenteeism.
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'When workers can call in sick and expect SSP from day one businesses will inevitably be forced to deal with more absences at short notice.'
Fellow Conservative peer Baroness Noakes said: 'Extending the days for which payment is made is likely to increase the number of days lost to sickness, as the current incentive to work if the illness is mild will simply disappear.
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'The Government say they have no idea what the behavioural impact of the changes will be – whether positive or negative – but I am prepared to bet that there will be far more short-duration absences, which will qualify for statutory sick pay, than there were before.'
However, former general secretary of the Trades Union Congress (TUC) and Labour peer Baroness O'Grady of Upper Holloway said: 'The Covid pandemic exposed just how precarious life is for those in insecure, low-paid work, and we do not know how many preventable illnesses were caused by people struggling into work and spreading the virus because they could not afford to stay home.
'But we do know, as we have heard, that forcing people back to work when they are ill is bad for workers and bad for business, puts pressure on the NHS and is costly for the economy.'
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She argued SSP had failed to keep up with the cost of living or increases in the living wage.
Business minister Baroness Jones of Whitchurch said the proposed changes to sick pay would cost businesses around an extra £15 per employee, which she described as 'a relatively modest amount'.
She added: 'I assure the House that the Government remain committed to monitoring the impact of these SSP measures.'
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Lady Jones went on: 'Our proposals have to be seen in the wider context of the Bill. The Bill is intended to improve the experience of employees at work, so measures such as flexible working, guaranteed hours and protection from harassment could – we believe will – reduce stress at work, potentially leading to fewer incidents of burn-out and better employee mental health, and therefore fewer related absences.
'For us, that is an important challenge that we intend to monitor.'