Low-paid workers to get 80% sick pay guarantee, says Labour

Independent

03-03-2025

More than one million people on low wages will get improved sick pay conditions under new plans designed to boost living standards.
About 1.3 million people paid less than £123 per week in the UK will get guaranteed sick pay equivalent to 80% of their weekly salary as part of changes expected to come in next year.
Officials said the policy will keep more people off benefits because they will not need to quit their jobs while they recover.
They added that some people will be up to £100 better off per week, compared to the current system.
Work and Pensions Secretary Liz Kendall said: 'For too long, sick workers have had to decide between staying at home and losing a day's pay, or soldiering on at their own risk just to make ends meet.
'No-one should ever have to choose between their health and earning a living, which is why we are making this landmark change.
'The new rate is good for workers and fair on businesses as part of our plan to boost rights and make work pay, while delivering our plan for change.'
The policy also means people will receive sick pay from their first day of illness, compared to the three consecutive days you must have been ill to qualify currently.
Research from the Resolution Foundation has shown the UK has one of the lowest rates of statutory sick pay of developed nations.
Currently, people who earn less than £123 per week do not get anything, while for better-paid full-time workers, statutory is just £116.75 per week, rising to £118.75 in April.
Under the new plans, low earners will get 80% of their average weekly pay or the new rate of statutory sick pay, whichever is lowest.
The policy was described as a 'fair compromise' by the British Chambers of Commerce, which represents businesses.
However, the trade body said bringing forward sick pay to the first day of absence could hit companies.
Jane Gratton, deputy director of public policy at the BCC, said: ' Employers often struggle to find shift cover at short notice, leading to disruption for customers.
'The Government's impact assessment did not produce compelling evidence on the day-one rights issue, so there may yet be unforeseen consequences.'
Paul Nowak, secretary-general of the Trades Union Congress, said the move 'shouldn't be the end of the story', saying the rate should be higher.
'We urge ministers in future to raise the replacement rate for the lowest earners beyond 80% and undertake a wider review of the statutory sick pay rate.'
It comes amid expected changes to the Government's employment rights Bill, including setting a nine-month probation period for new workers, rather than the six months previously announced.
Ministers are also reportedly planning to axe the right to 'switch off' outside work hours, which was a central part of Sir Keir Starmer's manifesto promise aimed at strengthening employment rights.
The policy would allow workers to ignore work-related emails and calls outside office hours, including the right to refuse to take on extra work at the weekends.
However, ministers are expected to say in the coming week that the policy has been dropped when they table a series of amendments to the Bill, according to the Sunday Times newspaper.