​£63 rise in statutory sick pay is overdue, MPs say

Members of Parliament (MPs) have deemed an increase in statutory sick pay (SSP) both necessary and overdue, emphasising the importance of finding a middle ground that supports employees without overwhelming employers. The Work and Pensions Committee suggests aligning SSP with the flat rate of Statutory Maternity Pay, proposing an uplift from the current £109.40 to £172.48 weekly.

The Committee also advocates for SSP to complement regular wages, facilitating a smoother transition back to work. Furthermore, it recommends making SSP accessible to all employees, removing the requirement for earnings above the lower limit of £123. In response, the government announced a forthcoming 6.7% increase in SSP.

The push for reform is partly attributed to the pandemic and subsequent economic challenges, which were deemed inopportune times for imposing additional financial pressures on businesses. However, the need for reform has intensified, with a record 185.6 million workdays lost to sickness or injury in 2022 amid a cost-of-living crisis. Sir Stephen Timms, Committee chair, highlighted the failing role of SSP as a safety net for ill workers, stressing the urgency for government action to enhance support.

The proposal also considers the growing self-employed workforce, suggesting a contributory sick pay scheme to ensure their financial security during sickness. While companies express concern over increasing operational costs, such as business rates and minimum wage regulations, the Department for Work and Pensions and the TUC underscore the critical need to reform the sick pay system, especially during COVID-19.

The government's £2.5bn Back to Work Plan, aimed at reducing sickness absence and expanding access to mental health services, represents a step towards addressing these issues. Still, as TUC general secretary Paul Nowak points out, comprehensive reform, including removing the lower earnings limit and the waiting period for sick pay, is essential for supporting vulnerable workers, particularly low-paid and insecurely employed individuals, many of whom are women.

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