A landmark change to Statutory Sick Pay (SSP) could see over one million UK workers receive up to £100 more per week, thanks to new reforms announced by the Department for Work and Pensions (DWP).
The new rule, set to be introduced next year, will ensure that low-wage earners earning less than £123 per week receive guaranteed sick pay equivalent to 80% of their average weekly salary, or the standard SSP rate—whichever is lower.
How Will the SSP Changes Work?
Currently, Statutory Sick Pay (SSP) is set at £116.75 per week, increasing to £118.75 per week from April 2024. Employers must provide SSP to eligible workers for up to 28 weeks.
However, low-paid workers earning under £123 per week are currently excluded from SSP, meaning they receive nothing if they are too ill to work.
What’s Changing?
- 1.3 million low-wage earners will now receive 80% of their weekly salary if they earn less than £123 per week.
- Those earning above £123 per week will continue receiving SSP at the standard rate.
- The new system is designed to reduce financial hardship for low-income workers and prevent them from having to rely on benefits.
Who Is Eligible for Statutory Sick Pay?
To qualify for SSP under the new rules, workers must:
- Be classified as an employee.
- Have worked for their employer.
- Earn an average of at least £123 per week (or receive 80% of their salary if earning below this).
- Have been ill for more than three consecutive days, including non-working days.
Why Is This Change Being Introduced?
The Government hopes that by providing financial stability to sick workers, fewer people will be forced to quit their jobs and rely on benefits.
Work and Pensions Secretary Liz Kendall MP explained:
“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.”
She added:
“No one should have to choose between their health and earning a living, which is why we are making this landmark change.”
Impact on Businesses
The DWP describes the new policy as a “fairer rate”, balancing support for workers while ensuring businesses can manage the costs. The goal is to provide financial security while maintaining an incentive for people to return to work once they have recovered.
This Statutory Sick Pay reform marks a major shift in workers’ rights in the UK. With 1.3 million low-wage workers set to benefit, the changes ensure greater financial security for those unable to work due to illness.
If you earn less than £123 per week, check with your employer to see how these new SSP rules could help you in the future.
FAQ’s
Who is eligible for the new Statutory Sick Pay (SSP) changes?
Employees earning less than £123 per week will now receive 80% of their weekly salary when sick. Those earning above £123 per week will continue receiving SSP at the standard rate.
How much is Statutory Sick Pay increasing by in April 2024?
From April 2024, the standard SSP rate will rise from £116.75 per week to £118.75 per week, providing an extra £2 per week for those eligible.
How long can workers receive Statutory Sick Pay?
Employers are required to provide SSP for up to 28 weeks if an employee meets the eligibility criteria.
What is the purpose of these new SSP reforms?
The reforms aim to help low-wage workers receive financial support while sick, preventing them from having to rely on benefits and ensuring they can recover without financial stress.
When will these new SSP rules come into effect?
The changes are expected to be implemented next year as part of the Government’s plan to boost workers’ rights and improve living standards.
