More than 1 million of the lowest-paid UK workers are to be guaranteed sick pay worth up to 80% of their weekly salary from the first day of sickness, under changes intended to boost living standards.
The UK has one of the stingiest rates of statutory sick pay in the developed world, according to the Resolution Foundation, with those earning less than £123 a week not entitled to anything. For the rest, the rate is set at just £116.75 a week at present, rising to £118.75 – or £3 an hour – for full-time workers from April, but that only kicks in after three days of sickness.
Under the changes, expected to be introduced next year, workers earning below the £123 limit will be entitled to sick pay of 80% of their wages. The government says this will mean 1.3 million of the UK’s lowest earners will be up to £100 a week better off than under the current system, keeping more people off benefits, as they will not need to quit their jobs while ill.
The government had promised last year to reset sick pay for the lowest earners, with those working multiple jobs such as cleaners, carers or parents juggling childcare expected to benefit most. It had been thought to be considering a rate of as little as 60% of weekly pay, before plumping for the higher rate.
Liz Kendall, the secretary of state for work and pensions, 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 our plan to boost rights and make work pay, while delivering our plan for change.”
However, there could be disappointment among workers’ rights groups as the TUC, which had previously urged the government to set sick pay for those under the £123 limit at no less than 95% of weekly pay.
Paul Nowak, the secretary general of the TUC, welcomed the upgrade to sick pay but said: “This shouldn’t be the end of the story. 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.”
The changes to sick pay will be introduced as part of a string of updates to the employment rights bill to be laid before parliament this week.
Changes to the bill are expected to include setting a probationary period for new workers at nine months, rather than the six months previously anticipated, and ditching a mooted “right to switch off” at evenings and weekends.
Source: theguardian.com
