New Statutory Sick Pay rules coming as DWP issues big update

New sick pay rules in England could be rolled out as a Department for Work and Pensions ( DWP ) consultation comes to an end. The consultation for people to have their say on Statutory Sick Pay reforms closes on December 4.

It follows the publication of the Employment Rights Bill, which contains provisions on SSP, including the removal of the qualifying Lower Earnings Limit (currently £123 per week). This means lower-paid workers will also be eligible for SSP, at the rate of the lower amount of £116.75 per week (subject to an annual review) or a “prescribed percentage” of the employee’s normal weekly pay.

Alison McGovern, Labour Party Minister for Employment, said: “The current system means too many employees across the UK are currently being failed, forced to choose between their health and financial hardship. Strengthening Statutory Sick Pay is an important step as we kickstart economic growth and break down barriers to opportunity.

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"We will work in close partnership with employers and employees to get these changes right and I encourage everyone to share their views before the consultation ends.” The full consultation document also includes various examples of the potential impact on workers and employers, for rates ranging from 60 per cent to 80 per cent of weekly pay.

Justin Madders MP, Minister for Employment Rights, Competition and Markets, said: "Let me be clear - most employers do exactly that. Most employers do their best to ensure that they are going through the process properly and reach or exceed the standard expected.

"However, there are employers, who are choosing to ignore their statutory obligations. Instead, they are offering their employees more money than an employment tribunal can award so that said employees will accept unlawful dismissal through individual settlement agreements.

"We cannot let employers believe that they can essentially outbid the law and pay their way out of their obligations."