Low-paid workers to get 80% of salary in sick pay

According to the latest plan from the UK government, over one million low-income workers in the UK will be entitled to sick pay equivalent to 80% of their weekly wages from the first day of illness. This initiative aims to protect the rights of low-income people, ensuring they have financial security when they are sick.

Currently, to qualify for statutory sick pay, employees must be sick for more than three consecutive days and earn at least £123 per week on average. The new policy will remove this restriction, allowing more people to receive sick pay in a timely manner. UK Employment and Pensions Secretary Liz Kendall said, "No one should have to choose between their health and their livelihood, which is why we are making this landmark change."

The British Chambers of Commerce (BCC) considers the 80% rate to be a "fair compromise" but warns that allowing sick pay from day one could lead to increased employee absenteeism, which small businesses may struggle to cope with. Jane Gratton, Deputy Director of Public Policy at the BCC, stated, "Employers often struggle to find cover at short notice, leading to disruption for customers. The government’s impact assessment has not provided convincing evidence on the issue of day-one sick pay entitlement and therefore there may also be unintended consequences."

The government says the changes will mean around 1.3 million low-income people will receive 80% of their average weekly earnings or statutory sick pay (currently £116.75 per week), whichever is lower, when they are ill. Kendall stated, "The new rate is good for workers and fair for businesses, it’s part of our plan to boost rights and make work pay, while also delivering on our plan to drive down inactivity." However, some groups have called for the government to set sick pay for the lowest-paid workers at no less than 95% of their weekly wages.

Trades Union Congress (TUC) General Secretary Paul Nowak said: "This shouldn’t be the end of the story. We urge ministers to raise the replacement rate for the lowest paid to above 80% in the future, and for a wider review of statutory sick pay rates." The changes to sick pay are part of several updates to the Employment Rights Bill, expected to be announced on Tuesday, aimed at reducing the number of people claiming benefits and raising living standards. The bill, released last year, proposed improvements to sick pay and allowing workers greater scope to request flexible working and unpaid parental leave.

However, the planned increases in workers' rights, along with the rise in the minimum wage and employer national insurance, have drawn criticism from many businesses, who say the combined impact will hit economic growth and employment. Furthermore, it emerged over the weekend that the government will not be including a "right to disconnect" for workers in the bill. This measure was intended to prevent employers from contacting employees via phone, email, and text messages outside of working hours. A government source told The Sunday Times: "The right to disconnect is dead. We have to keep compliance costs for businesses as low as possible."