Thousands of underpaid workers may face a reduction in their sick pay to as low as £93 per week under the proposed employment rights changes by the Labour party, according to campaigners.
Various organizations, including charities, businesses, and trade unions, have raised concerns that some low-income workers currently eligible for Statutory Sick Pay (SSP) could see a decrease in the amount they receive. SSP is presently valued at £116.75 per week, set to increase to £118.75 in April.
Economists and health experts have consistently highlighted the inadequacy of SSP at its current levels, leading to employees returning to work prematurely when unwell. This trend results in deteriorating health, decreased productivity, and slower economic growth. A bowel cancer patient has shared how the low sick pay almost caused him financial distress.
As per existing regulations, workers earning less than £123 per week on average do not qualify for SSP. Labour’s proposed changes to sick pay regulations would ensure that 1.3 million low-wage earners receive either 80% of their average weekly earnings or SSP, whichever is lower.
The Safe Sick Pay coalition has acknowledged the inclusion of all employees in sick pay eligibility but cautioned that some current SSP recipients could receive a reduced percentage of their wages. Approximately 300,000 workers might receive a weekly amount lower than the current rate, with some getting as little as £93 instead of £116 while on sick leave.
Alan Barton, undergoing bowel cancer treatment and advocating for fair sick pay through the Safe Sick Pay campaign, emphasized the need for higher sick pay aligned with the minimum wage. He urged ministers to consider the plight of ordinary individuals impacted by the current system, asserting that working people should not have to compromise their health or financial stability.
Amanda Walters, Director at the Centre for Progressive Change, commended the Government’s initiative to provide sick pay from the first day of illness but expressed concern that many working individuals would still receive insufficient sick pay. She highlighted the risk of individuals with serious illnesses being pressured to return to work prematurely due to inadequate financial support.
In a separate study by the TUC, work-related ill-health was reported to cost the UK economy over £415 million per week. The analysis revealed a 33% increase in the number of days lost due to health conditions like stress, depression, and anxiety since 2010. TUC’s general secretary emphasized the importance of addressing exploitative practices like zero-hours contracts to enhance workers’ health, well-being, and productivity.
Responding to the concerns, a Government spokesperson emphasized the commitment to ensuring no individual faces a dilemma between health and financial difficulties. The implementation of statutory sick pay for 1.3 million low earners who previously received no support is a significant step, along with the provision for employees to receive payments from the first day of illness. These reforms, part of the Employment Rights Bill, aim to help over a million employees stay employed, improve living standards, and foster opportunities in line with the government’s agenda to enhance workplace conditions.