This consultation [HERE] forms part of Government’s commitment to strengthen Statutory Sick Pay, as part of the plan to Make Work Pay, an ambitious agenda to ensure workplace rights are fit for a modern economy, empower working people and deliver economic growth.
Through the Employment Rights Bill, the Government has committed to ensure Statutory Sick Pay is strengthened for those who need it most, by removing the requirement to serve waiting days and extending eligibility to those earning below the Lower Earnings Limit.
The changes introduced within the Bill will mean that for some lower earners, including those earning below the flat rate, their rate of Statutory Sick Pay will be calculated as a percentage of their earnings. This consultation seeks views on what this percentage should be, to ensure it provides a fair earnings replacement when these employees need to take time off work due to sickness.
On 21 October, the DWP and DHSC Joint Work and Health Directorate launched a six-week Government Consultation asking respondents what this percentage should be, to ensure it provides a fair earnings replacement when these employees need to take time off work due to sickness. It is important that this percentage rate strikes the right balance between providing the financial security that employees need, retaining the incentives to return to work when appropriate, and the costs to businesses.
The Government will use the responses gathered to inform the percentage rate of earnings, to establish a fair earnings replacement which considers the views of employees, employers and Trade Unions. Following this consultation, we intend to specify the percentage rate in law and will seek to make this change through a government amendment to the Employment Rights Bill.
We welcome all views and would encourage you to respond to the consultation and share it with your wider networks. You can respond to the consultation by filling in THE DWP and DHSC Joint Work and Health Directorate online form or emailing the team address. The consultation will be open until 4 December 2024.
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