A rule change by the Department for Work and Pensions (DWP) is set to benefit over one million UK workers, potentially making them up to £100 per week better off.
The DWP has unveiled alterations to Statutory Sick Pay (SSP) that will affect 1.3 million low-wage earners as part of an initiative to enhance living standards.
Under the new rules, UK employees earning less than £123 per week will be guaranteed sick pay equivalent to 80 per cent of their average weekly wage or the SSP rate, whichever is lower. According to the DWP, this adjustment could result in some of the nation’s lowest earners being up to £100 better off each week compared to the existing system.
At present, employees who are too ill to work can receive £116.75 per week in SSP from their employers for up to 28 weeks. However, starting from April, the SSP rate will increase to £118.75 per week, providing an additional £2 per week for those eligible.
To qualify for SSP, individuals must be categorised as employees, have performed some work for their employer, earn an average of at least £123 per week, and have been ill for more than three consecutive days, including non-working days.
Currently, if you earn less than £123 per week, you are not entitled to any benefits if you’re too ill to work, reports the Express. However, the forthcoming changes, anticipated to take effect next year, will enable low-paid workers to take necessary time off while still receiving 80 per cent of their weekly salary or the new SSP rate.
The policy is expected to reduce the number of people relying on benefits, as they won’t have to leave their jobs during recovery periods. Liz Kendall MP, Secretary of State for Work and Pensions, expressed her concerns about the difficult choices sick workers have had to make in the past: “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.”
She further stated that no one should be forced to choose between their health and their livelihood, hence the introduction of this significant change: “No one should ever have to choose between their health and earning a living, which is why we are making this landmark change.”
Kendall described the new rate as beneficial for workers and fair to businesses, aligning with their plan to enhance rights, Make Work Pay, and deliver their Plan for Change: “The new rate is good for workers and fair on businesses as part of our plan to boost rights and Make Work Pay, while delivering our Plan for Change.”
The DWP has labelled the new rate as a “fairer rate”, asserting that it strikes an appropriate balance between providing financial security for ill workers and managing costs for businesses, all while maintaining incentives for individuals to return to work.