'Promising but costly' | DWP's sick pay guarantee for 1.3m lowest paid workers

The Government has released more details on their proposals to expand the eligibility of Statutory Sick Pay - a move that will impact up to 1.3 million low hours workers and have major implications for employers.

Historically, employees earning below the Lower Earnings Limit (LEL) of £123 per week were ineligible for SSP. The new reforms abolish this threshold, extending SSP coverage to an estimated 1.3 million low-income workers.

Under the updated system, these employees will receive 80% of their average weekly earnings from the first day of sickness absence, replacing the previous flat rate of £116.75 per week after a three-day waiting period.

The reforms also eliminate the existing three-day waiting period, ensuring that SSP is payable from the first day of illness. This change addresses concerns that the waiting period discouraged employees from taking necessary sick leave, potentially exacerbating health issues and reducing overall productivity.