26 August 2024
A House of Commons research briefing has been released looking into Statutory Sick Pay (SSP), how it works and how it could be reformed.
The report covers the history of SSP reviews over the last decade and summarises the findings published as part of the Work and Pensions Committee. The report concluded that:
- the SSP rate was too low and should be raised in line with the flat rate of Statutory Maternity Pay;
- all employees should be eligible for SSP, not just those earning above the LEL;
- the waiting days should be retained, as removing them could have unpredictable consequences and result in significant additional costs to employers;
- the government should introduce an SSP rebate scheme for small employers to help them cover the additional costs arising from a reformed SSP regime; and
- the government should establish a contributory sick pay scheme for self-employed people to provide them with the same level of income protection as would be available under SSP.
The CIPP was please to provide both written and oral evidence to the committee, providing thoughts and comments that fed into the creation of the above recommendations. The labour government has committed to removing the lower earnings limit and waiting period for SSP which we are anticipating in the promised Employment Rights Bill. We will keep a close eye on developments in this area.
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