04 March 2025
As part of the ‘Plan to Make Work Pay’, the government has been consulting on some planned changes to how Statutory Sick Pay (SSP) works.
What are the proposed changes to SSP?
The primary changes are to remove the waiting days and the removal of the lower earnings Limit (LEL) threshold for SSP eligibility. A recent consultation asked what percentage of earnings those earning below the LEL should be paid rather than the flat rate of SSP.
What percentage of earnings should those earning below the LEL be paid?
The consultation outcome is out now, and it has been confirmed this will be set at 80%.
The government states that 80% “strikes the right balance between providing financial security to employees who need it, whilst limiting additional costs to businesses.”
How are low earners affected by the SSP changes?
Regarding low earners who may see their SSP rate reduce with the new rules, they state:
“The government notes concerns as to a small number of employees who earn just above the Lower Earnings Limit and may receive less SSP than they would under the current system. However, by abolishing the Waiting Period any potential loss is offset for most short-term absences.”
What issues were raised in the SSP consultation?
Other issues raised in consultation responses include:
- Employer concerns over the removal of the waiting period
- Business support for payments (small businesses)
- Calls to increase the rate of SSP
- extending SSP eligibility to the self-employed
- extending SSP eligibility to include all workers, not just those classified as employees
- changing the structure of SSP so that it is calculated on an hourly, rather than daily, basis
- extending the duration of SSP from 28 weeks to 52 weeks.
However, there are currently no plans to make further changes than those already announced.
On a briefing call with the government departments, the CIPP have been advised that further consultations on the implementation are to be released in due course. This will be to address the roll out of the new measures and ensure business compliance when legislation becomes active.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.