The UK government is introducing a major change to statutory sick pay (SSP) that will benefit over one million low-paid workers. Under the new plan, eligible workers will receive 80% of their weekly earnings from day one of illness.

This policy is part of the upcoming Employment Rights Bill, which aims to strengthen workers' rights while reducing reliance on benefits.

Current Statutory Sick Pay Rules

Right now, UK employees can only claim SSP after three consecutive sick days, and they must earn at least £123 per week to qualify. The current SSP rate is £116.75 per week, regardless of salary.

What’s Changing?

The government’s new proposal ensures that low-paid workers will receive 80% of their average weekly wages or the SSP rate (whichever is lower) from the first day of illness.

Why This Matters

• More financial support – Over 1.3 million workers will get improved sick pay.
• Better health security – Employees won’t have to choose between going to work sick or losing income.
• Support for low earners – People in lower-income jobs, such as retail and hospitality, will benefit the most.

Concerns from Businesses

While the reform is seen as a positive step for workers, some business groups worry about its impact on employers:

• The British Chambers of Commerce (BCC) supports the 80% pay rate but warns that sick pay from day one could increase absenteeism, especially in small businesses.
• Jane Gratton, Deputy Director of Public Policy at BCC, highlighted that last-minute absences could disrupt operations and make shift scheduling harder.
• Critics argue the government hasn’t provided enough evidence on how this change will impact the economy.

Is 80% Sick Pay Enough?

Some labor groups, including the Trades Union Congress (TUC), believe that 80% of wages isn’t sufficient.

• TUC General Secretary Paul Nowak is calling for a 95% replacement rate for low earners.
• Unions are also demanding a wider review of sick pay policies to provide stronger protections.

Employment Rights Bill – What Else is Included?

This sick pay reform is part of the broader Employment Rights Bill, set to be announced on Tuesday. Key proposals include:

• Stronger workers' rights
• More flexible working policies
• Expanded unpaid parental leave

However, the bill has faced pushback from businesses, who warn that rising labor costs—including the minimum wage increase and National Insurance hikes—could negatively impact growth and hiring.

“Right to Switch Off” Dropped from Bill

One notable omission from the bill is the proposed “right to switch off”—a policy that would have prevented employers from contacting workers outside working hours.

A government source told The Sunday Times:
"The right to switch off is dead. We have to lower business compliance costs as much as possible."

Final Thoughts

The government’s sick pay reform is a significant shift that aims to improve worker protections while balancing business concerns. However, debates continue over whether 80% of wages is enough and how it will affect employers.

The Employment Rights Bill announcement on Tuesday will provide further details on these changes.