The government has defended its decision not to increase the rate of statutory sick pay (SSP) in its response to a consultation on proposed sick pay reforms in the Employment Rights Bill.

In the response document published today (5 March), it revealed there had been more than 1,200 duplicate responses welcoming the removal of the waiting period before employees can claim SSP, and a “large number” of responses calling for an increase to the rate.

After criticisms from unions and charities that – despite the proposed reforms – the rate is still too low at £118.75 a week from April, the government reiterated that removing the earnings threshold would make 1.3 million more workers eligible for SSP. It also noted that employers can go further than the statutory requirements if they wish.

Statutory sick pay

Sick pay changes mean 1.3 million will receive up to £100 more per week 

Consultation: Changes to statutory sick pay 

Confirming that the lowest paid workers will receive 80% of earnings or the rate of SSP (whichever is lowest) after the removal of the £123 per week threshold to qualify, the government said the rate “strikes the right balance between providing financial security for employees who fall ill, and the cost to businesses”.

It said the 80% rate would be a “relatively minimal cost increase for workers” that would have a significantly positive impact on employees.

Currently, for example, an employee earning £110 per week would receive no SSP, but under the reform, they would receive £88 per week.

The response also addressed concerns about the entitlement to SSP from the first day of sickness, which has attracted criticism from small business owners and some industry bodies, who are worried this will drive up costs and increase rates of absenteeism.

Some responses suggested replacing this with a tiered system that would mean employees get a percentage of income that increases at the end of the absence self-certification period (currently 7 days), but there are no plans to follow this up.

The government acknowledged that small- or medium-sized businesses would be more likely to pay sick pay at the statutory rate and would therefore face a greater proportion of the cost increases, as well as having to fund cover for someone who is absent.

“Whilst we recognise that there are likely to be small additional costs, particularly for small and medium-sized employers, these will likely be offset by the benefits that the changes will bring in reducing presenteeism and therefore boosting productivity and efficiency,” it said.

The response also claimed that removing the waiting period would mean employees “feel better able to take the time they need to recover from short term illness, without struggling through work and often spreading infectious diseases such as influenza”.

Workers with long-term or fluctuating conditions would be able to take a day of absence to manage their condition, helping to reduce presenteeism, it added, and removing the waiting period would help with phased return to work plans.

Deputy prime minister Angela Rayner said: “What we put into our workforce, we get back and more. That’s why we’re making statutory sick pay a right for every worker for the first time so people can stay in work rather than risk dropping out.

“This is a pro-worker, pro-business government in action – boosting productivity, while ensuring people don’t have to choose between health and wealth, helping deliver our Plan for Change.”

Overall, there were more than 1,700 responses to the six-week consultation from charities, businesses, trade unions and workers.

TUC general secretary Paul Nowak said he hoped the changes would be the start of a programme of sick pay reform, adding that his union would continue to campaign for higher rates.

He said: “Nobody should be plunged into hardship when they become ill. These reforms will stop millions from facing a financial cliff edge if they get sick.

“Making statutory sick pay available to all workers – and from day one – shows why the government’s Employment Rights Bill is so important. With sick pay rights from the first day of sickness, you will know that your family is protected. And you can take the time you need to recover.”

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