[UK] More than one million low-paid workers going without sick pay

[UK] More than one million low-paid workers going without sick pay
26 Jun 2024

A new report has revealed that 1.15 million workers in the UK - 3.5 per cent of the nation’s workforce - are ineligible for statutory sick pay (SSP) because they fail to meet the £123 weekly earnings threshold, HR Magazine reports.

The report, from think tank The Work Foundation was released on June 20. It showed that the value of sick pay has halved relative to earnings since its introduction in the 1980s. 

SSP currently replaces 17 per cent of average weekly earnings for eligible workers. Nearly half (47 per cent) of employers reportedly do not exceed the statutory minimum level of sick pay provision.

Speaking to HR magazine, Asli Atay - a policy adviser at the Work Foundation - said SSP reforms should be a priority for the next government after the election.

Ms Atay said, “We propose comprehensive reforms under an employment bill within the first 100 days of the next parliament, including removing the earnings threshold, initiating SSP from day one of illness, and increasing SSP to 60 per cent of usual wages or the real living wage equivalent. 

“Additionally, support measures should be extended to smaller employers to alleviate the financial burden.”

The study reportedly surveyed more than 1,000 senior business leaders. It found that sick pay ineligibility disproportionately impacts groups already facing labour market inequalities. Nearly two-thirds of the workers ineligible for sick pay are women (69.2 per cent), a third are disabled workers (33 per cent) and over half are young workers aged 16 to 24 (52.4 per cent).

Vicky Walker - group director of people at Westfield Health - told HR Magazine that employers can make sick pay and leave more equitable by implementing universal and transparent policies.

Ms Walker said, “Regardless of salary level, organisations should be offering the same amount of sick leave to all employees. Employers can create equitable sick pay policies by benchmarking against industry standards and engaging in dialogue with employees to better understand their needs. 

“It’s also important to create a transparent and accessible process for employees to use and record their sick leave. Having line managers stay in touch with their people about their health and offer support is a great way to achieve this.”


Source: HR Magazine

(Quotes via original reporting)

A new report has revealed that 1.15 million workers in the UK - 3.5 per cent of the nation’s workforce - are ineligible for statutory sick pay (SSP) because they fail to meet the £123 weekly earnings threshold, HR Magazine reports.

The report, from think tank The Work Foundation was released on June 20. It showed that the value of sick pay has halved relative to earnings since its introduction in the 1980s. 

SSP currently replaces 17 per cent of average weekly earnings for eligible workers. Nearly half (47 per cent) of employers reportedly do not exceed the statutory minimum level of sick pay provision.

Speaking to HR magazine, Asli Atay - a policy adviser at the Work Foundation - said SSP reforms should be a priority for the next government after the election.

Ms Atay said, “We propose comprehensive reforms under an employment bill within the first 100 days of the next parliament, including removing the earnings threshold, initiating SSP from day one of illness, and increasing SSP to 60 per cent of usual wages or the real living wage equivalent. 

“Additionally, support measures should be extended to smaller employers to alleviate the financial burden.”

The study reportedly surveyed more than 1,000 senior business leaders. It found that sick pay ineligibility disproportionately impacts groups already facing labour market inequalities. Nearly two-thirds of the workers ineligible for sick pay are women (69.2 per cent), a third are disabled workers (33 per cent) and over half are young workers aged 16 to 24 (52.4 per cent).

Vicky Walker - group director of people at Westfield Health - told HR Magazine that employers can make sick pay and leave more equitable by implementing universal and transparent policies.

Ms Walker said, “Regardless of salary level, organisations should be offering the same amount of sick leave to all employees. Employers can create equitable sick pay policies by benchmarking against industry standards and engaging in dialogue with employees to better understand their needs. 

“It’s also important to create a transparent and accessible process for employees to use and record their sick leave. Having line managers stay in touch with their people about their health and offer support is a great way to achieve this.”


Source: HR Magazine

(Quotes via original reporting)

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