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Sean Povey, Deputy Director, Department for Work and Pensions (DWP) and Department for Health and Social Care (DHSC) Joint Work and Health Directorate, explains how the government is strengthening statutory sick pay (SSP), discusses the results of the associated consultation and outlines the next steps
T he Plan to Make Work Pay will create a new partnership between businesses, trade unions and working people. It sets out an ambitious agenda to: l ensure workplace rights are fit for a modern economy l empower working people l deliver economic growth. I’m proud that ensuring the safety net of sick pay is available to those who need it most is a key part of this commitment. Through the Employment Rights Bill, we’re ensuring all employees have access to SSP irrespective of their income level, and the peace of mind that this brings when they need to take time off work due to sickness. “The Chartered Institute of Payroll Professionals and its members are a key part of this, and we’re really keen to learn from your valuable insights and expertise” As Deputy Director for SSP within the DWP and DHSC, I’m really excited about the changes we’re making and the positive difference they will make to our lowest earners. This article will: l guide you through the key changes l recap on our consultation process l explain what our next steps will be.
“I’m proud that ensuring the safety net of sick pay is available to those who need it most is a key part of this commitment”
Creation of the Fair Work Agency (FWA) We’re also unifying the labour market enforcement system through the creation of the FWA. This will mean more efficient and effective enforcement of employee rights through a new unified, singular enforcement body. Strengthening SSP consultation Following the removal of the LEL, employees will receive a percentage of their average weekly earnings or the flat rate of SSP, whichever is lower. The consultation asked respondents what this percentage should be. We’re grateful to all those who took the time to respond to the consultation, and following careful consideration of all responses received, we have amended the Employment Rights Bill to set the percentage rate at 80%. The government is confident that an 80% rate strikes the right balance between providing financial security to employees who need it, while limiting additional costs to businesses. An 80% rate will help protect those on lower incomes from falling into financial hardship and will better enable people to take the time off they need to recover. This can help prevent the spread of infectious diseases, reduce the overall rate of sickness absence, reduce presenteeism and deliver productivity benefits for businesses and the economy, delivering on our cross- government mission for growth. Next steps As we move forward with our commitment to strengthen SSP and work in partnership with businesses to upgrade employee rights, we’ll continue to listen and learn from employers, employees and civil society. We have committed to working closely with employers of all shapes and sizes, as well as employer and employee representative bodies and professional bodies. This is to further understand the challenges that may be presented because of these changes,
and what more can be done to support their implementation. The Chartered Institute of Payroll Professionals and its members are a key part of this, and we’re really keen to learn from your valuable insights and expertise in the coming months. The Employment Rights Bill is only the first phase of delivering the Plan to Make Work Pay. Alongside the government’s new Industrial Strategy, the Bill will support the government’s mission to increase productivity and create the right conditions for long-term sustainable, inclusive and secure economic growth. In parallel, the government has launched the Keep Britain Working Review, led by Sir Charlie Mayfield, which will unlock work and boost living standards as part of our Plan for Change. After conducting an initial discovery into the underlying issues, the review has launched a call to all stakeholders to engage with the early review findings and input views, including via a survey also launched on GOV.UK. The survey can be accessed here: https://ow.ly/EfBk50VsuXq. If you would like to know more about the SSP consultation, please find our published response to the consultation here: https://ow.ly/v3CC50Vsv24. If you would like to get in touch regarding the changes being made to SSP, please email us at SSP.Team@DWP.gov.uk. n The CIPP’s Policy and Research Team needs you! As mentioned in the article, the CIPP will be working alongside the DWP and DHSC Joint Work and Health Directorate to ensure the changes to SSP are implemented smoothly and accurately. We know that you, the payroll professionals, are best placed to share your expertise and experiences of processing sick pay, so we want to hear your initial thoughts regarding the changes and the next steps laid out above. Get in touch with us, at policy@cipp.org.uk .
Key changes to SSP
SSP available from day one We’re removing the waiting period, meaning employees are now eligible for SSP from the first day of sickness absence. Removal of the lower earnings limit (LEL) We’re also removing the LEL meaning all eligible employees, regardless of their earnings, will have access to SSP when off sick.
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| Professional in Payroll, Pensions and Reward |
Issue 110 | May 2025
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