In a recent survey of over 1,000 UK employers, the majority (62%) agreed that the statutory sick pay rate is too low and should be increased.
In its report ‘What should an effective sick pay system look like?’, the CIPD calls on the government to reform the statutory sick pay (SSP) system urgently.
The current UK SSP rate stands at £96.35 per week for up to 28 weeks, which is very low compared with most other European countries.
According to the report, the pandemic has further exposed the need for a more financially adequate SSP system – the CIPD is calling for the government to raise the rate to be at least equivalent to someone earning the National Minimum Wage/National Living Wage.
Rachel Suff, senior employment relations adviser at the CIPD, commented, “The UK’s SSP system has been broken for a long time and the pandemic has only highlighted its failure to protect the lowest paid and most vulnerable members of our society. However, despite a number of government consultations proposing reforms to SSP, there are currently no real plans to improve the system.
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Email Jaime“SSP deficiencies can have a devastating impact on people’s health and wellbeing, including financial distress. With an ageing workforce and skills shortages, it’s even more important that we have an effective SSP system to help employers attract and retain a diverse workforce.
“Not only does SSP need to provide an effective financial safety net for those unable to work when sick, it needs to better reflect today’s labour market. As well as immediate reform to remove the lower earnings limit, government should consult on how the system could cover those in atypical work including the self-employed. We also need more flexibility so that it’s easier for people to have a phased and sustainable return to work. This will bolster their chances of an effective full-time return in the long-term.”
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