Overhauling sick pay rules would pump billions into British economy, say experts

10 July 2023 , 23:01

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Safe Sick Pay Campaign director Amanda Walters aid making sick pay available for everyone from the first day of illness "should be a minimum guarantee"

A sick pay shake-up could pump up more than £4billion into the economy, a report says today.

Researchers revealed some workers on Statutory Sick Pay receive as little as £1.10 an hour in the first week and less than £3 an hour thereafter. A study by WPI Economics, commissioned by the Centre for Progressive Change think tank, claims reforming the system could cut sickness absence and boost productivity.

It believes an overhaul, including lifting SSP to the National Living Wage rate of £10.42 an hour for workers aged 23 and over, could be worth up to £4.1bn to the economy by slashing overall sickness absence by limiting the spread of infections and reducing long periods of illness. The report, which will be published today in Parliament, found direct costs of hiking sick pay would be outweighed by the benefits.

Unison union general secretary Christina McAnea said: “The pandemic underlined how sick pay needs a total overhaul. Those earning the least often don’t qualify, or they face such a huge drop in wages they could risk working when they shouldn’t. Anyone who’s ill should be given sick pay from the first day. That way, those on poverty wages, such as care workers, won’t go into work when it’s not safe because they’re worried about their bills.”

Unison union general secretary Christina McAnea (Vuk Valcic/ZUMA Press Wire/REX/Shutterstock)

Safe Sick Pay Campaign director Amanda Walters said making sick pay available for everyone from the first day of illness “should be a minimum guarantee if we want a healthy, productive workforce”. She added: “We are asking the Government to act now on this important reform and ensure that hard working people get the support they need to rest, recover and return to work.”

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WPI Economics director Matthew Oakley said: “The UK’s sick pay system is just not working. This evidence shows that reforms would be a win for workers, businesses and Government alike. Even with a conservative approach to estimating the benefits of policy change, we found that these significantly outweigh the short-term costs.”

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Ben Glaze