The Employment Rights Bill passing through the UK parliament is a once-in-a-generation chance to end the scandal of people being pushed into poverty simply because they get sick. But though it contains some welcome reforms, says Sylvie Pope at The Centre for Progressive Change, it risks leaving many people worse off or still facing hardship.
“Both my partner and I had to claim sick pay. We couldn’t pay our bills or afford food on that pay, which forced me to return to work so we could survive and not lose our home. Upon my return to work, I attempted to end my own life due to the stress and the struggle of it all. I felt like once I couldn’t work, my whole world collapsed around me. It’s as if, unless I’m able to contribute economically, I don’t exist and don’t matter. You don’t think about these things until they happen to you.”
The story above from “Ashley” from the north-east of England is unfortunately not uncommon. Across the UK, one in four workers rely on Statutory Sick Pay, the legal minimum employers can pay them when taking time off sick. But at just £116.75 per week, or £3 an hour, no one in the UK today can afford to survive on sick pay.
The stress and hardship caused by low sick pay
Any of us, our friends or family could end up reliant on Statutory Sick Pay. If that happens, we shouldn’t be forced to live in poverty. For people with cancer, a mental health problem, a chronic condition or long-term injury, not being able to pay the bills because of low sick pay causes untold hardship and stress – stress that can also delay recovery.
Nor should we be forced to choose between risking our recovery and going back to work just so we can pay the bills. Every day, people with contagious diseases such as flu force themselves into work – and risk infecting their colleagues – because they cannot afford to take the time off they need.
Women, disabled people, health care workers and people from ethnic minority communities are particularly vulnerable to the hardship caused by problems with Statutory Sick Pay, as they are over-represented amongst low-income workers.
That’s why we welcome moves to reform sick pay in the Employment Rights Bill, now making its way through the UK parliament. However, as it stands, the Bill will not be effective in breaking the link between sickness and hardship for workers. As it reaches its “report stage” (where MPs get the chance to amend Bills), The Centre for Progressive Change, as part of the #SafeSickPay campaign, are urging MPs to seize the chance to amend it to bring decent pay to sick workers.
What does the new Bill propose?
The Bill has two measures that could make a difference:
1. Make Statutory Sick Pay available from the first day of illness. Previously, workers were not entitled to sick pay until their fourth day off work. Removing that waiting period is a welcome change that can help some workers take the time off they need to rest and recover, right from the start of any illness.
2. Remove the ‘Lower Earnings Limit’ so workers no longer have to meet an income threshold to be eligible for Statutory Sick Pay. Hundreds of thousands of workers on the lowest wages are not eligible for any form of sick pay because of this rule, particularly in women-dominated jobs such as cleaning and caring.
But some people will be worse off…
However, there is a serious flaw with the second of these proposals. As they are worded, some workers on low incomes only get a proportion of their salary. For those earning just above the threshold, that means their new rate of sick pay is likely to work out even lower than their current rate. Read more explanation of this problem – and a straightforward solution here.
…and sick pay is actually going to fall in real terms
Another big problem is the failure to tackle the fundamental issue of the rate being too low. Statutory Sick Pay will rise by 1.7% (just £2) in April 2025, which is less than inflation. That means people who desperately need Statutory Sick Pay will actually be worse off.
Analysis by the Centre for Research in Social Policy at Loughborough University highlights the stark reality: a full-time worker, cohabiting with a partner on an average UK salary, would lose £419 in net income for each week of illness under the proposed new rate, placing them below the minimum acceptable standard of living.
There is a chance to fix this
Together, we need to act urgently to seize this opportunity to strengthen sick pay. Workers, charities and businesses across the UK are calling on MPs to act now to amend the Bill and take the first step towards a rate of pay people can actually live on, by agreeing to consult on a new rate.
By amending the plans – crucially to ensure that no one ends up worse off than they are now – and taking steps to deliver a decent rate of pay, the UK Government can strengthen Statutory Sick Pay and finally break the link between illness and poverty.
Want to add your voice to the #SafeSickPay campaign led by the Centre for Progressive Change? Contact your MP here.
Author
*“Ashley” quoted above was working with Organise and The Centre for Progressive Change
The Centre for Progressive Change has a day of action today (February 7) as part of its campaign for #SafeSickPay. Find out more here.