DWP Announces Sick Pay Boost: 1.3 Million Workers to Gain £100 Extra Per Week – Are You Eligible?

The UK government has announced a major reform of Statutory Sick Pay (SSP), aimed at benefiting around 1.3 million low-income workers. The changes are designed to make the sick pay system fairer, with the Department for Work and Pensions (DWP) confirming that some workers could be up to £100 per week better off as a result of the new policy.

What Is Changing?

Currently, SSP stands at £116.75 per week and is only available to employees earning more than the Lower Earnings Limit (LEL) of £123 per week.

Additionally, SSP is not paid during the first three days of sickness, which often leaves low-income workers without financial support during short-term illnesses.

The proposed Employment Rights Bill will introduce the following key changes:

• SSP eligibility extended to all employees, regardless of their earnings level.
• Removal of the three-day waiting period, meaning sick pay will start from day one of absence.
• Introduction of a percentage-based SSP for low earners, ensuring workers earning less than the full SSP rate receive up to 80% of their income.

The government hopes these changes will prevent workers from having to choose between their health and their income.

How Will the Changes Benefit Workers?

The reforms aim to support low-paid workers who previously did not qualify for SSP or received payments too low to cover their basic living costs. Here’s what the changes mean in practical terms:

• Workers previously earning below the LEL (£123 per week) will now qualify for sick pay, ensuring they receive financial support when unwell.
• Eliminating the waiting period will help workers who suffer from short-term illnesses, as they will no longer lose income for the first three days of absence.
• A percentage-based sick pay scheme means those earning less than the full SSP rate will receive up to 80% of their usual earnings, increasing their weekly SSP by up to £100 in some cases.

Who Will Benefit?

These changes will primarily help low-income and part-time workers, including:

• Retail and hospitality employees
• Care workers
• Gig economy workers (where applicable under employment laws)
• Part-time staff earning below the previous threshold

The changes will particularly impact those who work variable hours or multiple low-paying jobs, ensuring they receive proper financial protection during illness.

How Employers Are Responding

While the reforms have been welcomed by trade unions and worker advocacy groups, some business owners have expressed concerns about increased costs. Employers will now have to pay sick pay from day one and cover additional employees who previously were not eligible for SSP.

Business Concerns

• The reforms could cost businesses up to £5 billion annually, according to industry estimates.
• Small businesses may struggle to cover the increased sick pay burden.
• Concerns about potential abuse of the system, where workers could take advantage of SSP starting from day one.

The government has stated it will work closely with businesses to ensure the transition is smooth. Employers can find guidance on statutory sick pay obligations.

Reactions from Trade Unions and Worker Advocacy Groups

Workers’ rights organizations have praised the reforms, calling them a long-overdue improvement to the UK’s sick pay system.

• Trades Union Congress (TUC): Called the reforms a “step in the right direction” but urged further increases in SSP rates.
• Citizens Advice: Welcomed the move but highlighted that many low-paid workers will still struggle if they rely solely on sick pay.

What Should Workers Do Next?

1. Check your eligibility: If you previously earned below £123 per week and were ineligible for SSP, you may now qualify.
2. Understand the new sick pay rates: If you’re on a low income, you could receive up to 80% of your normal earnings while on sick leave.
3. Speak to your employer: Ensure they are aware of the new changes and update your workplace policies accordingly.
4. Stay informed: Follow updates on GOV.UK for further details on the new policy rollout.

Final Thoughts

The government’s proposed reforms to Statutory Sick Pay are expected to help 1.3 million workers, particularly those in low-paid and part-time roles.

While the changes have been broadly welcomed, concerns remain over the financial impact on businesses and whether the SSP increase is sufficient to cover workers’ needs.

For now, workers should stay informed, check their eligibility, and be aware of their rights as the policy moves closer to implementation.

For further details, visit the official GOV.UK sick pay page or consult organizations like Citizens Advice for guidance on employment rights.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.