Labour pressed to urgently address sick pay reform

‘With the cost-of-living crisis, our flawed sick pay system is putting millions at risk.’

More than a million workers in Britain are unable to claim Statutory Sick Pay (SSP) because of low earnings and may feel that they are forced to work when they are unwell. This was the finding of a new report by the Work Foundation at Lancaster University that looks at the inequalities involving sick pay in Britain.

The report suggests that around two-thirds of the 1.15 million workers in Britain who are currently below the SSP earnings threshold of £123 a week are women. A third that fall below the limit are people living with disabilities, and more than half are young workers, aged between 16 and 24.

Alice Martin, head of research at the Work Foundation, warns how Britain’s workforce is “getting sicker and yet not everyone gets the time off they need to live healthy lives.”

“The current low rate of sick pay compels some people to work while they are unwell to make ends meet. This risks compounding existing health conditions and can lead to people dropping out of the labour market altogether,” said Martin.

“We currently have a record 2.83 million people economically inactive in the UK due to long-term health issues – and our previous research suggests many of these people want to work but aren’t given the necessary support to do so,” she added.

The analysis also looked at other leave policies offered to UK workers and assessed whether they are fit for purpose. It found that, overall, lower earners have less access to paid time off. Analysis of data by the Office for National Statistics shows that, in 2022, employees with higher-than-average earnings of £32,882 a year had, on average, two more days of annual leave entitlement than those with below-average earnings.

The researchers warn that this can create a ‘vicious cycle,’ as people with lower incomes and often insecure work, find themselves having to risk their health by having less time off work for holidays and other forms of leave.

“It is imperative that the next government works with employers to create an effective plan to enable workers to have healthier working lives – or the UK’s sickness crisis is likely to worsen. This includes ensuring people have time off to rest and recuperate,” said Alice Martin.

An open letter to the work and pensions secretary Liz Kendall, and health secretary Wes Streeting, informs how almost two million workers in Britain are unable to get sick pay because they don’t earn enough money. The letter, which has been signed by almost 25,000 people, also warns how at £109.40 a week, many who do receive sick pay cannot afford to pay for essentials. Additionally, sick pay only starts on the fourth day of illness, meaning workers cannot afford to take time off due to illness, and may face punishment for being sick.

The open letter has been compiled by members of the Organise Network, a worker-driven movement whose million-plus members have a shared mission of making life work better for everyone. 

It points to new data that shows more than 98 percent of workers cannot pay their bills and cover living costs on £109.40 a week. The network is calling on the new government to remove the earnings threshold so that everyone is eligible for sick pay, that people receive sick pay from day one, rather than day four of being sick, and that workers can afford to take time off by increasing SSP so it is in-line with wages.

The letter reads: “With the cost-of-living crisis, our flawed sick pay system is putting millions at risk. We urge you to pass new laws to make sick pay better for everyone. This will create a safer, healthier work environment and support workers in need.”

Gabrielle Pickard-Whitehead is a contributing editor to Left Foot Forward