Statutory Sick Pay (SSP) provides an important link between the employee and employer but now is "not the right time" to introduce changes to the sick pay system, the Government has maintained in its response to the Health is Everyone’s Business consultation.

The consultation posed several important questions on the future of SSP and proposals to reduce ill health-related job loss. In contrast to its conclusion, the Government acknowledged where changes were perhaps required but maintained now was not the time. It made the following comments:

SSP and the phased return to work
Under the current rules, SSP does not allow for phased returns. Payment of SSP stops when an employee returns to work, even if they return on reduced hours. This can deter employers from offering phased returns and employees accepting them. Respondents were broadly supportive of phased returns to work.

SSP and low earners
Employees who earn less than the Lower Earnings Limit (LEL), which is currently £120 per week, do not qualify for SSP. This includes those who have multiple jobs which are each paid below the LEL.

Government did not extend SSP to employees below the LEL as part of its response to the pandemic. Extending SSP in this way would not have been the most efficient way to support these employees and would have placed an immediate cost on employers at a time where most required Government support.

The consultation asked whether respondents agreed that SSP should be extended to employees earning below the LEL and views on the rate that should be extended to this group. A majority of respondents (75%) agreed that SSP should be extended to employees earning below the LEL. This measure was supported by small and large employer respondents alike. Respondents felt that by extending SSP to those earning below the LEL, employers would be better incentivised to reduce sickness absence for all of their employees.

Enforcing SSP
An effective enforcement system is vital to creating a level playing field for business and employees alike. There are indications that some employees are not receiving SSP when they are entitled to it, but instead relying on welfare benefits. Respondents felt that Government should be taking a more robust approach to enforcement and cracking down on employers who fail to meet their obligations. The majority (72%) agreed that there was a need to introduce better enforcement of SSP.

The Government says it remains committed to the development of a Single Enforcement Body, which will bring together existing enforcement bodies into a single and recognisable organisation. The Body will protect workers across the country and help to provide a level playing field for the majority of employers who respect the law. As part of the consultation response on the Single Enforcement Body, Government confirmed its intention to include enforcement of SSP within the Body.

Read the Government’s full response here.