The Department for Work and Pensions (DWP) has confirmed a significant rule change for anyone calling in sick at work. Pat McFadden, the DWP Secretary, addressed the House of Commons regarding reforms to statutory sick pay (SSP).
Key Changes to Sick Pay
In a landmark move, the DWP has removed the lower earnings limit for SSP and abolished the three-day waiting period. This means workers can now access sick pay from the first day they are ill, rather than waiting until the fourth day. The changes are expected to cover an additional 1.3 million people, particularly benefiting low-paid workers and those with multiple employers.
Parliamentary Exchange
The announcement followed a question from Labour MP Yuan Yang, who asked about the adequacy of SSP rates. Mr McFadden stated: "For the first time ever, we have removed the lower earnings limit for statutory sick pay, as well as the waiting period so that people can access sick pay as soon as they need it."
Yang expressed pride in the Employment Rights Act 2025, noting: "From this month, workers will get statutory sick pay from the first day they are ill. Too many people in Reading are working through illnesses; this measure will protect them and improve workplace productivity." However, she highlighted that the flat rate of SSP remains at four-fifths of average earnings, which could still be a barrier for low-income workers.
Expert Opinion
Matthew Oakley, Founder and Director of WPI Economics, commented: "Sickness absence costs the economy and impacts workers severely. Improving sick pay enables people to recover properly, reduces extended sick leave, and boosts productivity." He called for a wider overhaul of sick pay and better incentives for employer investment in occupational health.
