Ministers are set to announce that around 1.3 million people on low wages who find themselves ill are expected to either receive 80% of their average weekly earnings or the rate of Statutory Sick Pay which will be £118.75 per week from April – whichever is lowest.
Under its Plan for Change, the Labour government said the rate would be aimed at “striking the right balance between providing financial security for employees who fall ill, and the cost to businesses – all while retaining the incentives for people to return to work”.
Secretary of state for work and pensions Liz Kendall said: “For too long, sick workers have had to decide between staying at home and losing a day’s pay or soldiering on at their own risk just to make ends meet.
“No one should ever have to choose between their health and earning a living, which is why we are making this landmark change.
“The new rate is good for workers and fair on businesses as part our plan to boost rights and make work pay, while delivering our Plan for Change.”
The government’s response to its Statutory Sick Pay consultation will be published tomorrow alongside other responses and amendments to the Employment Rights Bill, including on tackling fire and rehire and zero-hour contracts to tackle insecure work.
It added its latest move follows the commitment to ensure the right to sick pay from the first day of illness, and to make more people eligible by removing the need to earn Lower Earnings Limit.
Government further revealed 1,700 responses to a six-week consultation helped inform the decision on the new rate, taking in to account the views of businesses, charities, trade unions and workers.
