Overhaul of sick pay rules would pump billions into UK economy, experts say

A report from the Center for Progressive Change think tank outlines how reforming the system could benefit businesses, workers and the Treasury

Safe Sick Pay campaign director Amanda Walters helps make sick pay available to everyone from day one of illness 'should be a minimum guarantee'

A sick pay overhaul could inject more than £4billion into the economy, according to a report published today.

Researchers found that some workers on statutory sick pay received just £1.10 an hour in the first week and less than £3 an hour thereafter. A study by WPI Economics, commissioned by the Center for Progressive Change think tank, says reforming the system could reduce sickness absence and boost productivity.

He estimates an overhaul, including raising the SSP to the national living wage rate of £10.42 an hour for workers aged 23 and over, could yield up to £4.1 billions of pounds to the economy by reducing the overall absence of illness by limiting the spread of infections and reducing long periods of illness. The report, which will be published in Parliament today, found that the direct costs of an increase in sick pay would be outweighed by the benefits.

Christina McAnea, union general secretary Unison, said: "The pandemic has underscored how sick pay needs a complete overhaul. Those who earn the least often either don't qualify, or they face such a drop in wages that they might risk working when they shouldn't. Anyone who is sick should receive sick pay from day one. This way, those on poverty wages, such as caregivers, won't go to work when it's not safe because they're worried about their bills."

Christina McAnea, general secretary of the Unison union (

Picture:

Vuk Valcic/ZUMA Press Wire/REX/Shutterstock)

Safe Sick Pay Campaign Director Amanda Walters said making sick pay available to everyone from the first day of illness "should be a minimum guarantee if we want a healthy workforce. healthy and productive". She added, "We call on the government to act now on this important reform and ensure hard-working people get the support they need to rest, recover and get back to work."

WPI Economy...