Sick pay boost set to benefit 1.3 million low-paid workers

More than a million low-paid workers across the UK are set to benefit from changes to Statutory Sick Pay (SSP), the UK government has announced.

The reforms, which come into effect in April, will ensure that 1.3 million people who fall ill will receive either 80% of their average weekly earnings or the new SSP rate of £118.75 per week—whichever is lower.

The changes aim to provide financial security for sick workers while maintaining a fair balance for businesses.

Under the government’s Plan for Change, the new system is expected to help workers remain in employment rather than face financial hardship or risk leaving the workforce altogether.

Announcing the reforms, Deputy Prime Minister Angela Rayner MP said:

“What we put into our workforce, we get back and more.

“That’s why we’re making Statutory Sick Pay a right for every worker for the first time so people can stay in work rather than risk dropping out.

“This is a pro-worker, pro-business government in action – boosting productivity, while ensuring people don’t have to choose between health and wealth, helping deliver our Plan for Change.”*

The government has emphasised that the reforms are key to improving the UK’s economic outlook.

Productivity growth has slowed in recent years, and ministers cite World Bank analysis that states, “without improvements in productivity, there is no economic growth.”

Secretary of State for Work and Pensions, Liz Kendall MP, 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 reforms follow a government consultation on SSP, which gathered 1,797 responses from businesses, charities, trade unions, and workers.

They also build on commitments to provide sick pay from day one and expand eligibility by removing the Lower Earnings Limit, currently set at £123 per week.

TUC General Secretary Paul Nowak welcomed the changes, saying:

“Nobody should be plunged into hardship when they become ill.

“These reforms will stop millions from facing a financial cliff edge if they get sick.

“Making statutory sick pay available to all workers – and from day one – shows why the government’s Employment Rights Bill is so important.

“With sick pay rights from the first day of sickness, you will know that your family is protected. And you can take the time you need to recover.

“We hope this is the start of a programme of sick pay reform and will continue to make the case for higher future sick pay rates.”*

The changes are part of the broader Employment Rights Bill, which is currently awaiting report stage in the House of Commons.

Alongside sick pay reforms, the government is also introducing measures to tackle insecure work, including new rules on fire and rehire practices, zero-hour contracts, and collective redundancy.