‘Broken’ sick pay system needs urgent reform, say TUC

New report renews call for SSP earnings limit to be abolished and amount of payment to be increased to £330 a week

The 'broken' sick pay system needs urgent reform, the TUC has said.

In a new report, Sick pay that works, the TUC argues that, while a robust sick pay system is essential in order to safeguard the incomes of those who become sick and ensure that those who are potentially infectious stay away from their workplaces -

'The Covid-19 pandemic has shown in stark terms that our sick pay system is broken. It needs to be urgently overhauled to help workers through the coronavirus outbreak and beyond.'

In particular, the TUC says that -

• almost two million employees are not eligible for statutory sick pay (SSP) due to the earnings threshold;
• at £95.85 a week, SSP is one of the lowest rates of sick pay in Europe;
• the low level of SSP has deterred people with Covid-19 symptoms from self-isolating; and
• the £500 self-isolation payment for people in England is failing to support many workers due to the restricted eligibility criteria and lack of funding for the scheme.

Highlighting reports that the Department of Health and Social Care favours universal payments of £500 for those testing positive for Covid-19, the TUC goes on to say that, although the rapid introduction of such a scheme could help tackle the virus and save many workers from hardship, it would need to be accompanied by further reforms to the sick pay system, including that the government should -

• abolish the SSP earnings threshold;
• permanently remove the SSP three-day waiting period;
• increase the amount of SSP to £330 a week, the equivalent of a week’s pay at the real living wage; and
• provide additional funds to ensure employers can afford to pay sick pay.

For more information, see Sick Pay that works from tuc.org.uk