Raising the level of statutory sick pay in the UK to the same level as statutory maternity pay will help more Britons back into the workplace after a period of convalescence, a cross-party committee has suggested.
In its 44-page report, published on Thursday (March 28), the Work and Pensions select committee urged the government to do more to stop people relying long-term sick benefits instead of getting back into the workplace.
The committee said the UK was "experiencing relatively high rates of sickness absence and ill health, including high rates of mental health problems among young people, and there is growing concern about levels of ill health-related economic inactivity".
While noting measures put in place by chancellor Jeremy Hunt about reducing rates of ill health and getting older workers back into the workplace, the committee said that a review of statutory sick pay was urgently needed.
It said reforming SSP was part of the solution to help people remain financially resilient while getting rehabilitated back into the workplace.
Inadequate support
Most workers benefit from occupational sick pay provided voluntarily by employers as part of the workplace benefits, but a significant minority rely only on Statutory Sick Pay, which is less generous than OSP.
Some are not entitled even to SSP. The cost of paying SSP is borne entirely by employers, but to qualify a worker must be classed as an employee and earn above the lower earnings limit.
Even then, SSP is not paid for the first three days of sickness absence.
The committee report, which is now in its fourth stage, said: "We conclude that SSP does not provide adequate support for those who most need protecting from financial hardship during periods of sickness absence.
"In particular, we raise concerns about the SSP rate and the LEL.
"We find that the former is too low and suggest that a modest increase to the SSP rate in line with statutory maternity pay would strike a reasonable balance between providing additional financial support to sick workers and not placing excessive extra costs on businesses.
"We also conclude that all employees, not just those earning above the LEL, should be entitled to SSP."
The committee also noted there is a tension between improving benefits and not burdening small businesses with additional, possibly unmanageable, financial outlays.
The committee also considered whether SSP should start from day one, rather than after day three as it is as now, but said there was insufficient evidence to be confident as to what behaviours such a change might influence.
Welcome report
The report was welcomed by insurer Zurich, which recently launched its campaign to help Britain's employers rehabilitate colleagues back into the workplace after a period of ill health.
Peter Hamilton, head of market engagement for Zurich, said absence from work because of sickness is problematic for all involved – for employees, employers, and the economy.
